Jordan Electricity Sector

Transcription

1 Jordan Electricity Sector

2 Transmission Grid Network Length (Km/Circuit) 132KV Lines: KV Cables: KV: 904

3 ELECTRICITY SECTOR The convergence of Jordan s rising energy consumption trends alongside decreasing security of energy supply is impacting public budget fiscal space for border development goals and country ability to users domestic energy services. The government has been focusing on adopting several policies to satisfy growing energy demand and decrease its reliance on imported expensive fossil fuels. The energy demand grew dramatically in the past years in Jordan: 5.5% year for primary energy demand (88% source from oil and oil product) and 7.5% year for electricity. This reflects both population and economic growth.

4 ELECTRICITY SECTOR Jordan is dependent on fuel imports for about 96% of the energy needs with a substantial impact on the county s GDP. Jordan spend more than 17.6 % of its GDP to cover the cost of meeting its energy needs with a large share focused on electricity generation. The Jordan electricity sector change during the last years. from total governmental owned market to the market where different parts in the value chain has become separated from each other with for examples 3 distribution companies and 6 generation companies. Stats owned national electric power company NEPCO role in the market is to act as a single buyer.

5 ELECTRICITY SECTOR The tariffs to the distribution companies and principal consumer are set by EMRC. The Power Purchase Agreement (PPA) between NEPCO and the generation companies governs for purchase electricity. NEPCO is responsible for purchase of fuel & gas then to provide the generation company with fuels.since the prices for buying and selling are already stipulated, NEPCO has to capture prices fluctuations for fuel in their profit and loss account (P&L). According to the old agreement between Jordan and Egypt; Jordan relied on 80% of its electricity generation on natural gas imparted from Egypt. Egyptian natural gas exports declined substantially falling by an annual average of 30% from and 20% in 2014.

6 ELECTRICITY SECTOR As result Jordan has resorted to import more expensive fuels such as HFO and LFO which raised the energy bill further to 20% of the GDP and forced NEPCO to increase substantial losses. In above described situation can lead to an enormous cash flow problem leaving NEPCO to focus on this problem instead of its care assignment of managing the purchase transmission, dispatch,control, and selling of eclectic power inside Jordan. Current priority in the sector is to reduce NEPCO losses and allow the company to recover all its costs by the end of 2017.

7 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

8 Fuel cost (Pass through) Single Buyer Model Fuel Generation Companies Renewable Projects Electrical Interconnection PPAs TCAs PPAs TCAs NEPCO (System Operator) Distribution Companies Principal Consumers Regulated Tariff (EMRC)

9 Jordan s Power System (2014/2015) Peak load-winter (1/ 2015) : Peak Load-Summer (8/2015) : Generated Energy (2014): Imported Energy (2014) : Exported Energy (2014) : Installed Capacity(2014): 3160 MW 3300 MW GWh GWh 63.7 GWh 4000 MW Total Substations Capacity (2014): Electrification Rate: 100%

10 Generation Units Merit Order 67% of Peak Load 84% of Peak Load CC Steam DE Gt-Sc

11 MW PEAKS & VALLEYS % Annual Growth High Scenario Morning Evening Minimum

12 GWh ELECTRIC ENERGY CONSUMPTION Street Lighting Water Pumping Commercial Industrial Domestic

13 ELECTRICAL ENERGY FUEL % 120% 100% 80% 60% 40% 20% 0% 3% 4% 4% 3% 1% 7% 3% 11% 5% 24% 34% 32% 49% 53% 27% 89% 32% 69% 29% 39% 35% 25% 17% 5% Imports DO (LFO) HFO NG

14 NEPCO FINANCIAL CRISIS Accumulated losses: 6.8 billion USD (up to end of April 2015) Recovery plan has been established in order for NEPCO to reach break even in the year Replacing natural gas by burning both Heavy fuel oil and Diesel oil was the main reason for the losses. Increase the consumers Tariff: 1. Household above (600 Kwh/month) 2. Agricultural sector 3. Small industries above (1000 Kwh/month)

15 NEPCO FINANCIAL CRISIS Importing Liquid Natural Gas LNG Contracting more efficient power plants Activating the energy efficiency programs Increasing the share of the Renewable Energy Resources

16 LNG PROJECT STRUCTURE

17 LNG PROJECT STRUCTURE An 160,000 m3 FSRU arrived to the LNG Terminal at Aqaba on to remain working for 10 years. The Terminal started commercially to receive LNG cargoes since 10/07/2015

18 LNG SUPPLY NEPCO ensures the supply of LNG through the followings: [ 1 ] Shell Contract A 5 years contract with SHELL to provide 18 cargoes/year. [ 2 ] Spot Market MSAs with 22 of the largest LNG companies has been executed to ensure availing any required Cargo from Spot Market as soonest. Already 5 spot cargoes has been contracted for [ 3 ] 2016/2017 Tender NEPCO issued a 2 years tender for supplying 18 cargoes/year. The preferred bidder will be announced on during Oct,2015.

19 GENERATION COMPANIES Xenel 40% GOJ CEGCO 9% 33% 13% 5% CCC QEPC (IPP2) 20% SSC Raeda ACWA SEPGCO GOJ AES Psc (IPP1) AES Levant (IPP4) Mitsui Amman Asia (IPP3) KEPCo 40% 60% 60% 35% AES Mitsubishi 80% KEPCo 5% Wartsilla

20 OIL SHALE IPP (APCO): Location: Atarat-Qatranah. Capacity: 470 MW (2*235 MW). Fuel: Oil Shale (local). Developer: ENEFIT (Eesti Energia (65%), YTL (30%), Near East (Local Company) (5%). Contractual Method: IPP, BOO. Operation Date: Project Agreements were signed on 1/10/2014. Financial Close has not been achieved yet.

21 JORDAN ENJOYS WORLD CLASS QUALITY SOLAR AND WIND ENERGY Wind speed reaching between 7.5 to 11.5 m/s in some places. Wind projects are now feasible and competitive

22 JORDAN ENJOYS WORLD CLASS QUALITY SOLAR AND WIND ENERGY High solar radiation figures of 5 7 kwh/m2 per day with about 300 sunny days per year. Jordan future Renewable Energy source is Solar Energy.

23 RENEWABLE PROJECTS Direct Proposal PV- Round I (12 Projects) Feed-in Tariff Direct Proposal PV- Round II (4 Projects) Feed-inTariff As a result, many projects are aimed at building solar power and wind power capacities in an effort to the set target of 10% of the country s primary energy mix by 2020 Direct Proposal Wind Projects (6Projects) Feed-inTariff EPC Projects owned by government 1 PV Project 1 Wind Project

24 PV PROJECTS Type Round/ Project Name Regime No. of Projects Capacity Status Round I Direct Proposal 12 Projects (9 at Ma an Development Area, 1 at Ma an, 1 at Aqaba, and 1 at Mafraq) 200 MW Agreements were signed during March,2014. All projects have achieved Financial Close. PV Projects COD s are during Round II Direct Proposal 4 Projects 200 MW Under Agreements negotiation. 2 PPA s to be signed before end of Oct Qweira EPC 1 project MW Under Construction.

25 WIND PROJECTS Type Round/ Project Name Tafilla (JWPC) Regime No. of Projec ts Direct Proposal 1 Project Capacit y Status 117 MW Commercially operated on 16 th Sep Wind Projects Fujaij (KEPCO) Direct Proposal 1 Project 89.1 MW Proposal is evaluated, agreements negotiations are going on. Round I (Green Watts, KOSPO, Xenel, and Bab Elhawa) Alhussein Wind Farm Direct Proposal 4 Projects EPC 1 Project Around 240 MW Proposals are evaluated, agreements negotiations are going on, first Project Agreement was signed 12/10/2015 with Green Watts. 66 MW The Project is under construction. Trial Operation will be started in the beginning of 2016.

26 SUCCESS STORY IN RENEWABLE ENERGY Tafila Wind Project (IPP) Tafila Financing In As Middle East s Biggest Wind Farm in Jordan Takes Shape. Jordan Wind Project Company (JWPC) runs the development of the wind farm. The JWPC is a co-development between the companies InfraMed (50 %), Masdar (31 %) and EP Global Energy (19 %).

27 SUCCESS STORY IN RENEWABLE ENERGY Tafila Wind Project (IPP) The Project consists of 38 WTG of Vestas 3.1 MW. The total capacity of the Project is 117 MW. Tafila Wind Farm is fully financed to its expected cost of $290 million. Tafila will produce about 390 GWh of electricity each year and with it displace 235,000 tons of CO2 emissions per year. COD was 16 September 2015.

28 SUCCESS STORY IN RENEWABLE ENERGY

29 RENEWABLE ENERGY PROJECTS ON MAP Bab Elhawa JSO Sunrise, FRV, Haren swiss Saudi Auger King Hussain Tafila KOSPO Jordan Wind Jordan Wind Fujaij Xenel Jordan Wind Rajif SCATECF MDA 1 Wind PV Qweira shamsuna

30 JORDAN MA AN DEVELOPMENT AREA SITE LOCATION 30

31 JORDAN MA AN DEVELOPMENT AREA SITE 31

32 RENEWABLE ENERGY PARTICIPATION IN Year THE GENERATION MIX Seasonal Convenational power RES Solar RES Wind 2,4% 2,2% Energy 95% Installed Capacity Conventional power 19,078,553 MWH RES Wind 484,762 MWH RES Solar 447,152 MWH Generation Conv. MW 100% % Convinational power MW 80% 60% 40% % Reserve peak load % 5% 5% RES Wind MW 20% RES Solar MW 0% Total Generation

33 Year 2017 Energy Seasonal 3,3% 4,0% Convinational power 20,007,898 MWH Convenational power RES Solar RES Wind 93% RES Wind 701,767 MWH RES Solar 856,816 MWH Genration Conv. MW Installed Capacity 100% 90% 220 6% 80% 70% 60% 50% 40% 30% 20% % Reserve peak load % 6% 11% Convinational power MW RES Wind MW RES Solar MW 10% 0% Total Generation

34 Year 2018 Energy Seasonal 6,6% 6,5% Convinational power 19,767,347 MWH Convenational power RES Solar RES Wind RES Wind 1,502,065 MWH % RES Solar 1,483,226 MWH Genration Conv. MW Installed Capacity 100% 90% % 80% 70% 60% % Convinational power MW 50% 40% 30% 20% 10% 0% % Reserve peak load % 14% RES Wind MW RES Solar MW Total Generation

35 Year 2019 Energy Seasonal 7,5% 6,2% Convinational power 17,151,808 MWH Convenational power RES Solar 15% Oil shale 3,626,640 MWH 1500 RES Wind Oil shale 71% RES Wind 1,792,038 MWH Genration Conv. MW RES Solar 1,483,226 MWH 100% 90% % Installed Capacity 80% Oil shale 70% 60% 50% 40% % Reserve peak load % 10% 12% Convinational power 30% 20% % RES Wind 10% 0% RES Solar Total Generation

36 GREEN CORRIDOR QAIA 132 kv Rash 132 kv Hasa 132 kv Qat 132 kv Qatranah 400kV FUJIJ 132 kv KING HUS 132 kv Ma an 400 kv MA AN 132 kv Aqaba 400 kv

37 GREEN CORRIDOR GREEN CORRIDOR 400 k.v OHTL EOD:2018 New Ma an S/S 400/132 k.v EOD:2018

38 GREEN CORRIDOR GREEN CORRIDOR Built new OHTL QAI-Qatranah (132 k.v) Reconductor : Tafilla Hasa )40 ( Hasa-Qatranah )50( Fujaih- New Ma an )50( Existing Ma an- New Ma an )10(

39 Thank You