A New Paradigm for Energy Policy in Jordan Booz Allen Hamilton Standard Colors Colors should be used in the color pairs whenever possible. Do not mix and match colors, use pairs together as shown. Black, White and Gray can be used with any of the other colors. Another title could be: Scaling Human Development Initiatives in Jordan Green Pantone 357 R 15 G 67 B 24 Blue Pantone 2 88 R 11 G 31 B 101 Purple Pantone 2765 R 12 G 4 B 79 Pantone Cool Gray 6 R 158 G 158 B 158 Dr. Ibrahim Saif, Black Red Pantone 485 R 252 G 5 B 14 Yellow Pantone 3965 R 232 G 244 B 4 Aqua Pantone 319 R 126 G 204 B 189 White

Energy consumption places a big and volatile burden on Jordan’s economy given that 97% of the demand is imported… Annual Cost of Consumed Primary Energy Relative to Jordan Economy Consumption as % of Imports Consumption as % of GDP Source: MEMR (2016)

In addition, Jordan’s energy sector faces multiple challenges…. Rapidly growing energy demand 7% annual growth in primary energy demand 5.5% annual growth in electricity demand Influx of refugees from neighboring countries 1.4 million Syrians entered Jordan Sharing energy and water resources, and straining social services and infrastructure Substantial subsidy flows for household electricity consumption $1.3 billion spent on electricity subsidies in 2014 Mobilizing the investment to expand energy resources New supplies (conventional and renewable) Transmission additions

National Energy Strategy 2015-2025 Strategic Goals Therefore, Jordan’s energy policy promotes diversifying energy sources while reducing energy cost… National Energy Strategy 2015-2025 Strategic Goals Achieve Security of energy supply needed for comprehensive and sustainable development. Energy Security Energy Sources Increase the contribution of domestic energy sources to the total energy mix and reduce dependence on imports. Reduce the cost of energy on the national economy. Energy Competitiveness

Jordan National Energy Strategy is built on seven pillars and included a comprehensive package for strengthening the regulatory framework of the sector… 1 Ensuring sustainable supply of petroleum products, and promote competition in the sector 2 Achieving security of electricity power supply 3 Achieving security of natural gas supply and diversifying import sources 4 Utilizing of renewable energy sources to generate electricity Exploiting of oil shale to generate electricity and the production of shale oil 5 6 Introducing of nuclear power in electricity generation 7 Raising the efficiency of energy consumption

The strategy also targets a revised energy mix for the years 2017, 2020, and 2025

Jordan is spearheading the region in renewable energy with about (1500) MW of Solar and Wind projects are currently under development, and (500) MW are already operational…. Renewable Energy Unprecedented prices of Solar PV power projects below 6-8 US Cents per kWh for 50 MW single size projects. Strong partnership and investment by the private sector, which is critical for a sustainable energy future. Enabled by a legal framework that provides investors with a high degree of predictability, a level playing field, low transaction costs, and fair rate of return. Jordan is also active in the small-scale renewable projects (Net-Metering Roof Tops Systems). More than 50 MW of PV total capacity is installed across the country. Installed capacity is expected to double by the end of this year. More than 100 ESCOs are currently in business.

To reduce consumer demand, the National Energy Action Plan calls for a 30% increase in solar water heater uptake and 20% improvement in energy efficiency by 2020… Energy Efficiency The National Energy Efficiency Action Plan (NEEAP) was approved by the Cabinet in 2013 and is currently under implementation. The NEEAP is planned to save more than 502 Gigawatt / Hour (GWh). To achieve the 20% targeted decrease in electricity consumption, around 8 sectors are tackled through 25 different measures. Jordan is working with local , international and regional institutions such as RECREEE to define priority actions across targeted sectors. Also, The Ministry of Energy established Jordan Renewable and Energy Efficiency Fund (JREEEF) is playing an active rule in channeling financing and support to implement energy efficiency initiatives and programs.

According to various estimates, oil shale deposits underlie more than 60% of Jordan's territory totaling approximately 40 – 70 billion tones, which would make Jordan the 6th richest country in the world…. Oil Shale Exploration Jordan attracted a number of international experienced companies (e.g. The Estonian company Enefit) in the field of Oil Shale technology, for extracting the oil and producing electricity. Project Agreements of the first Oil Shale Fired Power Plant of 470 MW were signed with an Estonian/Jordanian/Malaysian JV This project is the first of its kind in the region, utilizing local conventional resources, The project achieved financial closure to be developed on BOO basis, and to be operational in 2020.

Basra-Aqaba Oil Pipeline Furthermore, Jordan is looking for regional cooperation to solve national energy challenges and diversify sources of supply….. Basra-Aqaba Oil Pipeline The pipeline will extend from Iraq’s city of Najaf, along the Saudi borders, to (Jordan’s) Aqaba. The route of the pipeline has been changed to avoid areas under the control of the terrorist group, Daesh. The project is expected to cost USD 18 billion. Jordan and Iraq will be adopting a build-operate-transfer (B.O.T) system within 15-20 years in carrying out the undertaking. The pipeline will transfer nearly 100 million barrels of oil, covering Jordan’s needs of crude oil, which are estimated at 150.000 barrels a day. The remaining amounts will be transferred to countries with which Iraq have oil deals.