Renewable Energy

About the Renewable Energy Sector

The Hashemite Kingdom of Jordan is considered an energy-importing country, which increases the share of imported energy in the GDP and puts significant pressure on the balance of payments. This also creates a continuous need for foreign currencies to finance the country's energy imports, necessitating the search for alternative sources of conventional energy. Renewable energy is one of the most important alternative sources available in the Kingdom. Since the strategies are flexible enough to adapt to new developments and events, the renewable energy strategy has been revised to target 20% of the total energy mix by 2020. The strategy focused on developing methods for utilizing various renewable energy sources, including solar energy, wind energy, thermal energy, geothermal energy, hydropower, and any other natural sources, with the aim of increasing the share of renewable energy in the total energy mix. This will help reduce the oil bill, diversify energy sources, protect the environment, and achieve sustainable development.

The Hashemite Kingdom of Jordan has clear richness in renewable energy sources (renewable energy is energy derived from natural, inexhaustible sources, including solar energy, wind energy, hydropower, and biomass), particularly solar energy, due to the Kingdom's high potential for direct solar radiation. This is because Jordan lies within the so-called "solar belt," which includes areas between latitudes 25° North and 25° South. Various scientific studies have shown that the number of days the sun shines in Jordan is 316 days per year, with an average of 8 hours per day. As for wind energy, it is considered one of the best sources of renewable energy for electricity generation in the Kingdom, as many areas are characterized by wind speeds ranging between 7-8.5 meters per second, which is suitable for building wind power plants to generate electricity.

Reliance on renewable energy has become a global trend and a field for international cooperation and the exchange of expertise. To secure the legislative framework for institutions involved in the renewable energy sector, many laws, regulations, and instructions have been issued in the Hashemite Kingdom of Jordan. The first of these was the Renewable Energy and Energy Efficiency Law No. 13 of 2012, which regulates all matters related to renewable energy. It aims to encourage the use of renewable energy systems for electricity generation, promote investment and competition in the sector, encourage the production and manufacturing of inputs, and support any equipment that helps improve energy efficiency in general. Many regulations and instructions have also been issued under this law to achieve these goals. The Ministry of Energy and Mineral Resources, in collaboration with specialized technical entities and centers, is working on plans to improve the sector and optimize its use. This is done by coordinating with the licensed wholesale suppliers and issuing tenders or soliciting bids on a competitive basis to develop one or more sites listed in the approved lands list according to the provisions of the Renewable Energy and Energy Efficiency Law for electricity generation purposes

The renewable energy sector in the Kingdom is regulated and monitored by the Energy and Minerals Regulatory Commission, which defines the responsibilities of licensees and grants them the necessary licenses in accordance with applicable laws, instructions, and regulations. This is done to balance the interests of consumers, licensees, investors, and any other relevant parties.

In recent years, there has been a significant growth in the reliance on renewable energy through the completion of numerous projects, in addition to the signing of several power purchase agreements that pave the way for future projects in the renewable energy sector. The Kingdom has also witnessed notable growth in the use of solar energy to meet the private consumption needs of homes and places of worship, as well as the introduction of these systems into the commercial, hotel, and industrial sectors through net metering and cross-border systems.

On another note, the Hashemite Kingdom of Jordan, represented by the Ministry of Energy and Mineral Resources in partnership with the Energy and Minerals Regulatory Commission, seeks to reduce electricity wastage and its improper use. This is being achieved through raising energy awareness among citizens, educating them on the impact of inefficient and improper electricity usage, and highlighting its negative effect on their consumption.

To view the main operations or regulations and legislation for renewable energy, please select from the classification below.