Energy and Utilities Sector
Competitive Advantages
Energy opportunities
Opportunities
Competitive Advantages
Rising Demand in Jordan and MENA
- Macro population and production growth rates in Jordan and MENA region.
- MENA industries markets are among the fastest growing in the region
- MENA has 4.5% of Worldwide installed power capacity
- GCC to require 100,000 MW in next 10 yrs
- GCC building interconnected system
- Rising Per capita consumption – trending to 2,000 Watts/person
- Rapid population growth – new connections
- Higher quality infrastructure needs – from IT to residential to regulatory standards
- Rising Power and gas trade – brings about fuel price stability
- Positive GDP growth that is strongly correlated to energy demand Real estate and construction boom
Changing trends
Product prices and key demand drivers
- Commercial performance improvements are critical to improved sector performance
- Rising fuel prices lead to seeking alternative forms of energy
Exchange Rates
Suppliers from EU will be more expensive compared to US or Asian suppliers.
Jordanian Dinar is pegged to the US dollar
Input costs (for most important raw materials)
- Jordan has abundant resources for renewable energy (solar, wind, oil shale, uranium, etc…)
- Jordan has access to some raw materials (e.g., silicon flour) directly
- Affordable buildings, infrastructure and power supplies for export light assembly
- Available staff and managerial capacity
Energy and Infrastructure projects are bankable projects
- Projects are bankable through Public vs. private company finance structures and joint ventures
Strong Regulatory environment
| 1996 |
Law No. (IO) of 1996, the General Electricity Law (“1996 GEL”) |
| 1999 |
Amendment to 1996 GEL - Formation of a Regulatory Commission |
| 2002 |
New Electricity Law (“2002 GEL”) |
| 2007 |
Renewable Energy Law – Draft ready |
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The Government enacted a new electricity law, the General Electricity Law for the Year 2002 (2002 GEL) that clarifies the role and function of the Commission as an independent agency responsible for regulating the power sector in three areas - generation, transmission and distribution. Current actions include:
- Issuing and maintaining licenses to existing, unbundled companies for the generation, transmission and distribution of electricity
- Issuance of new licenses to developers of electric power stations planned for capacity in excess of 5 MWe through a competitive tendering process (the process for small power is unregulated)
- Setting retail tariffs through a transparent process
- Guiding the implementation of new policy on renewable energy