National Energy Efficiency Strategy

Country / jurisdiction: Jordan · Year: 2005 · Status: In force · Level: National · Type: Voluntary

In the context of rising energy demand, expected to increase by 5.5% yearly within the decade, Jordan implemented a National Energy Strategy for 2005-2020, that since 2007 contains several renewable energy generation targets.

The share of renewable energy in Jordan total energy mix shall reach 7% by 2015 and 10% by 2020. Such a share would be met with about 600 to 1000 MW of wind energy, 300 to 600 MW of solar thermal energy, 30 to 50 MW of energy from waste.

The Plan provides investors with fiscal incentives, 100% exemption from income tax over 10 years, to encourage independent power producing projects to generate electricity on BOO and BOT basis. The plan contains several measures to boost renewable energy deployment, such as:

- Progressively remove oil and electricity price subsidies to make them cost reflexive

- Establish an energy data bank - Provide provisions of grants and soft loans for large renewable energy projects

- Eliminate or reduce sale tax and custom duties on materials and equipments contributing to energy saving, including thermal insulation

- Provide provisions of grants and soft loans for large renewable energy projects

- Create an Energy Efficiency label for local and imported appliances

- Oblige large industrial and commercial institutions to conduct energy audits.

- Promote renewable energy technologies Moreover, the industrial and commercial sectors are expected, within the Energy Efficiency section of the Strategy, to reduce energy consumption by 20%.

In parallel the strategy seeks to reduce the share of oil generated energy from 58% to 40%. The strategy suggests a package of legislative, administrative and financial tools to meet these targets and requires an investment package estimated at between USD 1.4 to 2.2 billion.

Official source: http://www.memr.gov.jo/Portals/0/energystrategy.pdf