Growing Use of Renewable Energy Resources, Stability of the Government and Aim to Reduce the Fuel Imports will Lead Jordan Cleantech Energy Market: Ken Research
Posted on 27 September 2017 by KenResearch Energy and Utilities,
- The announcement of grid expansion will help in more projects coming in the cleantech segment of the country and will promote the renewable energy market segment.
- Removing the subsidies given on the conventional energy sector will make cleantech energy more price competitive making it an attractive option for investment in energy sector.
- Solar photovoltaic energy segment will contribute larger share in total percentage of cleantech energy mix.
- Increasing the electricity generation by using cleantech energy sources will help in reducing the import of fuels from other countries.
The government of Jordan has taken various steps that have increased the investments in the cleantech energy sector in Jordan. It has implemented the Renewable Energy and Energy Efficiency law in 2012 to promote the use of renewable energy resources of the country and to generate electricity by using clean technologies rather than using conventional sources. The country has a target of setting up of 10.0% of renewable energy input into the energy mix of the country in the year 2020 in line with the National Energy Strategy. It aims of establishing and generating 1,200 MW of wind energy and 600 MW of solar energy by 2020. The government of Jordan reduced the amount of subsidies issued on the conventional energy sources which created unrest in the country. Removal of subsidies from the electricity generated by conventional sector will make the electricity generation by using renewable resources more competitive and will lead to the development of renewable energy sector in the country.
The country has huge potential of developing wind energy and solar energy sector in Jordan due to the suitable geographical and climatic conditions of the country. The cleantech energy sector in Jordan will increase by more than 3 times from 2016-2020. The EPC method for developing the project will continue to generate revenue for companies operating in this segment.
Jordan will be developing many solar energy projects during 2017-2019. The various projects that are in the pipeline are Baynouna project, Quweira solar power, Al-Hussein Bin Talal University campus project, Mafraq ACWA and others. Major projects coming in wind energy sector are Ma’an wind farm phase II, Fujeji wind farm, Bab al-Hawa wind farm, Ma’an wind farm phase I extension and Tafilah wind power project.
Analysts at Ken Research in their latest publication, Jordan Cleantech Energy Market by Technology (PV and CSP), Site (Onshore and Offshore) and by Type – Outlook to 2021 believe that promoting the cleantech energy sector by the government and removing the subsidies completely on the electricity generated through conventional sources of electricity will help in the development of the renewable energy sector in Jordan. Investment in R&D and organizing trade fairs to promote the sales of solar and wind equipments will help in developing the domestic industries in this segment.
Ankur Gupta, Head Marketing & Communications