Wfes day3 1110 1125 ziad sabra presentation jordan final

Renewable Energy Program and Investment in Jordan Eng. Ziad Jebril Sabra Assistant Secretary General Ministry of Energy and Mineral Resources

Jordan enjoys world class quality Solar and Wind Energy • High solar radiation figures of • Wind speeds could reach 10.0 5 – 7 kWh/m2 per day with m/s in some places. about 300 sunny days per year.

• Jordan classified as complex • PV are mature and wellterrain area, Wind projects are distributed in the country site specific,

•

Key Figures of the Jordan Electricity Sector  Total Installed Capacity: 4100 MW  Peak Load: 3300 MW Per Capita Electricity Consumption: 2235 KWh Total Electricity Generation: 17261 GWh Total Electricity Consumption : 14564 GWh Renewables Contribution to Electricity: 5%

Why Investment Security is High in Jordan (Incentives)  Clear Development Path of the Government of Jordan  Stable Political and Regulatory Frameworks  Adequate and Transparent Public Policies  Clear Financial and other Support Schemes (tax regime)  Well defined Infrastructure connections, etc.)

Provisions

(land,

grid

Jordan is at the right path A target of 10% renewable energy input into the energy mix by 2020 is set in the National Energy Strategy, mainly aiming for about 800MW of Wind and 800MW Solar.

Regulatory Framework ďƒ˜ The Renewable Energy and Energy Efficiency Law was passed as a permanent Law in April 2012. ďƒ˜ This law allows investors to identify and develop gridconnected electricity production projects through the so called unsolicited or direct proposal submission.

Regulatory Framework  A well-founded reference price list (ceiling prices) for different Renewable technologies was set by the ERC .  Net- Metering for small RE Systems (Roof Tops) with Fixed Purchase Prices for Excess Power,  Tax Incentive regime, a By-Law was issued on Tax exemptions for RE and EE systems and Equipment.

Regulatory Framework ďƒ˜ Grid Expansion and Reinforcement Plans are ongoing (Green Corridor). ďƒ˜ The Jordan Renewable Energy and Energy Efficiency Fund is established, which aims to channel financial resources to that end.

Renewable Energy Development Schemes About 1350 MW of Wind and Solar PV projects are currently under development in Jordan, 500MW currently operational.

We follow a policy of 4-tracks-approach to develop renewables:    

Direct Proposals schemes Competitive Bidding process EPC Turn-Key projects Small Scale RE Schemes (Net Metering)

Example: Direct Proposal Submission (DPS) Process – Phases 1&2 • About 1000 MW of Wind and Solar PV projects are currently under development in Jordan.

Phase 1 PV, CSP, wind

Phase 2 PV

4 x 50 MW

10 – 100 MW / plant

…DPS Phase 1 – Paving the Way

Total capacity: – > 200 MW PV – 75 MW Concentrating Solar Power CSP – > 400 MW wind power Jordan has become one of the most vibrant RE markets in the EUMENA region

!DPS Phase 2 – Overwhelming response 84 Expressions of Interest 43 “shortlisted” bidders 34 full technical/financial proposals received 24 bidders invited for opening of financial proposals Currently: Negotiations with very small group of bidders/ developers Will lead to 4 PV plants, 50 MW each: 200 MW

Tarif

Ceiling: 0.1 JD/kWh (14 USc/kWh) Lowest tarifs ofered 6.1 – 6.5 – 6.9 – 7.7 USc/kWh

DPS Phase 2 – Our Power Purchase Agreement MEMR wants a uniform “one PPA fits all” document.

With NEPCO (National Electricity Power Company) we have an experienced and professional player at our side

We learn: We transferred experiences from Phase 1 to Phase 2

DPS Phase 2 – The Land Issue Choice of land is left to the developer.

However, Government of Jordan allows Wind and PV plants on its own land – via LLA. Land lease procedures are transparent, simple and quick – allowing smooth project implementation MDC land has been perceived very positively by developers

Renewable Energy Projects • About 1350 MW of Wind and Solar PV projects are currently under development in Jordan as follows: 117 MW / Tafila Wind / Direct Proposal/ Operational

10 MW / Philadilphia Solar PV/ Direct Proposal/ Operational

90 MW / Al Fujaij Wind / Direct Proposal/ Under Construction

200 MW / Solar PV/ Round I Operational

330 MW / Wind / Round I/ Under Financial Close

1335 MW

200 MW / Solar PV/ Round II/ Under Financial Close

80 MW / Ma’an Wind / GCC Grant/ Operational

103 MW/ Qweira Solar PV/GCC Grant/ Under Construction

200 MW/ Masdar/ Solar PV/ Governmental Initiative Under FC

5 MW/ Azraq Solar PV/ Spanish Grant/ Operational

Tafila Wind Project (JWPC)

Tafila Wind Project (JWPC)

Philadelphia 10 MW Solar PV Project at Mafraq

Azraq Solar PV Projects

Ma’an Wind Project

New Investment Opportunity 3rd Round of Direct Proposals (400 MW): Type

Capacity

Location

Projects Details

- PV Solar

200MW (50MW each)

Maan

•

-Wind

100 (50 MW each)

South Jordan

•

Investment announcement for EOI on 13 Dec 2016, submission date 15 February 2017 To be operational by 2019/2020

Small Scale RE Projects  Small scale consumers has been given the opportunity to generate their own electricity and sell the extra (if any) to the distribution utilities at a fixed tariff.  This covers consumers from different sectors like residential, industrial, commercial, agricultural…etc.  More than 2000 Applications received so far by DisCos.  Currently about 50 MW installed capacity  (rooftop systems)  Another 30 MW Approved applications.  Wheeling Concept is under consideration for large consumers (Hotels, Universities,….

Motivation/Benefits of Renewable Energy Projects  Securing energy supply  Establishing new project companies to run and operate RE projects.  More employment in RE sector (remote regions)  Establishing new RE industries especially PV solar  Encouraging investors to maximize the local content in their projects (enjoy more incentives)  More development in the less developed areas in Jordan in terms of socio-economic and employment aspects  Balanced risk allocation

Template Contractual Documents (Transparent Process – Minimum Risk- Less cost)

 Instructions for developing RE projects (IRPP)  Prequalification requirements  Power Purchase Agreement (PPA)  Land Lease Agreement  Government Guarantee Agreement

Conclusion  Jordan has laid down the necessary Policy and Regulatory frameworks for Renewable Energy, and is ready now to attract and receive commercial investments.  Template contractual documents (PPAs) and Instructions for developing RE projects do exist.  Grid reinforcement (Green Corridor) is undergoing by NEPCO in order to install more RE Capacities.  Jordan is now a leading country of Renewable Energy in the MENA Region.

Thank You