Jordan 2020-2030 Energy Strategy

Non-Aligned Movement has emphasised the need to develop clean energy for sustainable development. The Movement has stressed the need to accelerate the development, dissemination and deployment of affordable and cleaner energy efficiency and energy conservation technologies, new and renewable energy technologies.

Energy is one of the most important mainstays of the Jordanian economy and society. On November 29, 2020, Jordan’s Minister of Energy and Mineral Resources Hala Zawati and CEO of Housing Bank Ammar Safadi signed a memorandum of cooperation regarding the installation of solar electric and water heating systems. Rasmi Hamzeh, Director of the Jordan Renewable Energy and Energy Efficiency Fund (JREEEF), which is affiliated with the Ministry of Energy, said that the fund will cover 30 per cent of the costs of solar systems, while the remaining 70 per cent will be paid in instalments facilitated by the bank. The cost of one solar cell used for generating energy, with a capacity of 3.6 kilowatts, should not exceed JD550, of which 70 per cent should be paid over 48 months, Hamzeh noted. The memorandum comes in light of the country’s 2020-2030 Energy Strategy, which aims at increasing energy efficiency, reducing carbon emissions and bringing down energy costs. The 2020-2030 Energy Strategy of the country is a reflection of its commitment to promote the use of renewable energy.

The 2020-2030 Energy Strategy was released by the Jordanian Minister of Energy Hela Zawati on July 7, 2020. The Strategy aims at diversifying energy forms, increasing the contribution of indigenous energy sources, improving energy efficiency in all sectors and reducing the impact of energy costs on the national economy, making Jordan a regional hub for all forms of energy exchange. The Strategy also calls for Jordan to be self-reliant, to reduce energy costs for local consumers, to diversify and increase reliance on local energy sources, and to reduce energy imports. One of the primary objectives of the strategy is to improve energy efficiency by strengthening national energy efficiency legislation and implementation of plans.

The Strategy targets to increase the proportion of electricity generated from local sources from 15% in 2019 to 48.5% in 2030. The energy efficiency of all sectors will increase by 9 percent in 2030 compared to 2018, and that of the water sector by 15 percent in 2025. One of the most important targets of the Strategy is to reduce carbon emissions by 10% The Strategy states that Jordan does not need to produce more electricity from traditional sources, and hence nuclear energy is not a part of the strategy.

The strategy plans to increase renewable energy’s share of the entire energy mix from 11 per cent in 2020 to 14 per cent by 2030. Jordan has performed exceptionally well in this respect. Jordan achieved a remarkable breakthrough in the period 2015-2020 by raising renewable energy’s contribution from 2 per cent to 11 per cent. These goals are consistent with the government’s priorities and contribute to the country’s goals of sustainable growth, creating an attractive investment environment, reducing poverty and unemployment, and establishing effective social protection systems.

In accordance with the Strategy, Jordan will gradually reduce dependence on imported natural gas for its power plants by expanding oil shale production. “We will decrease imported fuel and increase domestic energy sources as part of self-sufficiency,” Zawati said at the launch of the country’s energy plan.

Jordan has reiterated its commitment to promote renewable energy at prominent forums. Delivering Jordan’s speech during the 19th and 20th meetings of the Abu Dhabi-based International Renewable Energy Agency (IRENA), in his capacity as Jordan’s permanent representative to the agency, Jordan’s Ambassador in Abu Dhabi Juma Abbadi remarked said that renewable energy has become “the main player that draws the future energy map not only in Jordan but also across the world”.

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