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.
What measures is Jordan taking to ensure its energy needs are met, and what role will alternative energies play in the sector going forward?
Energy represents one of Jordan’s key economic and strategic challenges. The issue has transformed into a political problem, with recent fuel subsidy cuts and consequent price rises sparking protests against a backdrop of regional unrest. The government is considering measures such as rolling blackouts and restrictions on driving to deal with the...
The passage of the Renewable Energy and Energy Efficiency Law (REEL) in April 2012 marked a major step towards the development of a significant renewables generation capacity in Jordan. The key change in the law was to allow investors to propose renewable energy projects to the government, rather than having to respond to government tenders (as was...
Despite bordering oil and gas powerhouses Saudi Arabia and Iraq, Jordan has traditionally been regarded as having little in the way of energy resources of its own, and the country currently remains overwhelmingly reliant on imports. This reliance has in recent years been the source of growing political, economic and strategic problems for the...
Despite being regarded as energy-resource-poor, Jordan purportedly has vast reserves of oil shale, which can be processed into synthetic crude oil or burned directly for electricity production. Extraction is comparatively expensive, but global energy prices are making production of resources economically viable, and three oil shale concessions are...
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