Jordan reviews alternative energy sources
Amman, December 3, 2008
Al-Faris National Investments (Optimiza) together with international management consulting company AT Kearney have been reviewing the development of the energy sector in Jordan.
In line with the Jordanian government’s alternative energy vision, the different energy alternatives available to the country and the potential effects on the Kingdom's economic development have been discussed, said an official spokesman.
Recent studies show that Jordan’s high dependency on energy imports, the lack of primary energy sources and electricity supply is threatening the country’s wealth development, according to AT Kearney.
Similar to many other Middle Eastern countries the growing demographics and economic growth in Jordan lead to a constant increase of demand for energy and electricity. Already Jordan’s total imported energy today amounts to more than 95 per cent, with costs of such imports estimated at approximately 20 per cent of Jordan’s GDP.
During the last years, energy demand in Jordan has grown by more than five per cent per annum and electricity demand by more than seven per cent, a development that needs urgent attention, according to AT Kearney, who believes the additional generation capacity needed in the Middle East is potentially underestimated and could threaten economic growth of those countries.
Jordan’s Energy Strategy released by the Royal Commission of Energy gives insights to considerations on how to meet those future demands and the aim is to expand the market share of renewable energy from one per cent in 2007 to more than 10 per cent in 2020.
“In the field of electricity supply, the capacity expansion will be supported by the shift of the generation portfolio towards alternative energy sources such as wind, solar, nuclear energy and oil,” said chairman of the EDAMA Energy Initiative Karim Kawar.
“Key factors for the success of achieving its energy targets are a regulatory framework and funding. For example, the recently developed Renewable Energy Draft Law as well as the feed-in tariffs determined therein will have a major impact on the future role of this energy source in Jordan,” said Dr Goetz Wehberg from the Global Utility Practice of A T Kearney.
The development of Jordan’s energy portfolio is ambitious, but Jordan seems to be well prepared in terms of a clear guidance through the country’s energy strategy as well as a high level of awareness for the energy needs by decision makers. – TradeArabia News Service