The Government of Jordan has put great efforts for the development of the country’s overall energy sector to adapt it to changing market conditions, and in particular, the rapidly growing local demand for electricity and oil derivatives. One of the primary objectives of Jordan’s 2007-2020 Energy Strategy is to further increase private sector investment in the development of the energy sector until the year 2020. The Strategy calls for an estimated investment of US$ 13 to 17 billion from 2007 to 2020, which would be financed by the private sector across the downstream, electricity, natural gas, oil shale, and renewable energy. Implementation of the Strategy is expected to stimulate further growth in the Jordanian economy and will create a number of investment opportunities which will be structured to encourage and promote private sector participation. The Strategy aims to reduce the reliance on imported products from the current level of approximately 97%, with a goal for renewable energy meeting 10% (i.e. 600-1000 MW wind, 300-600 MW solar and 30-50 MW biomass) of electricity generation mix by 2020 and nuclear energy providing a significant portion of new electricity capacity by 2035. However, since the launch of the updated Energy Strategy in 2007 and until now, a little has been achieved on the ground. The strategy also calls for an ambitious energy saving target of 20% by 20020. This target can be realized through various energy efficiency measures addressing all energy consuming sectors in Jordan.
European Commission Contribution
The EU-Jordan technical and financial cooperation aims to support Jordan's reform and development agenda. Over 40 projects are currently underway in various sectors across the Kingdom. These projects mainly focus on supporting democratic development and human rights, good governance, regulatory reform and administrative capacity building, infrastructure development, and enhancing the independence and efficiency of the judicial system
The Renewable energy and energy efficiency Program in Jordan (ENPI/2011/022-721) is a key program which is being financed by the European Commission. The general objective of the program is to contribute to the development and implementation of effective policies which will enable Jordan reaching the renewable energy and energy efficiency goals set by the government for 2020. The program has two specific objectives:
1. To assist the government in completing the already undertaken institutional and legislative reforms, in order to create the enabling environment for public and private actors to achieve the goals of 10% energy from renewable sources and 20% of energy savings by 2020. It is also to develop appropriate regime in Jordan for enabling the introduction of right initiatives that will help infrastructure development for renewable energies.
2. To contribute to full scale implementation of activities foreseen in the government strategy, in order to induce behavioural changes in the society and to foster investments towards the in-country production of energy.