Jordan Energy

Two landmark deals sealed in March have paved the way for Jordan’s power authority to begin buying solar electricity from the private sector, supporting the kingdom’s long-running efforts to boost renewable energy production.

Following the choice of a Russian consortium to build Jordan’s first nuclear power plant, the government hopes it will help alleviate problems far beyond the obvious ones in the kingdom’s energy sector.

While Jordan has had some success in meeting the requirements of its $2bn stand-by arrangement with the IMF, fulfilling its promise to lower electricity subsidies as part of a larger plan to reduce losses at the state power utility and improve the government’s fiscal position is proving more of a challenge.

A double pipeline that will channel oil to Jordan from Iraq is expected to play a key role in the Kingdom’s efforts to diversify and strengthen its energy sources.

Harnessing new technology to extract Jordan’s oil shale reserves could help reduce reliance on imported hydrocarbons as well as enhance energy security.

Ongoing energy concerns continue to plague Jordanian manufacturers despite an overall resilient performance from the sector in 2012. As the country grapples with slow economic growth, subdued international investment and a mounting public budget deficit, industrialists are working to combat a new wave of electricity tariffs that have already contributed to a rise in production costs.