Energy Sector Capacity Building Activity

Jordan’s energy security is precariously at risk. Jordan imports 96% of its oil and gas, mostly at global market prices, while simultaneously striving to expand energy services for its growing population and economy. The total cost of energy imports takes about 19% of Jordan’s Gross Domestic Product. Many households and institutions do not pay their energy bills; and at lower electricity consumption levels, tariffs are highly subsidized. The government is operating with crippling debt due to the high energy costs and subsidy outlays.

There are many initiatives by government, NGOs and the private sector to increase adoption of renewable energy and promote adoption of energy efficiency measures.

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The government is also working to diversify international energy sources.

Long-term initiatives, such as increased use of renewable energy and the development of other alternative energy supplies, will help address the supply side of Jordan’s energy equation. However, Jordanian energy sector actors – public and private – are also addressing the demand side through activities to improve energy efficiency and strengthen overall sector management.

As part of its 2007-2020 Energy Strategy, the Government of Jordan aims to increase the proportion of renewable energy in Jordan’s energy mix from 2% in 2010 to 10% – targeting an additional 1,000 MW of wind and 800 MW of solar energy by 2020. In addition, the government is targeting a 30% increase in solar water heater uptake and 20% reduction in energy consumption by 2020.

The government adopted the Renewable Energy and Energy Efficiency Law in 2012 and is working on the relevant regulations and by-laws to put it into practice. The law was developed by the Ministry of Energy and Mineral Resources (MEMR) Energy Efficiency Working Group, consisting of donors, lenders, governmental entities, regulatory agencies, utilities, NGOs, and the private sector.