Renewable Energy Policies and Regulation in Jordan Electricity Sector

Transcription

1 هيئة تنظيم قطاع الطاقة والمعادن Energy & Minerals Regulatory Commission (EMRC) Renewable Energy Policies and Regulation in Jordan Electricity Sector Presented by: Eng. Wijdan AlRabadi Commissioner Energy and Minerals Regulatory Commission (EMRC) Phone: Ext.213 Fax: P. O. Box: 1865 Amman, Jordan rabadiw@erc.gov.jo

2 Energy Situation The Main Challenges of Energy Sector in Jordan Jordan is facing a real challenge in securing of energy supply due to: Almost no indigenous energy resources Highly dependency on imported energy (97% import in 2012) High cost (The energy imports accounted for 18% of GDP in 2012) High growth of primary energy demand. Features 97% 3% Domestic Resources Imported Energy Jordan is considered as a hub and transit country and can play a major role linking oil, gas and electricity network among the region. The country has a huge potential of : Renewable Energy Utilization (Wind, Solar) Energy Resources (Oil shale, Uranium) In regard of oil and gas, Jordan has not been explored yet

3 Energy Situation Energy Demand Jordan witnesses high growth of energy demand Period Electricity Demand Growth (%) Primary Energy Demand Growth (%) ( ) Energy Strategy ( ) MAIN GOALS : Diversifying the energy resources Increasing the share of local resources in the energy mix. Reducing the dependency on imported oil Enhancing environment protection This will be achieved through : Maximizing the utilization of domestic resources (Oil shale, Natural gas, etc.) Expanding the development of Renewable Energy projects Generating electricity from nuclear energy

4 General Electricity Law (GEL) Nº Separation of Policymaking, Regulation and Industry Operations Ministry of Energy and Mineral Resources (MEMR) Policy Set and prepare the general policies of the sector Cooperation with other countries Promote the use of renewable energy for generation Recommend Council of Ministers to advance to a more competitive electricity market Energy & Mineral Regulatory Commission (EMRC) Regulation Generation Transmission Industry Operation Distribution/Retail 4

5 Energy and Minerals Regulatory Commission (EMRC) Energy and Minerals Regulatory Commission (EMRC) A governmental body that possess a legal personality with financial and administrative independence and is considered the legal successor of the Electricity Regulatory Commission (ERC) and the Jordan Nuclear Regulatory Commission (JNRC) and the Natural Resources Authority (NRA) in relation to its regulatory tasks according to law No. (17) for the year ( 2014 ) regarding the restructuring of institutions and governmental organizations. Electricity Renewable Energy Nuclear & Radiation Regulatory Sectors Mining Oil Shale Gas EMRC Plays the main role in the regulatory framework related to Jordan Electricity Sector through many duties & responsibilities: Issue Licenses: Generation, Transmission, Distribution, System operation and Bulk Supply. Issue Sector Regulation (Codes, instructions, directives). Determine Electricity Tariffs and connection charges. Participate in Setting the technical and environmental standards. Recommendations to advance for competitive electricity market. 5

6 Hierarchy of the Regulatory Framework Electricity Sector Electricity Law REEE Law Government (MEMR) Responsibility EMRC Responsibility Licensees Responsibility By Laws Codes Licenses Tariff Methodologies Directives & Orders Standard Agreements Bilateral Agreements Licensees

7 33, 11, 0.4 Kv CEGCO CURRENT STRUCTURE OF ELECTRICITY SECTOR SEPCO G Em beded Gen. 3.5 MW Bio Gas PP G 400,132 Kv G G G G 1PP1 G IPP2 Bulk Supply TNSP SO N EPCO 132/33 Kv JEPCO IDECO EDCO S&M Consumers G IPP3 IP P4 G Principle Consumers G 10 MW PV 117 MW Wind

8 Renewable Energy Regulatory Framework RE & EE Law N⁰13, 2012 The Law was issued in April 2012 and has been amended 2014 (1)- Tax Exemptions By-law (2)- Direct Proposal By-law (3)- RE & EE Fund By-law (1)- Reference Price List That includes the indicative prices for each type of Renewable Source Tech. (2)- Sale of Electrical Energy generated from Small RE Systems (Net Metering Roof Tops) (3)- Cost of Connecting RE Facility to Distribution Grid (4)- Electric Power Wheeling Directives Cabinet EMRC (1)- Generation License Procedures (2)- Standard Generation License (Dis. / Trans.) (3)- Standard Grid Connection Agreement (4)- Grid /Distribution Codes 8

9 Renewable Energy Development Jordan is currently engaged with a Fivetrack approach to develop RE Projects: schemes 1. Direct Proposals 2. Competitive Bidding 3. EPC Turn-Key 4. Energy Net-Metering 5. Electrical Power Wheeling Target A target of 10% renewable energy input into the energy mix by 2020 is set in the National Energy Strategy, mainly aiming for about 1000MW of Wind and 600MW Solar. RE licences progress Technology MW No. of Licenses Wind PV Total A well-founded reference price list (ceiling prices) for different Renewable technologies Set by EMRC RE source Tariff JOD FILS/ kwh Tariff US $ C / kwh Wind Energy Thermal Solar Energy (CSP) PV Bio mass Bio gas

10 Direct Proposals Approach Round 1: (12) Solar PV proposals were received in March 2013 with total capacity of (200) MW. PPAs signed in March 2014, financial close finished by the end of May Tafila wind project of (117) MW capacity is currently operational (Sep. 2015) Connected with NEPCO Solar PV project of (10) MW capacity in Mafraq area is currently operational (Oct. 2015) Connected with IDECO. Wind Proposals of this round with total capacity of about (230) MW, in addition to a proposal from the first ranked bidder for the (89) MW IPP Wind Project at Fujei, have been received by the end of September PPA (80 MW) have been signed others to be signed very soon. Tafila Wind Project (JWPC) Mafraq PV Project (ALBADIA) Round 2: Launched in August 2013, (83) Applications received on14 November 2013 for PV projects (50 MW capacity each), out of them (45) MOUs have been signed. (34) Solar PV proposals were received in February 2015, (24) of them technically qualified in May PPAs have been signed with the top 4 ranked bidders where (200) MW is allocated for this round.

11 Competitive Bidding Approach Several projects are under investigation by MEMR to be tendered on public lands on due time, pending on grid capacity availability. EPC Turn-Key approach o (66) MW Wind project at Maan, expanded to (80) MW, funded through a Grant from the Kuwaiti Fund (USD 150 million), and awarded to a Spanish contractor (Elecnor), is currently under construction to be operational by Mid o (65-100MW) Solar PV Project at Quweira/Aqaba, funded through a Grant from Abu Dhabi Fund (USD 150 million) is currently under re-bidding process. o Two Solar PV Projects with total capacity of (5.2) MW have finished construction at Azraq, in cooperation with the Spanish Government, and are currently operational. Azraq 5.2 MW Solar PV Project

12 Renewable Energy Energy Net-Metering Applications Acc. Net-Metering Operated Systems at the end of Nov MW 1285 Meters Net-Metering Expected at end of MW Wheeling Scheme Expected at Mid of MW

13 Ongoing Grid Reinforcement Plans by NEPCO Green Corridor-south region Between Aqaba and Qatranah With PH2 of Green corridor (2020) 1500 MW With PH1 of Green corridor (2018) 650 MW MW

14 Are there energy investment policies specific to rural areas at national and/or international level?. 1. The Electrification rural areas Program. 2. subsidy the electric tariff 3. Installing PV systems for heating and air conditioning in coldest areas. 4. Off grid renewable technologies provide a sustainable and cost-effective alternative to the diesel generators that would be typically deployed in such areas. 5. Renewable technologies can also help to displace other unsustainable energy sources.

15 subsidies for renewable appear as the best-suited instrument to promote the introduction of renewable. Price-based subsidisation: the feed-in tariff (FIT). FITs Quantity-based subsidisation: the tradable green certificate scheme (TGC, also known by its US name»renewable portfolio standard«or RPS). Using a TGC, Creating tax incentives. Tax reductions can promote the introduction of renewable energy in manifold ways

16 How can Governments of Arab region intervene to improve RE technologies financing situation in rural areas?. - Mobilizing local financing, aid and grants; foreign direct investments; carbon financing, Global Environment Facility GEF, etc for the renewable energy sector. - Local sources of funding, - use of pensions funds to leverage local bank financing for new projects, - use of emerging local bond markets, - local private sector interest - integrating renewable energy into economic partnerships with Arab region

17 What tools and measures can governments use to make a difference There are several measures can government use to make difference by reporting the number of clients benefit from using Re technologies, evaluation criteria etc.

18 In Conclusion. The Decision makers, taking into account their national circumstances, are encouraged to: (a) Develop and implement appropriate national, regional and international policies and measures to create an enabling environment for the development, utilization and distribution of renewable energy sources in rural areas; (b) Develop domestic programmes to increase the contribution of renewable energies to total energy consumption; (c) Encourage the role of the private sector in the development and utilization of Re technologies, through the provision of appropriate incentives and regulation; (d) Strengthen research, development, demonstration and institutional capacities in the field of RE utilization.

19 (e) Promote the utilization of renewable natural resources, such as solar, wind, biomass, etc to meet part of the energy needs for sustainable development; (f) Strengthen information networks, compilation and dissemination systems and public awareness programmes on renewable energy sources and technologies; (g) Develop and use indigenous sources of renewable energy, where appropriate; (h) Develop and implement measures to make renewable energy technologies more affordable; (i) Strengthen financial support to developing countries for the promotion of renewable energy.

20 Thank you 20