220 J. OBEID
core of the renewable energy deployment, and distributed generation
spread faster than centralized power plants and utility-scale solar and wind
farms.
Jordan and Palestine: The Promise of Reduced Foreign Dependence
Although Jordan’s power sector has a better standing than the other
two countries, it has remained vulnerable to supply shortage risks. The
government of Jordan has turned toward alternative energy following
economic and fuel supply shortage crises, and aimed for the diversification
of supply sources and the promotion of domestic resources. This mission
has launched the kingdom into a new energy era. Jordan’s position in the
region had never been particularly strong, especially with the kingdom’s
total reliance on fuel imports. The investment in alternative energy would
eventually improve Jordan’s political and economic stability and transform
the dynamics with the economies in the region.
Prior to the US-Iraq war in the year 2003, Jordan relied on oil imports
from Iraq at a concessional rate. 29 The war and the change in administration in Iraq halted Jordan’s supply. This, coupled with rising global
oil prices, placed a significant burden on the state’s budget and electricity
supply. An agreement with Egypt was signed to import natural gas for the
power sector, and the National Energy Strategy 2005–2020 was issued.
The fragile power sector took another hit from 2011 onward as violent
attacks targeted the Egyptian pipeline through Sinai during the Arab
Spring, causing an electricity crisis and reducing the country’s export
capacity. 30 Gas imports to Jordan came to a halt in 2014 and the kingdom
had to switch to more expensive fuel imports of heavy fuel oil and diesel.
This increased the cost of electricity by multiple folds and resulted in large
losses for NEPCO and rising debt on the state. NEPCO losses climbed
from $3.2 billion in 2012 to $6.9 billion in 2015. 31 The government
redoubled effort to diversify the sources of supply.
The government has been keen on attracting private investments
into the sector since the 1990s. It has hence implemented a series
of reforms including restructuring the Jordan Electric Authority into a
government-owned public joint company NEPCO, under the law No.
316 of 1996 and issuing the General Electricity Law No. 10 32 as a general
regulatory framework. NEPCO was unbundled into generation, distribution, and transmission companies in 1997. Currently, the power sector
comprises four partially or fully private generation companies (GENCOs),
core of the renewable energy deployment, and distributed generation
spread faster than centralized power plants and utility-scale solar and wind
farms.
Jordan and Palestine: The Promise of Reduced Foreign Dependence
Although Jordan’s power sector has a better standing than the other
two countries, it has remained vulnerable to supply shortage risks. The
government of Jordan has turned toward alternative energy following
economic and fuel supply shortage crises, and aimed for the diversification
of supply sources and the promotion of domestic resources. This mission
has launched the kingdom into a new energy era. Jordan’s position in the
region had never been particularly strong, especially with the kingdom’s
total reliance on fuel imports. The investment in alternative energy would
eventually improve Jordan’s political and economic stability and transform
the dynamics with the economies in the region.
Prior to the US-Iraq war in the year 2003, Jordan relied on oil imports
from Iraq at a concessional rate. 29 The war and the change in administration in Iraq halted Jordan’s supply. This, coupled with rising global
oil prices, placed a significant burden on the state’s budget and electricity
supply. An agreement with Egypt was signed to import natural gas for the
power sector, and the National Energy Strategy 2005–2020 was issued.
The fragile power sector took another hit from 2011 onward as violent
attacks targeted the Egyptian pipeline through Sinai during the Arab
Spring, causing an electricity crisis and reducing the country’s export
capacity. 30 Gas imports to Jordan came to a halt in 2014 and the kingdom
had to switch to more expensive fuel imports of heavy fuel oil and diesel.
This increased the cost of electricity by multiple folds and resulted in large
losses for NEPCO and rising debt on the state. NEPCO losses climbed
from $3.2 billion in 2012 to $6.9 billion in 2015. 31 The government
redoubled effort to diversify the sources of supply.
The government has been keen on attracting private investments
into the sector since the 1990s. It has hence implemented a series
of reforms including restructuring the Jordan Electric Authority into a
government-owned public joint company NEPCO, under the law No.
316 of 1996 and issuing the General Electricity Law No. 10 32 as a general
regulatory framework. NEPCO was unbundled into generation, distribution, and transmission companies in 1997. Currently, the power sector
comprises four partially or fully private generation companies (GENCOs),