Energy Law at Jordan

Certainly! Here’s an overview of Energy Law in Jordan:

Energy Law in Jordan: Overview

Jordan’s energy sector is strategically important due to its limited natural resources and high energy demand. The country focuses heavily on energy security, diversification, and renewable energy development.

1. Legal and Regulatory Framework

Jordan’s energy sector is governed by several laws and regulations aimed at regulating electricity, oil, gas, and renewables.

The key piece of legislation is the Electricity Law No. 64 of 2002, which regulates generation, transmission, distribution, and supply of electricity.

Other relevant laws include:

Energy Conservation Law No. 13 of 2012: Encourages energy efficiency.

Renewable Energy and Energy Efficiency Law No. 13 of 2012: Promotes renewable energy projects and sets rules for private sector participation.

Natural Gas Law No. 64 of 2007: Governs natural gas exploration, production, and distribution.

2. Regulatory Bodies

Energy and Minerals Regulatory Commission (EMRC): Regulates the electricity, natural gas, and renewable energy sectors.

Ministry of Energy and Mineral Resources (MEMR): Sets energy policy and oversees strategic planning.

National Electric Power Company (NEPCO): State-owned company responsible for transmission and bulk electricity purchase.

Jordan Atomic Energy Commission (JAEC): Oversees nuclear energy matters.

3. Energy Sources and Sector Structure

Electricity generation mix: Fossil fuels (mostly imported natural gas), renewables (solar, wind), and some oil derivatives.

Jordan imports most of its energy needs, including natural gas from Egypt and electricity from neighboring countries.

Growing investments in solar and wind projects to reduce dependency on imports.

Development of nuclear power as a future energy source.

4. Renewable Energy & Energy Efficiency

Jordan has set ambitious renewable energy targets, aiming for renewables to represent 20% of the energy mix by 2025 and higher thereafter.

The Renewable Energy and Energy Efficiency Law encourages private sector investments via feed-in tariffs, net metering, and competitive tenders.

The Jordan Renewable Energy and Energy Efficiency Fund (JREEEF) finances and supports projects.

5. Energy Market Reform

Jordan is gradually opening its energy market to competition, particularly in renewable energy generation.

Privatization and Independent Power Producers (IPPs) are key features.

Regulation ensures consumer protection, tariff setting, and grid access.

6. Key Challenges

Heavy dependence on imported fossil fuels.

Energy security amid regional instability.

Financing large-scale renewable projects.

Integrating intermittent renewable energy into the grid.

 

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