Jordan expands EU backed investment in renewable energy sector
Jordan recently ratified the Paris Agreement and is increasingly investing in renewable energy sources. The country has historically imported around 97% of its energy needs. To unlock the country’s potential, the government initiated in 2015 a number of solar and wind agreements which should be operational by 2018. Like in many other emerging markets, the business case for commercial and industrial electricity consumers to adopt renewable energy more widely, has become extremely compelling. The combination of high solar yields, plummeting solar plant costs and high electricity prices have also created the perfect conditions for the rapid expansion of distributed renewable energy generation.
Jordan’s effort to extend the use of sustainable and innovative renewable energy technology has recently been boosted. Two projects in the water supply and the solid waste management sectors have obtained grants and technical cooperation from the European Union. This was financed under the EU's €90 million renewable energy and energy efficiency programme for Jordan. The anticipated improvements in local municipal services will strengthen the country’s ability to cope with the increased population, which now includes 1.3 million refugees from Syria. The European Bank for Reconstruction and Development (EBRD) will manage the grant funds and supervise the implementation of the projects.
The first project aims to construct a photovoltaic system to power three to five water pumping stations across the country. The EU is providing a €30 million grant to support this initiative. Under the second project, a waste-to-energy plant will be built at the Al-Shaer solid waste transfer station. This will benefit from an EBRD loan of up to €7.5 million and a grant from the EU Delegation in Jordan of a further €5 million. The EBRD is also expected to mobilise an additional €2.5 million in grants for the investments as well as additional donor funds for technical assistance to support the project implementation phase.