New Energy Conference-H.E Alaa Batayneh's Speech


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New Energy Conference-H.E Alaa Batayneh's Speech

  1. 1. Keynote Speech of His Excellency Alaa Batayneh Minister of Energy and Mineral Resources on "Status update on Renewable Energy Sector in Jordan At New Energy Conference 16 September 2012 , Amman – Jordan ‫ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــ‬ExcellenciesDistinguished GuestsLadies and GentlemenIt gives me great pleasure to be here with you today addressing thisimportant gathering. Allow me to extend a warm and specialwelcome to our guests from China and all over the world and toexpress my appreciation for their attendance and interest in thisconference. I would also like to express my gratitude to theorganizers of this conference. 1
  2. 2. As you are aware, Jordan is a big importer of energy, amountingto more than (96%) of our energy needs, creating a heavy burdenon the economy. Besides high energy demand with growth ratesreaching 7.4% annually in electricity needs.We have set for ourselves the ambitious target of 10% renewableenergy input into the energy mix by 2020 in our Energy Strategy,consisting of a mix of energy efficiency measures, solar and windenergy, and other forms of renewables for electricity or as fuels.Hence, we intend to follow a path of mixed technologies forelectricity generation from renewable sources, and aim to exploitthe declining costs of wind energy to reach 1200MW in 2020.Furthermore, with an average solar radiation above 2000 kWh/m2per year, Jordan’s solar energy potential is amongst the highest inthe world. Therefore, we aim to fasten the development of solar toreach 600MW by 2020 despite relatively higher system costs, inorder to gather implementation experience required for muchlarger future capacity expansions.This can happen only if we work together, public and privatesectors, particularly in the creation of favorable financingconditions to reduce the costs impact of renewable energy projects.The challenge is to achieve this with minimal impact on thealready strained public-debt. 2
  3. 3. Ladies and GentlemenHis Majesty’s government for its part is working on refining thepolicy mechanisms which reduce costs of projects and create aclear and transparent framework for investors to finance projectswith lower risk.We are building on the Renewable Energy and Energy EfficiencyLaw which was passed as a permanent Law in April 2012. Thislaw, the first in the region, allows investors to identify and developgrid-connected electricity production projects through the so calledunsolicited or direct proposal submission.The law also created the Jordan Renewable Energy and EnergyEfficiency Fund, which aims to channel financial resources to theexploitation of renewable energy in Jordan. We are formalizinghow best to utilize such a fund for renewable energy and energyefficiency projects.The Ministry of Energy and Mineral Resources, together with theElectricity Regulatory Commission and with the support ofinternational experts, seeks to identify pricing options that areattractive to investors, reflect the long term economic andenvironmental benefits and are – at the same time - acceptable forGrid Utilities and – in the end - the consumers. Therefore, a well-founded reference price list for different Renewable technologieswas developed and issued by the ERC in May 2012.Ladies and Gentlemen, 3
  4. 4. On the projects development side, , the Government developed aPolicy Statement to help establish a roadmap of how to develop thetargeted 1800MW renewable energy projects as per the EnergyStrategy, either through direct proposals or competitive tenders onBOO basis.As for The Direct Proposals Approach, the Ministry received(64) Expressions of Interest last year, (34) were shortlisted withtotal capacity of (1000 MW), of which (29) MOUs were signed.Direct proposals out of these MOUs are expected to be receivedbeginning next year, and some of these projects- if accepted- mightbe operational by the end of 2013.I would like to mention here that last week the Ministry distributedthe Instructions for submissions of the direct proposals as well asthe draft project Agreements (including the Power PurchaseAgreement, Support Agreement and the Grid connectionAgreement), in order to help the MOU bidders prepare theirproposals on the same format and playing field to allow theministry evaluate those proposals on a transparent approach andwell defined mechanism.Ladies and Gentlemen, 4
  5. 5. In closing, I must say that Jordan has laid down the necessary legaland commercial tools for Renewable Energy, and is ready now toattract and receive commercial investments in this field.I wish you a successful conference, and an enjoyable stay in ourbeloved country, under the wise leadership of His Majesty KingAbdullah II.Thank you. 5