Energy Sector Capacity Building Activity

Successful development and adoption of a utilities incentive mechanism to promote energy efficiency is needed to reduce household consumption.

ESCB in its first year conducted an extensive consultative process with government stakeholders to facilitate the adoption of a Demand Side Management (DSM) Incentive Mechanism. The recommendations were developed cooperatively by MEMR, the Energy and Mineral Resources Commission (EMRC), and the four Jordanian electricity companies – NEPCO, EDCO, IDECO, and JEPCO.

DSM involves providing incentives and education for customers to support them to reduce energy usage through adoption of renewable energy and increased energy efficiency. It also includes a robust monitoring, evaluation and validation system.

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The DSM recommendations provide a framework for sustainable DSM programs to be carried out by the electricity companies under the shared oversight of MEMR and the EMRC.

The DSM Programs will be implemented by newly-established DSM Units in the three private energy utility companies. ESCB is providing training and technical assistance to these Units. DSM program designs are supported by a financial model developed by ESCB, which helps to identify the most cost-efficient technologies to adopt for energy savings.

For reports on the development and implementation of the DSM Incentive Mechanism, see the Technical Reports section of this website.