Renewable Development in Jordan

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1 Increasing shares of renewable energy increasing the flexibility of the electricity system Work Shop Amman 28-29, Nov Renewable Development in Jordan Ahmed N. Aldohni National Electric Power Company NEPCO, Jordan 1

2 Content Energy Structure in Jordan. Jordanian Electrical system figures. Regularity frame work. RE project steps and schemas. Challenges and solutions Conclusions 2

3 Electricity Sector Policy Maker Regulator Ministry of Energy & Mineral Resources Energy and Mining Regulatory Commission(EMRC) Generation & Power Producers CEGCO SEPGCO IPPS Interconnection Transmission NEPCO JEPCO Distribution IDECO EDCO 3

4 Fuel cost (Pass through) Single Buyer Model: Fuel Generation Companies PPAs Electrical Interconnection NEPCO Distribution Companies Principal Consumers Regulated Tariff (EMRC) 4

5 Jordan s Power System (2016) Peak load : 3250MW Installed Capacity ( include RE): 4419 MW Total Generated Energy: GWh Total consumed Energy : 16669GWh Consumption per Capita kw.h 5

6 Jordan s Power System ( ) Energy (Gwh) Peak Load (MW) Losses (%) Average Growth for energy 5.6 % Average growth 4.3 % 6

7 Energy generated by fuel type: 100% 90% 80% 70% 60% 3% 4% 1% 7% 3% 2% 24% 2% 11% 5% 2% 3% 3% 16% 32% 44% 38% 50% 31% 1% 4% 2% 7% 1% 50% 40% 30% 20% 10% 0% 87% 1% 32% 29% 87% 67% 28% 53% 2% 2% 47% 23% 2% 23% 15% 1% 5% Imported NG Local NG HFO LFO Imported Energy RES 7

8 Jordan enjoys world class quality RE High solar radiation figures of 5 7 kwh/m2 per day with about 300 sunny days per year. Wind speed reaching between 7.5 to 11.5 m/s in some places. 8

9 Regulatory Framework 1. The Renewable Energy and Energy Efficiency Law was passed as permanent Law in2012 and amended in This law allows investors to RE projects through the direct proposal submission. 3. The By law of Direct Proposals of Renewable Energy Projects has been issued in Mid A well-founded reference price list (ceiling prices)for different Renewable technologies was set by the EMRC. 9

10 Regulatory Framework 5. Regulation for Small RE Systems (Roof Tops & Wheeling) was set by EMRC. 6. The By law of Tax Incentive regime, was issued on Tax exemptions fore and EE systems and Equipment. 7. The Jordan Renewable Energy and Energy Efficiency Fund(JREEF)has been established, which aims to channel financial resources to that end. 8. Grid Expansion and Reinforcement Plans are ongoing 10

11 Template Contractual Documents 1. Prequalification Requirement 2. Instruction For Developing RE Projects (IRPP). 3. Power Purchase Agreements (PPA) 4. Land Lease Agreement (LLA). 5. Governmental Guarantee Agreement (GGA) 11

12 Key factors for successful RE Projects Stable Regulatory Framework Adequate and Transparent Public Policies and Targets. Clear Financial and Support Schemes. Well defined Infrastructure Provisions (Lands, Grid connections, etc.). Incentives and Tax exemptions 12

13 RE Development Schemes About 2400 MW of Wind & Solar PV projects are expected to be developed in Jordan until 2021, 544 MW of them are already operational (sharing with 5.6% of generated electricity). We follow a policy of 4-tracks-approach to develop RE: Direct Proposal scheme EPC Turn-Key projects Small Scale RE Schemes (Net Metering) Power Energy Wheeling. 13

14 Operational RE Projects 117 MW/ JWPC Wind/ Tafila Direct Proposal Operational Sep MW 10 MW / Philadelphia Solar PV Mafraq/ Direct Proposal Operational Oct MW/ Azraq Solar PV Spanish Grant/ EPC Atersa & Ennera Operational Apr MW/ Ma an Wind Gulf Grant/ EPC/ Elecnor - 66 MW Operational Sep MW Under Commission 5.6% of Generated Electricity 200 MW / Solar PV Direct Proposals Round I International + Local Developers Operational MW of Small Scale Solar PV Operational Systems 14

15 RE Projects Under Construction 103 MW/ Qweira Solar PV Gulf Grant/ EPC TSK+Enviromena To be Operational End of MW / FRV/ Solar PV Direct Proposals Round II To be Operational in MW 13 MW/ Zatari Solar PV German Grant/ EPC Belectric Gulf To be Operational End of MW / FRV (Hareon)/ Solar PV Direct Proposals Round II To be Operational in MW / Acwa (Sunrise)/ Solar PV Direct Proposals Round II To be Operational in MW/ Alcazar (Green Watt)/ Wind Direct Proposals Round I To be Operational in MW/ KEPCO/ Wind Direct Proposals Round I To be Operational in MW of Small Scale Solar PV Systems 15

16 RE Projects Under Financial Close 50 MW / Safawi/ Solar PV Direct Proposals Round II To be Operational in MW/ Masdar /Solar PV Governmental Initiative To be Operational in MW 50 MW / Abour/ Wind Direct Proposals Round I To be Operational in 2019/ MW / Mass/ Wind Direct Proposals Round I To be Operational in 2019/ MW / Alcazar (Hecate)/ Wind Direct Proposals Round I To be Operational in 2019/ MW/ KOSPO/ Wind Direct Proposals Round I To be Operational in 2019/ MW / Acwa/ Solar PV Direct Proposals- Generation Co. To be Operational in MW / AES-Mitsui/ Solar PV Direct Proposals- Generation Co. To be Operational in

17 RE Projects in the Pipeline 50 MW/ Philadelphia Solar PV/ Direct Proposal To be Operational in MW / Solar PV MW Wind Direct Proposals Round III Under Tendering Operational MW Solar PV/ South Amman German Grant/ EPC Under Tendering Operational MW of Small Scale Solar PV Systems Governmental Universities Direct Proposals for RE Projects 50 MW Operational

18 RE Projects Locations Tafila 117 MW King Hussain 80 MW (2016) Rajif 86 MW(2018) Fujaij 90 MW(2018) Kospo 50 MW (2018) Xenel 50 MW (2019) Mass 100 MW (2019) Shobak 45 (2019) MDA1 & others 200 MW( 2016) PV Quwera 103 MW (2017) Round MW (2018 & 2019) Masdar 200 MW (2019) Azraq 5 MW in operation AES & Risha 90 MW (2019) WAJ 50 MW ( 2018) KFW 40 MW (2019) Others 50 MW (2019) Round MW(

19 Future RE shares Share from the total Energy generated (%) Generated Energy GWh Project Capacity MW Year PV Wind PV Wind PV Wind % Total 19

20 Challenges and solutions No RE control Center No Strong connection with other countries. Minimum load. Wheeling Projects. ESS 20

21 Conclusion Jordan has laid down the necessary Policy and Regulatory framework for Renewable Energy, and is ready now to attract and receive commercial investments. Template contractual documents (PPAs) and Instructions for developing RE projects do exist. 21

22 Conclusion Jordan has laid down the necessary Policy and Regulatory framework for Renewable Energy, and is ready now to attract and receive commercial investments. Template contractual documents (PPAs) and Instructions for developing RE projects do exist. Grid reinforcement (Green Corridor) is undergoing by NEPCO in order to install more RE Capacities. 22

23 Thank you for your attention 23