Current status and future investment potential in renewable energy in Jordan: An overview

Abstract

Jordan imports 94% of its oil and gas (fossil fuels) to meet its energy needs, leaving it vulnerable to variations in fuel price. Jordan's demand for energy is growing at a rate of 3% annually. In response, the government set a target of obtaining 10% of its energy needs from renewable energy resources by increasing electricity generation share from the present 1.13 GW–1.8 GW by 2020. The sources of generation include abundant solar, wind, and biomass resources, which also enhance economic growth and reduce pollution. This article analyzed the current energy situation in Jordan and assessed the available renewable energy resources potential for direct investments. The actual contribution of clean energy is still moderate at roughly 7% of total energy demand, despite the efforts placed on the development of alternative energy resources. The national electricity supply and demand are presented, and the government initiatives, financial incentives, and tax exemptions to encourage investments in clean energy are also discussed. The renewable energy policy generates future opportunities for investors with an ambitious $20 billion energy plans as does its strategy to improve energy efficiency. This article will benefit interested clean energy investors and developers and plans for 2,000 MW investments in wind and solar energy are ready for bidders. Such an endeavor and model will also benefit neighboring countries in the region. Energy; Energy economics; Renewable energy resources; Energy sustainability; Energy use in building; Renewable energy; Wind energy; Solar energy; Investments; Jordan.