Increasing the security of energy supply is a high priority for the Government of Jordan as the energy sector is facing critical challenges due to its high reliance on imports (96% of total primary energy supply), the rising cost of crude oil and oil products (estimated at 17.6% of GDP in 2008). The demand growth for oil products is expected to exceed 3% per year, and electricity consumption is also going up (it is expected to exceed 4% growth per year).
The National Energy Strategy for 2007-2020 includes ambitious targets to increase the contribution of renewable energy sources to the national energy supply. The share of renewable energy in the total energy mix is anticipated to reach 7% by 2015 and 10% by 2020, boosted by 600 MW strong capacity of wind energy projects and 300-600 MW of solar thermal projects. Furthermore, the strategy recognises the country's great potential to reduce energy consumption via energy efficiency measures.
The newly adopted Renewable Energy and Energy Efficiency Law is a major step forward that allows the Ministry of Energy and Mineral Resources to work in closer collaboration with other specialised entities to conserve energy and increase energy efficiency in different sectors. The law also sets incentives to promote renewable energy utilisation in Jordan as well as establishing the Jordan Renewable Energy and Energy Efficiency Fund (JREEEF).
The Jordanian Government launched a gradual removal of subsidies for gasoline, diesel, fuel oil and kerosene in 2005. In February 2008, oil product prices were fully liberalised stimulating a market response on both improving energy efficiency and increasing the use of renewable energy, and more importantly, supporting a broader reform to make the overall economy more efficient and attract foreign investment. In particular, it is expected that the removal of subsidies will increase investment from the oil-producing countries in the region.
This document provides a summary of Jordan's overall energy strategy and policies, and detailed information on the policies and institutions set up to improve energy efficiency and renewable energy use in the country. This report was prepared by officials of the Jordanian Government.