The status and potential of renewable energy development in Jordan: exploring challenges and opportunities

Abstract

The energy sector poses one of the largest challenges for the Jordanian economy because it directly influences economic growth. The country’s high dependence on imported intensive fossil-fuel sources (93% in 2021) has overburdened the national budget. The government has therefore defined a set of priorities and actions based on greater utilization of domestic resources, including renewable energy. The capacity of renewable energy systems feeding into the power grid in Jordan reached 2,445 megawatts (MW) in 2021, approximately 20% of the national electricity mix. This article investigates the capacity of renewable energy in Jordan and analyzes the present state of its renewable energy industry, which can aid decision makers and investors in developing plans for future projects. The country is taking steps to address several obstacles facing the energy sector including upgrading the grid, exporting excess electricity generated from renewables to international markets, and developing new policies and regulations for renewable energy growth. Jordan has significant potential to succeed in scaling up its use of renewables, particularly in electricity generation, which could reduce energy prices for consumers and improve energy security. The article also discusses opportunities in the renewable energy industry in Jordan and outlines next steps including reducing domestic greenhouse-gas emissions.

Keywords:

• Energy consumption
• energy security
• renewable energy resources
• wind energy
• solar energy
• Jordan

Introduction

The demand for energy consumption is constantly rising across the globe, especially in developing countries because of increasing economic activities. According to the International Energy Outlook (USEIA 2021), the world’s energy consumption will grow by 50% between 2020 and 2050. Oil and natural gas prices have recently been fluctuating for many reasons, including the COVID-19 pandemic and the Russian-Ukrainian War, thus increasing pressure on the international economy (IEA 2022; Le et al. 2021). Growing environmental concern about the seriousness of climate change has worsened the situation. Therefore, most countries have prioritized efforts to find alternative clean energy sources. A recent report from the Renewable Energy Policy Network for the 21st Century (REN21 2022) observes that the share of renewables in global electricity generation was nearly 28.3% in the first quarter (Q1) of 2021 compared to 26% in Q1 of 2019. The reasons behind the growth in renewables are the high cost of coal and natural gas and the availability of solar and wind-energy technology at declining prices. Nonetheless, coal and natural gas still produce approximately 60% of the global electricity supply (IEA 2020). Renewables demand is also expected to expand since these sources have generally low operating costs but the shift to renewables for electricity generation requires massive investments in new transmission technology (IEA 2020).

In the context of global renewable energy usage, Zhao et al. (2022) demonstrated that heightened renewable energy consumption can accelerate global energy conservation and emissions reduction. The study’s findings also substantiated that using renewable energy can significantly mitigate energy poverty on an international scale, particularly in European nations, by enhancing energy efficiency. Radmehr et al. (2021) concluded that renewable energy consumption and economic growth have a solid unidirectional connection. Consistent with this research, most European countries have designed corresponding environmental and energy policies to fulfill the European Union’s (EU) economic development and sustainability targets. Furthermore, according to the IEA (2020), COVID-19 reduced overall global energy demand in the short term but has positively affected the development and utilization of renewable energy. Furthermore, there are international efforts to confront climate change and many governments have created policies and instituted other measures to develop the renewable energy industry. These initiatives have contributed to acceleration of a transition of the energy infrastructure (Gielen 2019).

Many countries have also embraced the use of renewable energy as a response to energy-security concerns and to discontinue reliance on fossil fuels. For instance, some analysts predict that biogas will become the lion’s share of the energy mix in Indonesia over the next couple of years (Situmeang, Mazancová, and Roubík 2022). The use of geothermal energy has rapidly increased with the growing prevalence of ground-source heat pumps in Thailand, Malaysia, Germany, and Singapore (Ratchawang 2022; Luo 2015). Renewable sources are responsible for 45% of Turkey’s energy-producing capacity with hydropower having the largest share with 55.7% of the total renewable generation capacity (Erdin and Ozkaya 2019).

Overall global energy demand recovered following the pandemic-induced drop in 2020 but was again disrupted by the Russian-Ukrainian War that began in March 2022 (IEA 2022). Besides the massive damage to the energy sector in Ukraine, military actions have had broader implications for energy that will persist for many years. Russia was the largest exporter of fossil fuels and an essential supplier to Europe, and the relationship has exposed a major European strategic weakness. The war is leading to continued disturbance, inflationary pressures, and decelerating economic growth in global energy markets. More specifically, energy prices increased sharply during the early months of the war, particularly for natural gas in European markets. By contrast, renewables have continued to grow (IEA 2022). Many governments, including the United States and the EU, responded quickly, for example, by adopting new policies that led to a substantial upswing in investments directed toward sustainable energy and enhancing energy efficiency.

In the last decade, considerable advances have also been made in renewable energy applications in some countries of the Middle East. Population growth, war, and economic insecurity are crucial issues throughout the region and directly impact the renewable energy industry. The Middle East has a high potential for renewable energy based on solar and wind conditions and tidal movements (Bahrampour et al. 2020). While the region remains an important center for oil production, further extraction will cause the depletion of these resources, creating a severe crisis (IEA 2023). There is strong reason to believe that increased renewable resource usage can contribute to political and economic stability of the Middle East (Hamid et al. 2016). This is particularly relevant because the Middle East and North Africa (MENA) region have a population of 578 million people and an average economic growth rate of 2.5%. A growing population, rising demand for cooling, and continued industrial expansion are all important drivers of electricity demand (IEA 2023). Indeed, the use of electricity in the region rose by approximately 4% in 2021. According to an influential electricity-market report (IEA 2022), electricity consumption was estimated to grow by 2.6% in 2022. By contrast, one of the principal factors of pollution in the region is power generation. Under such circumstances, many intergovernmental organizations consider renewable energy applications to be an acceptable solution for eco-friendly power generation (REN21 2022; IEA 2022; Radmehr, Henneberry, and Shayanmehr 2021).

According to the Friedrich-Ebert-Stiftung (FES) (Komendantova 2022), Jordan ranks third among countries in the Arab world in renewable energy capacity to meet domestic needs. Moreover, the Arab Future Energy Index Report (AFEX) issued by the Regional Center for Renewable Energy and Energy Efficiency (RCREEE 2022) ranked all countries in the region in terms of enabling renewable energy and reported that Jordan had the highest share of renewable energy contribution of all Arab countries in 2021, excluding hydropower (Dadashi, Mahmoudi, and Rashidi 2022). AFEX has further indicated that Jordan is one of the best counties in the region to create a favorable environment for renewable energy and energy-efficiency investments. According to Regulatory Indicators for Sustainable Energy (RISE), the United Arab Emirates, Jordan, and Tunisia were the highest-ranking countries in the MENA region in 2017 in terms of emerging as leaders in sustainable energy, with strong policies to support energy access, renewables, and energy efficiency.

Renewables are becoming increasingly crucial in Jordan over time. Despite rapid growth in recent years, renewable energy-use intensity in the country is still relatively low compared to the advanced economies (IRENA 2021). Jordan has abundant renewable resources that can be employed to improve energy security and reduce energy costs to consumers. In addition, growth of this sector is crucial to protecting the natural environment by reducing greenhouse-gas emissions (GHGs). It is essential to develop the country’s renewable energy capacity by considering the latest trends in the energy sectors, such as use of concentrated solar technology (IRENA 2021; IRENA and ESCWA 2018).

Jordan lacks fossil-fuel reserves and, as a result, most of the country’s energy needs have been met by imported oil and natural gas, representing 93% of the national energy supply in 2021 (MEMR 2021). The imported energy needs were approximately 10% of the country’s gross domestic product (GDP) in 2019 meaning that imported energy is a considerable cost for the economy (IRENA 2021). Today, the electricity-generation sector represents approximately 20% of public debt issued by the National Electric Power Company (NEPCO), about US$7.18 billion (IFC and MIGA 2021). By contrast, total energy consumption increased by 22% and electricity use by 14% between 2014 and 2018 due to over 1.4 million refugees, exacerbating the situation (Rizkalla and Segal 2018). According to a NEPCO report (NEPCO 2023), electricity consumption was consistently rising, with an increase of 3.7% and 5.7% observed in 2021 and 2022, respectively.

Jordan can overcome its energy challenges by diversifying the country’s energy mix and boosting renewables investment (IRENA 2021). Renewables can also strengthen long-term economic and industrial development without putting extra strain on public finance (Hickey, Malkawi, and Khalil 2021; Adom et al. 2021). To date, the Jordanian government has succeeded in increasing the share of energy generation from renewable energy sources, reaching 2,526 megawatts (MW) in 2022, representing 29% of the overall electricity mix, compared to about 26% in 2021 (IRENA and ILO 2022; IRENA and ESCWA 2018; Kiwan and Al-Gharibeh 2020). In conjunction with these developments, Jordan is well underway toward developing a domestic renewable energy industry and succeeded between 2014 and 2020 in attracting investment through financial incentives, tax reductions, and customs exemptions. In addition, the country has obtained generous technical and financial assistance from foreign governments and international agencies to complete several critical projects (Abu-Rumman et al. 2020). Due to its political stability and well-developed regulatory and legal frameworks, many large-scale renewable energy projects have been successfully executed. This remarkable growth gives Jordan an advantage in attracting further renewable energy investment compared to other counties in the region.

Over the past decade, considerable research has been dedicated to renewable energy implementation and development in Jordan and the activities that can contribute to a clean energy transition. Abu-Rumman et al. (2020) investigated the energy situation and the success of clean energy programs in the country. The authors indicated that government policy, financial incentives, and tax exemption promoted growth of this energy sector. Alrwashdeh (2018) carried out an energy-sources assessment in Jordan, indicating how the energy situation in the country could be enhanced by increasing renewable energy investment (Alrwashdeh, Alsaraireh, and Saraireh 2018). Hamed and Bressler (2019) investigated energy demand in Jordan and the relationship between renewable energy sources and their supply-security dimensions. Alrwashdeh (2018) provided wind-distribution maps and indicated wind farms for all 12 Jordanian governorates (historical regions) and Azzuni et al (2020) described the country’s photovoltaic (PV) projects. However, the literature also shows that no recent study has provided a summary of renewable energy projects in Jordan and investigated progress in the renewable energy field in the last decade. Furthermore, there is no clear investor guide which is essential to define the best opportunities and to enable energy technologies suited to large on/off-grid applications in various Jordanian governorates. This is necessary information for Jordan to determine its national priorities, especially in investment in renewable energy projects.

This article presents qualitative findings from various sources, including research studies, government data and statistics, and reports by international organizations and donors, to analyze Jordan’s current renewable energy situation. We conducted a desk-based review to identify relevant strategies and policies, as well as to gather suggestions from donors and international organizations on how to enhance investment plans in the country’s renewable energy fields. There is a mismatch in the available published data from various sources and we recorded all the renewable energy projects to demonstrate the total renewables capacity and to discuss their impact on fulfilling electricity demand. Finally, this article provides practical suggestions and investment options. However, due to the scarcity of technical papers that offer in-depth investigation of different renewable energy technologies in Jordan, our research is limited to providing comprehensive technical recommendations regarding the different renewable energy technologies in the country.

We also need to affirm that renewables investment growth cannot be examined without considering the impact of GHG emissions on the energy sector. By doing so, decision makers and investors can plan for future investments while considering the available opportunities.

Renewable energy sources in Jordan

This section describes the renewable energy sources in Jordan and how the country is employing them to meet energy demand. We aim to answer the overarching question: How has Jordan moved toward developing renewable energy usage in different sectors? As a result, the focus will be on defining the key challenges and opportunities for expanding the use of renewable energy and on examining the national policies and strategies that have successfully enabled Jordan to make significant strides in renewable energy implementation and development in the last decade. We discuss the capacity of renewable energy projects to analyze the present state of the renewable energy industry in the country.

Jordan’s renewable energy profile

Jordan covers an area of 89,342 kilometers (km²), of which approximately 75% is considered dry land, and has a current population of 11.2 million. The country is situated in the subtropical zone above the Tropic of Cancer at a latitude of 30°35′ north and a longitude of 36°14′ east (Burdon 1959). The climate varies between typical Mediterranean and arid desert, with an average temperature of 17.2 Celsius (°C) in Amman, the Jordanian capital (Weather Online 2020). The country is located in the global sunbelt, which receives high solar radiation on its horizontal surface. Jordan has approximately 316 days of sunshine annually and the sun’s elevation angle rises to 83 degrees in the summer, resulting in a direct solar radiation intensity of between 5 and 7 (kilowatt-hours per square meter (kWh/m²). The annual daily average of global solar irradiance on a horizontal surface is approximately 5.6 kilowatt-hours per square meter per day (kWh/m²/day), and the total irradiance annually ranges between 1800 and 2700 kWh/m², with the maximum occurring in June with a value of 7.75 kWh/m²/day, as illustrated in Figure 1 (Alrwashdeh 2022).

Figure 1. (a) Annual solar radiation map of Jordan, (b) average wind-speed map of Jordan, and (c) solar irradiation on the horizontal plane and speed at the height of 10 meters for governorates Ma’an, Tafilah, and Aqaba. Sources: Alrwashdeh (2022), Hickey, Malkawi, and Khalil (2021), and Adom et al. (2021).

Jordan’s consistently moderate temperature and clear air throughout the year, coupled with wind speeds that typically range between 7 and 11 meters per second (m/s), also make it an ideal location for wind turbines. According to the Ministry of Energy and Mineral Resources (MEMR 2020), approximately 16% of the country’s entire landmass is suitable for wind-energy generation, with a total potential of 3.6 gigawatts (GW). The southern governorates of Ma’an, Tafilah, and Aqaba have the highest potential for wind and solar energy investment, as shown in Figure 1 (MEMR 2020; Alrwashdeh 2022; GWA 2022; Shatnawi, Abu-Qdais, and Abu Qdais 2021). Ma’an and Aqaba, in particular, have the highest direct normal radiation, averaging 7300 (watt-hours per square meter per day (Wh/m²/day), compared to other governorates (Alrwashdeh 2018; Alrwashdeh, Alsaraireh, and Saraireh 2018). By contrast, the strategic location of Jordan in the Middle East as a connection between Asia, Africa, and Europe enables the country to play a leading role in linking electricity networks and importing and/or exporting energy to international energy markets.

Jordan lacks large water bodies or waterfalls suitable for constructing hydropower stations except for the Gulf of Aqaba and the area of the Red and Dead Seas (Damoom et al. 2019; Abu-Rumman et al. 2020). Geothermal wells are available across Jordan, and utilizing these underground reservoirs for heating and cooling can decrease the cost of conventional energy. Although hot mineral water can be found in the Dead Sea rift valley, it only provides low temperatures (below 100 °C), which cannot be used to generate electricity (IRENA 2021).

Renewable energy projects

Solar energy projects

Jordan has made significant efforts to implement various solar PV projects since 2015. Table 1 lists the most notable installations in the country, including project capacity and geographic location. Most of these initiatives are direct power purchase agreement (PPAs) proposals signed between 2015 and 2018 and shared between the Ma’an Development Area, the King Hussein Bin Talal Development Area\Mafraq, and other investors in Aqaba and Amman. In 2020, a solar energy project was put into operation with an installed capacity of 200 MW and following the opening of this facility the total installed capacity of solar energy in Jordan reached 1,831 MW in 2021, representing 75% of the total renewable energy capacity (NEPCO 2021, 2022; MoEnv 2020). Three primary tracks for implementing solar power projects are apparent in Table 1: direct proposal scheme (PPAs), (2) distributed small-scale renewable energy schemes (net metering), and (3) power-energy wheeling. These projects were mainly supported by the public budget, donors, partners, and investments from foreign entities.

Table 1. Summary of solar energy projects in Jordan.

Project	Investor	Generation	Governorate/region	Generation capacity (MWac)	Operation dDate
Shams Ma’an Power Generation	Shams Ma’an Company	PPAs	Ma’an	52.5	2016
Sunrise 50 MW Photovoltaic Power Plant	ACWA Power /Sunrise Solar Energy PSC	PPAs	Mafraq	51	2018
Quweira Solar Power Plant	Jordanian Government funded by the Abu Dhabi Fund for Development	Governmental Partner	Aqaba/Quweira	89	2018
Mafraq Development Project	Fotowatio Renewable Ventures (FRV)	PPAs	Mafraq	50	2018
FRV Solar Project	FRV and Hareon Swiss Holding	PPAs	Mafraq	50	2018
Solar Energy Project	Domestic Water and Energy Company	PPAs	Amman	51	2018
Al-Safawi Project	70% Fotowatio Renewable Ventures (FRV), and 30% Arabia Trading & Consulting Company LTD (ATC)	PPAs	Mafraq	51	2019
Al-Risha PV Project	ACWA Power/Risha for Solar Power Projects PSC	PPAs	Mafraq	50	2019
East Amman PV project	AES Jordan Solar B.V. and Mitsui & Company	PPAs	Amman/Al Madouna	40	2019
AM Solar Power Plant	AM Solar	PPAs	Amman	40	2019
Baynouna Project (MASDR)	Masdar	PPAs	Amman/Mwaqar	200	2020
South Amman PV Plant	Jordanian Government Funded by KfW Development Bank	Wheeling	Amman	40	2020
Al-Husainiyah Power Generation	Philadelphia Solar	PPAs	Maan/Al-Husainiyah	50	2021
Solar Energy Project Madaba	Invest Bank Wheeling Project	Wheeling	Madaba	40	2022
Solar Energy Project WAJ	WAJ	Wheeling	Alzarqa	50	2022
Others (less than 40 MW)		PPAs, net metering, and wheeling		713

The Jordanian government has implemented measures to promote the use of solar energy for water heating in various institutions such as schools, nursing homes, and commercial enterprises. Furthermore, these projects have included efforts to expand solar energy usage through awareness campaigns and energy audits (Hamed and Bressler 2019). Jordan considers solar energy a prime candidate that has an essential role in meeting energy needs from alternative sources, as evidenced by the increasing contribution of solar energy toward the country’s energy production. The use of solar power in residential and medium-sized enterprises has experienced significant growth, as the number of PV systems connected to the grid increased from 9,603 systems in 2018 to 24,157 systems at the end of 2020. In 2020, approximately 9,018 systems were added to the grid, accounting for about 37% of all systems installed since 2015 (MEMR 2020). MEMR (2020) has signed numerous agreements with financial institutions such as commercial banks and local associations (cooperative and charitable) to support the installation of residential solar water-heater systems and solar PV systems, with support covering 30% of the cost of these systems. As a result, the program successfully installed 500 water-heater systems and 1,888 solar PV systems in 2020 (Bahrampour et al. 2020; NEPCO 2021).

Solar water-heating systems (SWHS) have been widely adopted in Jordan with approximately 14% of households installing them since 2015 (Dehghan et al. 2021). The total number of SWHSs reached 16,000 systems at the end of 2018, increasing to 24,000 and 30,000 systems in 2020 and 2021, respectively, reflecting an annual average growth rate of 20%. The market growth of solar water heaters is attributed to the financing programs that have stimulated the sector. For instance, a financing program sponsored by the Jordan Renewable Energy and Energy Efficiency Fund (JREEEF) supported the installation of 2,200 and 3,000 solar water heaters in 2019 and 2020, respectively. The market for solar water heaters was expected to grow even further but the rate has been limited by inadequate enforcement of regulations that make SWHS installation compulsory for residential apartments and offices above a specific size (IRENA 2021).

Although electricity supply has been provided to almost the entire population, off-grid renewable energy systems (i.e., stand-alone systems) are being employed in various regions in Jordan such as villages, rural areas, telecommunication stations, border points, and desert camps (Hamed and Bressler 2019; NEPCO 2020). In these cases, utilizing stand-alone PV system solutions can be both feasible and cost-effective for providing electricity services. For example, through the EU-funded Renewable Energy and Energy Efficiency Program approximately 214 solar pumps were installed in the Jordan Valley and 106 in the Highlands as a part of renewables adoption across the agriculture and water sectors (IRENA 2021), with a maximum generation capacity from these systems exceeding 1,000 kilowatts (kW). Moreover, the first stand-alone project of 9 MW (zero feed-in) was recently approved. These systems require authorization from the distribution company and are subject to a forthcoming regulation by the Energy and Minerals Regulatory Commission (EMRC) (MEMR 2020; IRENA 2021).

The decreasing cost of concentrated solar power (CSP) over the past five years has rendered it an attractive alternative for Jordan’s industrial sector. The Jordan Green Growth National Action Plans (GG-NAP) (MoEnv 2020) addressed the required policy and research and development-related activities to employ CSP technology in industrial applications. The private sector and civil society institutions are key partners with the Jordanian government in adopting CSP technology. One of the energy measures considered to achieve the updated submission of Jordan’s first nationally determined contribution strategy (NDC) is the introduction of concentrated solar power systems of 100 MW and 300 MW (MoEnv 2021). Rahoma and Obeidat (2021) investigated the best renewable techniques available in Jordan and concluded that CSP is the second option after PV utility plants. Therefore, implementing CSP plants in the southern part of the country is likely to significantly enhance Jordan’s economy and reduce its dependence on imported oil (Dadashi, Mahmoudi, and Rashidi 2022).

According to the EMRC report (MEMR 2021), there are approximately 506 registered installation companies in Jordan, with 20 firms actively participating in the renewables market. Additionally, nine energy audit-service providers are licensed to operate in the country. This has intensified competition in the renewables industry, benefiting consumers and businesses.

Wind-energy farms

The use of wind turbines has become crucial in ensuring the sustainability and durability of the renewable energy sector. Jordan has made significant progress in this area by investing in turbine projects. The country began implementing wind-farm facilities in 2014, with a small-scale generating capacity of around 1.4 MW. By 2016, four wind-power stations—Ibrahimya, Hofa, Ma’an, and Tafilah—had been established and were expected to increase power generation in Jordan by 4%, as indicated in Table 2. In early 2020, two wind-energy farms were put into operation with an installed capacity of 145 MW and completing an agreement that had been signed in 2016. The total installed wind-energy capacity in Jordan reached 622 MW in 2021, with an estimated annual energy generation of 1,595–2,076 gigawatts (GWh), representing approximately 11% of the country’s electricity demand in 2021 (NEPCO 2021; Kiwan, Al-Gharibeh, and Abu-Lihia 2021). Eventually, the contribution of wind-generating units to the system-peak load in 2021 was approximately 15.3%, according to the annual report by NEPCO (2021).

Table 2. Summary of wind-energy projects in Jordan.

Project	Investor	Generation	Governorates/region	Generation capacity (MW)	Operation data
Hofa Project	German Eldorado Program	Government	Irbid	1.125	1996
Ibrahimyya Project	Dutch Corporation	Government	Irbid	0.32	1998
Jordan wind Project	International companies and a Jordanian consortium (JWPC)	PPAs	Tafilah	117	2015
Al-Hussein wind project (Ma’an)	Spanish Company Elecnor Engineering, Procurement, and Construction (EPC) Elecnor	Government Partner	Ma’an	80	2016
Al-Rajif Wind Farm	Green Watt	PPAs	Ma’an/ AlRajif	86.1	2018
Shobak Wind	Alcazar	PPAs	Ma’an/ Shobak	45	2020
Fujeij wind	KEPCO	PPAs	Ma’an/ Fujeij	89.1	2020
MAS Project	MASS Energy	PPAs	Tafilah	100	2020
Wind Energy Project-Daehan	Daehan (KOSPO)	PPAs	Tafileh	51.75	2021
Wind Energy Project-Abour	Abour Energy Company PSC (Xenel)	PPAs	Tafilah	51.75	2021

Bioenergy projects

Bioenergy resources in Jordan are mainly derived from municipal solid waste (MSW). The country installed its first pilot plant based on MSW in 2000 near Amman with a 3.5 MW capacity. As Jordan’s population increases, the amount of waste generated also grows, making MSW a crucial resource for the country (IRENA 2021). Daily waste-generation estimates are one kg per capita, and this volume contains more than 50% organic refuse. Moreover, approximately 2.7 million tons of solid waste are generated each year, which can cause environmental problems rather than providing any advantages to the energy sector or the economy of the country (Nahar Myyas et al. 2023). By contrast, biomass energy currently contributes only 0.1% of Jordan’s total energy demand (Nahar Myyas et al. 2023). The Greater Amman Municipality implemented a biogas unit to use the methane gas captured in Amman’s main solid-waste landfill (Ghabawi landfill), which is expected to reach a capacity of 7 MW in 2023. The governmental agency was authorized to design, build, and operate a biogas-pilot unit at the Zaatari Refugee Camp in Mafraq in 2019 (MoEnv 2021). Therefore, a recommended project for future investment is biogas collection and utilization from domestic solid-waste landfills across the governorates to produce electricity (MoEnv 2021). According to studies (Alnhoud et al. 2021; Al-Hamamre et al. 2017) the biogas produced can generate around 24% of Jordan’s primary energy consumed in natural gas form (656 tonnes) in 2012. As such, the Jordanian government planned to implement 40–50 MW of waste-to-energy projects in 2020.

Jordan has several other promising biomass sources including organic waste, animal excrement, olive mills, and organic byproducts from various industries. The Jordanian government aims to use these sources in a small-scale heating/cooling system. Jift, a waste product from olive-oil harvesting, can also be used as fuel or feed. The total annual jift supply is estimated to be 19,000 metric tonnes (MT) (Mercy Corps 2017). The biomass resources in Jordan are still being investigated and require thorough study to determine the most effective approach to generate renewable energy from them.

Geothermal projects

Geothermal energy is a promising renewable energy resource that Jordan has recently started considering. The country has geothermal sources such as hot mineral water in springs and wells along the Rift Valley. There are two distinct regions with high gradients up to 50 °C for every kilometer of depth (°C/km) in Jordan, the first in the country’s northeastern region and the second in the Dead Sea escarpment. However, the temperature (below 100 °C) is insufficient to generate electricity though the hot water is still used recreationally in many hotels and resorts (IRENA 2021). Small-scale indirect geothermal systems have been implemented for space heating and cooling in several public facilities (i.e., the National Center for Research, American University of Madaba and the development building at the Higher Council of Science and Technology) (Al-Zyoud 2019). According to the International Geothermal Association (IGA 2021), the currently used geothermal energy capacity is 153.3 MW thermal (MW_TH), which does not exceed 0.42% of the total geothermal energy resources in Jordan. Geothermal energy can be used in various applications such as fish farming, greenhouse heating, and the food industry. However, more research is needed to assess feasibility in the country (Al-Zyoud 2019).

Hydropower projects

Investment in hydropower is limited in Jordan due to a lack of appropriate flowing water bodies to construct large-scale hydroelectric power plants. Hydropower facilities are only located in two places in the country: King Talal Dam, with 4 MW of installed power capacity and the Aqaba Power Station, with 6 MW of installed power capacity (IRENA 2021). The hydroelectric power plant in Aqaba uses water from the Gulf of Aqaba to cool a thermal power plant. These plants generate approximately 60 GWh annually, representing 0.4% of the total electricity generated in Jordan in 2018 (IRENA 2021; Abu-Rumman et al. 2020). The height difference between the Red Sea and the Dead Sea is also assumed to be a potential hydropower resource that can generate electricity with an estimated 400–800 MW (IRENA 2021). Several case studies (Stoyanov et al. 2021; Al-Addous et al. 2020; Al-Masri et al. 2019) have been conducted in Jordan to investigate the viability of developing hydropower plants in the vicinity and they have shown promising investment potential. For example, a study by Al-Addous et al. (2020) assessed the potential of micro-hydro power generation in Jordan and found that it can be a cost-effective and sustainable solution for off-grid and rural areas.

Challenges of the renewable energy sector in Jordan

Jordan aims to expedite the transition toward a renewable energy-based system that aligns with its economic development agenda and is focused on the construction, manufacturing, transportation, and agricultural sectors. The challenges facing the renewable energy sector in the country can be categorized into three main issues related to (1) policies and regulations, (2) technical support, and (3) financial resources.

First, Jordan has been actively seeking to diversify its energy mix to reduce its dependence on imported fossil fuels and to promote renewable energy sources. The country has implemented several policies and regulations to support the production of electrical power from various energy sources such as the National Energy Strategy, the Feed-in Tariff Program, Net Metering, and the Energy Efficiency and Conservation Law (IRENA 2021). Overall, these policies incentivize the adoption of renewable energy technologies by reducing the payback period of investments. On one hand, these initiatives require large energy consumers to implement energy-efficiency measures and set energy-efficiency standards for appliances and buildings. On the other hand, maximizing the benefits of renewables requires creating a broad mix of policies, including skills development, research and development, and industrial programs. These policies must be carefully targeted to foster cost competitiveness for renewable energy versus oil and natural gas, to rectify any imbalanced tariffs (electricity prices in Jordan), and to ensure continued institutional and legal backing for securing sustainable energy supplies in the long run. There is a lack of regulation in the country related to energy storage at the levels of large-scale generation, transmission, distribution, and end-users. We recommend formulating a storage code containing the regulatory guidance for developing battery-storage infrastructure at various levels. Moreover, the implementation of new policies is necessary to promote the adoption of electric vehicles. In addition, limited policies are available to handle the recycling and decommissioning of PV power plants to save resources, reduce manufacturing costs, minimize waste, and decrease GHG emissions (Khawaja, Ghaith, and Alkhalidi 2021). Eventually, it is crucial for Jordan to implement renewable energy measures alongside its current energy-efficiency measures.

In small-scale renewable energy investments, the government has introduced policies such as the net-metering system and JREEEF. However, experts in the renewable energy market have criticized these policies for their limited scope and insufficient financial incentives (IRENA 2021; Kiwan and Al-Gharibeh 2020). The high upfront costs of installing renewable energy systems at the household level and the lack of financing options are also major barriers to realizing small-scale projects in Jordan. Moreover, the implementation of new electricity tariffs in Spring 2022 (NEPCO 2022) has further complicated efforts to build small renewable energy projects. These tariffs do not support the owners of these systems, which has affected their economic feasibility. As a result, promoting participation in such projects has become even more challenging, especially for low-income households.

Second, a shortage of technical support pertaining to electrical grid stability is one of the critical threats facing the growth of renewable energy projects in Jordan. Blackouts in different regions of the country in 2021 were a sign of significant problems due to fluctuations of the electrical load. The electrical grid has limited capacity and cannot accommodate diversity in electricity-generation sources (IRENA 2021). In addition, there is weak support for electric vehicle-charging stations and small-scale renewable energy projects (Alrwashdeh 2022; IRENA 2021). Therefore, there is a substantial need for a renewable energy-control center to increase the capability of government institutions to operationalize the systems and to conduct effective energy-sector monitoring, reporting, and investigation.

Jordan is already starting to address the technical challenges by pushing ahead with upgrades to the grid and creation of a new grid installation called Green Corridor. Green Corridor was established in the southern region at a total cost of US$172 million and included the construction of a new 400/132 kilovolt (kV) substation in Ma’an and the development of the 132/33 kV Qatrana and airport substations. The project included double-circuit overhead lines between the Ma’an substations, Qatrana substations, and Queen Alia International Airport (QAIA) substations and was completed in 2019. Green Corridor aims to transmit power produced in the southern region to the central loads in the middle of the country, hence alleviating overload on the transmission lines. Additionally, storage is important for grid management as a stand-alone asset or integrated with a renewable power supply and Jordan has opened a 23 MW/12.6 MWh Li-ion solar battery project in 2019 (IRENA 2021; MoEnv 2021).

Finally, the share of international investment in the renewable energy sector has to date been 75% and has entailed only limited participation from domestic financial institutions. In particular, local investors have not fully participated in utility-scale renewable energy financing. Despite this situation, the more significant parts of investments have been secured loans in cooperation with international financiers that overburden the state budget. In addition, the high cost of renewable energy technologies poses a significant challenge that could impede their widespread adoption in Jordan.

There has been an increase in the generation of electricity supply from renewables with slight growth in local electricity demand. However, Jordan is working on enhancing its role in the exported energy market by linking neighboring countries to the transmission production of renewables (NEPCO 2020). In addition, the government can incentivize electrification of the transport sector to address slow electricity-demand growth. Jordan is expected to experience adverse effects from climate change, including higher temperatures, reduced precipitation, and increased evaporation rates (Zittis et al. 2022). These changes will cause a rise in energy demand and prices due to extreme heat and water scarcity. Additionally, there is a risk that climate variability could damage infrastructure and disrupt the reliability of services.

One notable impact of COVID-19 in Jordan was a significant decrease in both peak and average electricity demands in 2020, with a reduction of 17.5% and 40%, respectively, compared to average demand in 2019. Energy consumption declined due to the suspension of industrial activities and the adoption of residential renewable energy systems linked to the distribution grid, thereby lowering the anticipated growth rate in the country. In addition, with a drop in oil prices in 2020 and the decline in energy demand due to the pandemic (Prabheesh, Padhan, and Garg 2020), Jordan’s National Control Center (NCC) imposed new restrictions on renewable energy deployment for purposes of energy security. Consequently, the NCC disconnected all renewable wheeling projects connected to the grid to maintain appropriate balance (Tawalbeh et al. 2021). This significantly influenced the grid by increasing volatility and decreasing stability.

According to a survey conducted by the Association for Energy, Water and Environment (EDAMA), the COVID-19 lockdown in 2020 (EDAMA 2020) resulted in 37% of registered renewable energy companies experiencing reduced revenues, while 32% were unable to generate revenue. Moreover, the pandemic caused delays in the implementation of several planned renewable energy projects, thus curtailing the expected cost of generating electricity (MoEnv 2021). However, the Jordanian government continues to contend that incorporating clean energy and sustainability goals into recovery plans can lead to more effective outcomes. Additionally, investing in renewable energy sources can enhance socioeconomic resilience and promote economic relief.

Development of renewable energy strategies in Jordan

As summarized in Table 3, strategies implemented by the Jordanian government have been key to growing the renewables sector. A crucial element for advancing toward sustainable energy has been to make progress in developing and implementing energy-efficiency regulations. More specifically, a necessary step was establishing the Renewable Energy and Energy Efficiency Law No. 13 of 2012 and its amendments (Ayadi, Al-Assad, and Al Asfar 2018). The law aimed to utilize renewable energy sources effectively, contribute to environmental protection, rationalize energy exploitation, and enhance energy efficiency in related sectors. Under this law, investors can develop grid-connected electricity-production projects under unsolicited or direct proposal submission. Bylaw No. 50 of 2015 determined the renewable energy direct proposal-submission requirements and procedures of connection to the grid (IRENA 2021; IFC and MIGA 2021). In addition, Jordan established domestic financing institutions to support the use of renewable energy, such as the JREEEF. The fund was created in 2012 (and became operational as part of Bylaw No. 49 of 2015) to invest in various sources of renewable energy (MEMR 2020). The primary aim of JREEEF is to secure financing for government initiatives and schemes centered on renewable energy and energy efficiency in both residential and industrial sectors. Additionally, it guarantees steady financial flows to these programs to ensure their ongoing viability (MoEnv 2020). In addition, Jordan established the required policies and regulations related to renewable energy projects for electricity generation to support the industry (Elrahmani et al. 2021). The decreasing costs of associated technologies over the last decade have prompted the government to increase their use in the national energy mix. As a result, the share of electricity generation from renewables jumped from 0.7% in 2014 to over 20% in 2020. Figure 2 illustrates the distribution of primary energy sources in Jordan in 2018 and 2020 (MoEnv 2021).

Figure 2. Distribution of primary energy sources in Jordan in 2018, 2020, and (predicted) 2030.

Table 3. Jordanian strategies in the renewable energy sector.

Strategy	Agency	Year	Related objectives
National Master Energy Strategy (2007–2020)	Royal Commission	2005 and then updated in 2007	The strategy was launched to maximize the utilization of local resources, including renewable energy. Therefore, the Jordanian government has successfully attracted foreign investment for power generation with renewable resources, using a variety of long-term power-purchase agreements supported by sovereign guarantees and using foreign capital markets through private investments. Its target was to reach 7% of renewable energy contribution in the energy mix by 2015 (IFC and MIGA 2021).
National Energy Sector Strategy (2020–2030)	Ministry of Energy and Mineral Resources	2020	The strategy is a new plan that sets the roadmap to support future growth in renewables. It aims to improve self-sufficiency by increasing usage of renewable sources and reducing energy consumption through energy efficiency measures in various sectors (IRENA 2021). As a result, carbon-dioxide emissions can be reduced by 10% by 2030. The strategy includes increasing the share of renewable energy in the electricity mix to 31% by 2030.
Green Growth National Action Plan (2021–2025)	Ministry of Environment	2020	The plan aims to develop green growth in six sectors: agriculture, energy, tourism, transport, waste, and sater, to increase Jordan’s capacity to contain shocks and recover from catastrophic events such as COVID-19. The plan would support achieving a cleaner energy mix through renewable resources, reducing GHG emissions by 14%, and emphasizing energy efficiency through green building and electric transport (MoEnv 2020; MEMR 2020).
Nationally Determined Contribution (NDC)	Ministry of Environment	2016 and then updated in 2021	NDC has been released to extend the Jordanian GHG emissions-reduction target from 10–14% to 31% by 2030. The reduction target is divided into an unconditional reduction target of 5% and a conditional target of 26% (MoEnv 2021).

The National Energy Sector Strategy for 2020–2030 involves increasing the share of renewable energy in the electricity mix to 31% by 2030 (representing approximately 3,200 MW) (NEPCO 2021). The strategy also predicts introducing 15% from oil shale, which, together with renewable sources, will raise generation from local resources to approximately 48.5% of generated capacity, as illustrated in Figure 2 (MoEnv 2021). Additionally, the energy efficiency of various sectors is anticipated to increase by 9% in 2030 compared to 2018. The Ministry of Environment has recently launched a Green Growth National Action Plan for 2021–2025, supported by the Global Green Growth Institute (GGGI) and targeting a cleaner energy mix through renewable resources (MoEnv 2020). Furthermore, in the Q4 of 2021, Jordan updated its NDC, extending its GHG emissions-reduction target from 14% to 31% by 2030 (MoEnv 2021).

Landscape of the energy sector in Jordan

Primary energy sources in Jordan

Figure 2 illustrates the breakdown of total primary energy supply in Jordan by source. Imported natural gas and oil still account for approximately 76% of the electricity generated. Domestic resources, including renewable and traditional energy sources, represent 22% of the energy supply. However, the Jordanian government plans to generate 48.5% of electricity using local sources. This can be achieved by increasing reliance on renewable energy to reach approximately 31% (3,200 MW) of total generated electricity and 9% improvement in energy efficiency distributed among residential, business services, and industrial users by 2030 (IRENA 2021; MoEnv 2020; MEMR 2020). In addition, dependence on natural gas and oil will be reduced by 8% and 2%, respectively. The implementation will be through measures listed in the national strategy-action plan with costs expected to be approximately US$2.41 billion. In summary, relying on domestic sources for electricity generation is crucial for achieving socioeconomic progress in the country.

Consumption of energy in Jordan

Peak load in Jordan has seen a notable rise during 2019 and 2020 by 5.5% and 7.4%, respectively, as illustrated in Figure 3. Average annual energy-​consumption growth has been approximately 3.1% between 2010 and 2020 (NEPCO 2021). With electricity-generation capacity reaching 5,424 MW in 2020, alternative clean and reliable energy sources like renewables have become increasingly essential to meet energy demands. The share of renewables in local available capacity was approximately 28% in 2020, as illustrated in Figure 3, whereas the remaining capacity was generated from traditional sources including combined cycles (49%), diesel (15%), natural gas (1.5%), and steam (6.5%). It is worth noting that 8% of the capacity of the renewable energy systems remained untapped for electricity generation in 2020. Hence, the Jordanian government is exploring opportunities to export electricity to neighboring countries.

Figure 3. Peak load and available capacity of generating electricity on the local grid.

The rising energy demand in Jordan can be attributed to two primary factors: the influx of refugees from neighboring countries and normal economic growth across different sectors. (Lenner and Turner 2019). As shown in Figure 4, approximately 63% of energy was consumed by two sectors (residential and commercial) because these are susceptible to overlapping conditions such as weather, cultural habits, population growth, and energy prices (NEPCO 2020; MoEnv 2020; NEPCO 2021). In Jordan, the industrial sector is the second-largest user of electricity, and the cost and reliability of energy are critical inputs for competitiveness at regional and global levels. Therefore, it is essential for the government to prioritize reducing electricity prices for the industrial sector in the upcoming energy-management plan. The country is actively seeking to increase the portion of renewable energy sources in electricity generation to fulfill the expected demand of 28.2 GWh and 38.3 GWh by 2030 and 2040, respectively, as illustrated in Figure 5 (NEPCO 2021).

Figure 4. Energy generation and consumption by sector on the local grid.

Figure 5. Electricity-demand forecasts on the local grid. Source: NEPCO (2021, 2020).

Impact of local electricity policies

The Jordanian government eliminated electricity subsidies in 2017 and the electricity price (tariff) in the country increased on average by US$0.034/kWh at the beginning of 2018. However, the tariff was later reduced to US$0.014/kWh in 2019 (Abu-Rumman et al. 2020). High tariffs negatively impact the competitiveness of domestic industries and it sometimes motivates firms to invest in their own sources of renewable power, resulting in a loss of high-consumption buyers (IRENA 2021). In the spring of 2022, the government introduced a new tariff for electricity subsidies (NEPCO 2022). It was recommended through the International Monetary Fund (IMF) program and Jordan will be committed to a three-year plan starting in 2021 to adjust electricity tariffs for all sectors. According to the EMRC, the new restructuring of the electricity tariff aims to direct government subsidies to Jordanian households and to reduce the high cost of electricity for several key economic sectors. Electricity consumption is expected to increase by 2.7%, supported by the recent reduction in tariffs for businesses and the potential for NEPCO to cut losses. As a result, additional renewable energy facilities could be established to meet the increased demand. Nonetheless, the implementation of new tariffs has added another layer of complexity to the execution of small-scale renewable energy projects. These investments have been affected by a lack of support for renewable energy-system owners under the new tariffs which has affected their economic feasibility.

Impact of greenhouse-gas emissions on the renewable energy sector

Recent studies suggest that GHG emissions in the Eastern Mediterranean and Middle East (EMME) region are increasing rapidly and surpassing releases in member countries of the European Union (Neira et al. 2023; Zittis et al. 2022). The EMME region is contributing significantly to climate change and countries in this geographic area have in recent decades warmed considerably faster than other populated regions. Simultaneously, the increase in temperature is predicted to continue at about 0.45 °C per decade, although global efforts to reduce GHG emissions could suppress this temperature rise (Zittis et al. 2022). At the 25th Conference of the Parties to the United Nations Framework Convention on Climate Change held in Madrid in 2019, Jordan outlined its priority sectors: energy, transportation, water, health, and agriculture. The government also pledged to reduce GHG emissions by 31% by 2030 (Hamed and Bressler 2019). Jordan promised to reach 1.5% of unconditional reductions through these means and 12.5% of conditional deductions that rely on the availability of international support for projects associated with GHG reductions (Abu Hajar et al. 2020). According to Abu Hajar et al. (2020), energy-related activities, including electricity and heat, transportation, and manufacturing, are responsible for 64% of Jordan’s total national GHG emissions. As shown in Figure 6, it is reasonable to prioritize the electricity-generation sector to support GHG mitigation efforts. For instance, renewable projects (solar PV and wind farms) avoided about 1.5 million tons of carbon emissions in 2018 (IRENA 2021).

Figure 6. Greenhouse-gas emissions by sector in Jordan and the percentage of total emissions, 2018.

The NDC has established a new target for reducing GHG emissions through various programs, actions, national policies, and international support and finance. Figure 7 illustrates the predicted GHG emissions and mitigation projections from 2020 to 2040 (MoEnv 2021). It is expected that cumulative GHG emissions will be reduced by 9.32 metric tons of carbon-dioxide (MtCO₂) by 2040. The NDC emphasizes the use of renewable energy and energy efficiency measures to support GHG mitigation efforts, with a target of increasing the share of renewable energy in electricity generation by 35% in 2030 and improving energy efficiency by 9%. These reductions are expected to avoid cumulative emissions of approximately 4,528 gigagrams of carbon-dioxide equivalent (GgCO₂eq) (MoEnv 2021). Moreover, implementing CSP projects, with an installed capacity of 100 MW and 300 MW, can potentially prevent approximately 2,921 GgCO₂eq of GHG emissions (MoEnv 2021). In contrast, conducting an environmental analysis before approving any renewable energy project is crucial to thoroughly evaluate its effects on the surrounding area and inhabitants (Al-Zu’bi 2016).

Figure 7. Jordan’s greenhouse-gas emissions and mitigation projections, 2020–2040.

Investments in renewable energy in Jordan

The current state of investment in renewable energy

As discussed above, Jordanian climatic conditions make it appropriate to invest in renewable sources of energy. Several official reports, including MoEnv (2020, 2021) and IRENA (2021), have identified solar and wind as the most available renewable energy sources in the country while smaller potentials exist for hydropower, bioenergy, and geothermal. At the same time, the unprecedented influx of refugees, the growth of domestic sectors, the rising cost of imported fuel, and the need to reduce GHG emissions have led Jordan to identify development of a clean, sustainable, and affordable energy supply as its priority to overcome these challenges. Moreover, investing in renewable energy can promote the development of green jobs, bolster the Jordanian economy, and improve social equity and welfare (IRENA 2021).

The initial stage of Jordan’s investment program was the launch of the National Energy Strategy Plan for 2007–2020 which was motivated by fluctuating supplies of imported energy and the need to maintain energy security. The plan was supported by seeking US$20 billion in energy-development investments by 2020, including renewable energy, oil-shale uses, and nuclear-power plants (Abu-Rumman et al. 2020). This initiative provided the foundation for Jordan to become first in the MENA region in terms of the best investment environment in renewable energy according to Bloomberg’s Climate-scope 2019 Index (a distinction that it has held for three continuous years) (Avis 2020). The country has also ranked 38 in the list of the top 40 best markets for investment in renewable energy worldwide according to Ernst and Young (2021). This information helps investors to make informed decisions, to build trust in the capital markets, and to help them grow, transform, and operate.

As highlighted in Table 3, Jordan has continued to move toward a sustainable economy by launching the Green Growth National Action Plan for 2021–2025 (GG-NAP). This plan includes 12 priority actions to enhance green growth via the energy sector and costing approximately US$85.3 million to implement. The most critical actions are: (1) to develop an industrial renewable roadmap and investment plan, (2) to achieve accreditation under the Green Climate Fund for the JREEEF, and (3) to implement the United Nations Energy Sector Monitoring, Reporting and Verification (MRV) System (MoEnv 2020). These actions will be supported mainly by the public budget, donors, partners, and private sector investors, hoping to reach an economic growth rate of 7.5% in 2025. Jordan has thus far significantly succeeded in implementing various renewable energy projects by attracting over US$5 billion in investment in the renewables sector, which has rapidly contributed to the energy mix (MoEnv 2020).

The Jordanian government has conducted three proposal-submission rounds for qualified investors interested in developing renewable energy projects on a build, own, and operate basis. In addition, MEMR defined the feed tariff to encourage foreign investment in renewable energy projects and to secure investors. Under these circumstances, investors can evaluate their project’s feasibility and future revenue with low risk. The feed tariff, used for the first round only, demonstrates the proposed prices (tariff) for power generation from various renewable energy sources, as shown in Figure 8 (Abu-Rumman et al. 2020; MEMR 2015). The first round (2012–2015) was focused on the southern region of Ma’an, with a total capacity of 200 MW solar projects and 117 wind farms. The Jordanian government then used the competitive bidding process for the second and third rounds. The second round (2013–2019) was focused on the northern and eastern parts of the country with a total capacity of 200 MW (Benmarraze et al. 2015; Jaber et al. 2015). The latest (third) round of direct proposal submissions in 2018 yielded bids as low as US$0.026 kWh. The cost of electricity bought by NEPCO from renewable energy averaged about US$0.11/kWh compared to US$0.12/kWh from conventional sources, as illustrated in Figure 9 (NEPCO 2020). This round has a total capacity of 200 MW solar projects and 100 wind farms.

Figure 8. Jordan’s reference price of renewable energy sources. Source: MEMR (2015).

Figure 9. Illustration of the average power-procurement cost by NEPCO, comparing solar PV bids under three rounds.

Renewable energy, especially solar PV, is profitable in the power sector and, together with decreased storage costs, presents a viable alternative to imported fuel-based solutions. Therefore, the Jordanian government has successfully produced 2,063.3 MW from whole wind and solar energy investments in 2020 (IRENA 2021). According to NEPCO, there was an increase of 23% in requests for renewable energy licenses in 2021. The total number of applications was 863, which the authority received in different fields, including radiological and nuclear, natural resources, and oil and its derivatives.

The Jordanian government has carried out numerous initiatives to encourage investments in the renewable energy sector such as creating an energy fund to support renewable energy-facilities development and enhancing tax-incentive policies. Investors can obtain a 100% tax exemption for 10 years in some instances where socioeconomic developments are required in certain zones. They can negotiate directly with the MEMR to avoid long-competitive bidding processes. Electricity generated from renewable energy projects will be purchased by NEPCO directly. The Jordan Investment Commission (JIC) is another association actively engaged in developing investment proposals, promoting projects to potential foreign investors, and facilitating foreign investment to promote green growth initiatives in the country (Olawuyi 2021).

Future investment opportunities in renewable energy

Many studies have investigated the strategies implemented in Jordan to develop renewable energy sources (Alrwashdeh 2022; Shatnawi, Abu-Qdais, and Abu Qdais 2021; Rahoma and Obeidat 2021; Al-Zyoud 2019). For instance, Rahoma and Obeidat (2021) studied the renewable energy sources available in the country using multi-criteria decision analysis (MCDA). The techniques have been categorized depending on environmental, economic, political, and technical aspects, and the overall weighted scores (out of 100 points) are listed in Table 4. These data can assist decision makers and investors in choosing the most suitable track.

Table 4. Weighted scores of renewable energy resources in Jordan.

Renewable technique	Overall weighted scores
PV technology	80.89
CSP	64.14
Wind energy	61.14
Combined cycle gas turbine (CCGT)	31.57
Oil shale	26.94
Nuclear energy	24.17

Additionally, these investments can contribute to environmental protection and enhance the competitiveness of domestic industries. Jordan’s grid involves a 400 kV electric interconnection line with Syria and Egypt and NEPCO (2022) signed interconnection project agreements with the Lebanese and Iraqi grids in 2021. In addition, the country completed an agreement to construct the AlRama substation to raise the capacity of electric power exported from NEPCO to the Jerusalem District Electricity Company from 40 to 80 MW. Currently, Jordan is finalizing an interconnection agreement with Saudi Arabia which will result in comprehensive Arab electrical interconnection projects, ultimately increasing Jordan’s ability to export electricity to neighboring countries (IRENA 2021; NEPCO 2022). Job creation is a crucial aspect of the socioeconomic dimension of renewable energy for emerging economies and diversifying the energy mix promotes employment and new industry development in the country.

Based on IRENA’s reports (IRENA and ILO 2022; IRENA 2021), the skills and occupational requirements necessary for developing a typical 50 MW solar energy project and 50 MW onshore wind farm are outlined in Figure 10. Operating and maintaining the projects have the highest labor requirements, accounting for 56% and 43% in PV and wind projects, respectively. While employment in manufacturing and installation is temporary, jobs in operations and maintenance last throughout the project’s lifetime. In 2020, Jordan had 5,000 workers engaged across all renewable energy technologies, with 40% of them in solar PV-related sectors. In addition, IRENA (2021) predicts that there will be over 6,000 employment opportunities in energy efficiency, particularly in the lighting and building sectors, as well as in renewable energy. Approximately 95% of the jobs were held by men, with women occupying only around 5% of the positions. Specifically, while women held 8% of the jobs in solar energy, their representation was much lower at just 1% in the wind-energy sector. However, the number of workers is predicted to increase fivefold by 2030 (Sooriyaarachchi 2015).

Figure 10. Human-resources distribution for developing 50 MW solar PV and 50 MW wind projects. Source: Rahoma and Obeidat (2021).

Opportunities abound for international companies in the renewable energy sector and they range from equipment to technology to consultancy services. The market includes but is not limited to solar cells and PV panels, wind turbines, generators, storage batteries, support structures, and software for energy management and control. Accordingly, there is a need for load-management systems, smart-metering devices, and smart-grid systems. NEPCO plans to increase the grid capacity to accommodate the additional power generated by conventional and renewable energy projects. This expansion plan creates a favorable investment environment for both local and international investors seeking to capitalize on the growing demand for renewable energy projects in Jordan, especially in grid-infrastructure development and related services.

Conclusion

This article has analyzed the current state of the renewable energy industry in Jordan, aimed at aiding decision makers and investors in planning future projects. It investigated the current energy demand in the country and the role of renewable energy sources in achieving long-term energy security. We have identified the challenges facing the renewable energy sector such as policies and regulations, technical support, and financial resources which directly affect the incorporation of renewable energy into the country’s energy mix. However, Jordan is already taking steps to address these situations and to invest in opportunities presented by the renewables industry.

To further promote the use of renewable energy, we recommend that Jordan focus on managing its power system and invest in grid infrastructure and storage capacity. Implementing CSP plants in the southern region of the country could also have a significant impact on the economy and reduce dependence on imported oil. However, more investigation is required to evaluate the feasibility of such applications. Therefore, establishing renewable energy centers would facilitate research into grid integration of renewable energy sources and help to expedite solutions for adoption. We further recommend support for domestic universities in designing guidelines for research frameworks in water, renewable energy, and the environment to help prepare a qualified and trained workforce.

A clear investor’s guide should be designed to attract investors, defining the best-enabled energy technologies suited to each location in Jordan and highlighting the country’s different renewable energy sources, vast business-growth potential, and competitive advantages. The Jordanian government should conduct a detailed analysis of the project’s impact on the surrounding area and population. Finally, investors should provide an environmental analysis before any renewable energy project is approved by the Jordanian government.

Disclosure statement

No potential conflict of interest was reported by the authors.