هيئـــة تنظـيم قطاع الطاقة والمعادن Energy & Minerals Regulatory Commission (EMRC)

Renewable Energy Policies and Regulation in Electricity Sector

Presented by: Eng. Wijdan AlRabadi Commissioner

Energy and Minerals Regulatory Commission (EMRC) Phone: +962 6 5805000 Ext.213 Fax: +962 6 5805003 P. O. Box: 1865 , 11821 - Jordan [email protected] www.erc.gov.jo Energy Situation

The Main Challenges of Energy Sector in Jordan

Jordan is facing a real challenge in securing of energy supply due to:

 Almost no indigenous energy resources 3%  Highly dependency on imported energy…(97% import in 2012) Domestic Resources  High cost (The energy imports accounted for 18% of GDP in 2012)

 High growth of primary energy demand. Imported Energy Features 97%

Jordan is considered as a hub and transit country and can play a major role linking oil, gas and electricity network among the region.

The country has a huge potential of :

Utilization (Wind, Solar)  Energy Resources (, Uranium)  In regard of oil and gas, Jordan has not been explored yet

Energy Situation

Energy Demand Jordan witnesses high growth of energy demand

Period Electricity Demand Primary Energy Demand Growth (%) Growth (%) (2008-2020) 7.4 5.5

Energy Strategy ( 2008-2020)

MAIN GOALS :  Diversifying the energy resources  Increasing the share of local resources in the .  Reducing the dependency on imported oil  Enhancing environment protection This will be achieved through :  Maximizing the utilization of domestic resources (Oil shale, Natural gas, etc.)  Expanding the development of Renewable Energy projects  Generating electricity from nuclear energy

General Electricity Law (GEL) – Nº64 – 2002

Separation of Policymaking, Regulation and Industry Operations

• Set and prepare the general policies of the sector Ministry of Energy and Mineral Resources • Cooperation with other countries • Promote the use of renewable energy for generation (MEMR) • Recommend Council of Ministers to advance to a more competitive electricity market Policy

Energy & Mineral Regulatory Commission (EMRC) Regulation

Generation

Transmission Industry Operation

Distribution/Retail

4 Energy and Minerals Regulatory Commission (EMRC)

•Energy and Minerals Regulatory Commission (EMRC) A governmental body that possess a legal personality with financial and administrative independence and is considered the legal successor of the Electricity Regulatory Commission (ERC) and the Jordan Nuclear Regulatory Commission (JNRC) and the Natural Resources Authority (NRA) in relation to its regulatory tasks according to law No. (17) for the year ( 2014 ) regarding the restructuring of institutions and governmental organizations.

Electricity

Renewable Nuclear & Energy Radiation

Regulatory Sectors

Mining Oil Shale

Gas

EMRC Plays the main role in the regulatory framework related to Jordan Electricity Sector through many duties & responsibilities:  Issue Licenses: Generation, Transmission, Distribution, System operation and Bulk Supply.  Issue Sector Regulation (Codes, instructions, directives).  Determine Electricity Tariffs and connection charges.  Participate in Setting the technical and environmental standards.  Recommendations to advance for competitive electricity market. 5 Hierarchy of the Regulatory Framework “Electricity Sector”

Government (MEMR) Responsibility •Electricity Law •REEE Law EMRC Responsibility Licensees Responsibility By Laws Codes

Licenses

Tariff Methodologies Directives & Orders

Standard Agreements Licensees

Bilateral Agreements CURRENT STRUCTURE OF ELECTRICITY SECTOR

SEPCO Embeded Gen. G 3.5 MW Bio Gas PP

400,132 Kv G

G S&M S&M Consumers G JEPCO

Bulk

Supply Kv

CEGCO G 132/33 Kv 0.4

TNSP , IDECO 11

G SO , 33

1PP1 N EPCO EDCO G IPP2

G IPP3 10 MW PV G G Principle Consumers IP P4

117 MW Wind Renewable Energy Regulatory Framework

RE & EE Law N⁰13, 2012 The Law was issued in April 2012 and has been amended 2014

(1)- Tax Exemptions By-law Cabinet (2)- Direct Proposal By-law

(3)- RE & EE Fund By-law (1)- Reference Price List That includes the indicative prices for each type of Renewable Source Tech. (2)- Sale of Electrical Energy generated from EMRC Small RE Systems (Net Metering – Roof Tops)

(3)- Cost of Connecting RE Facility to Distribution Grid (4)- Electric Power Wheeling Directives

(1)- Generation License Procedures (2)- Standard Generation License (Dis. / Trans.) (3)- Standard Grid Connection Agreement (4)- Grid /Distribution Codes 8

Renewable Energy Development

Jordan is currently engaged with a Five- Target track approach to develop RE Projects: A target of 10% renewable energy input into the energy mix

schemes 1. Direct Proposals 2. Competitive Bidding by 2020 is set in the National Energy Strategy, mainly aiming 3. EPC Turn-Key for about 1000MW of Wind and 4. Energy Net-Metering 600MW Solar. 5. Electrical Power Wheeling

A well-founded reference price list (ceiling prices) for different Renewable technologies Set by EMRC Tariff Tariff RE licences progress RE source JOD FILS/ kWh US $ C / kWh Technology MW No. of Licenses Wind Energy 80 11 Wind 117 1 Thermal Solar Energy (CSP) 135 19 PV 100 14 PV 210 13 Bio mass 90 12.7 Total 327 14 Bio gas 60 8.5 Direct Proposals Approach Round 1: • (12) Solar PV proposals were received in March 2013 with total capacity of (200) MW. PPAs signed in March 2014, financial close finished by the end of May 2015.

• Tafila wind project of (117) MW capacity is currently operational (Sep. 2015) – Connected with NEPCO Tafila Wind Project (JWPC)

• Solar PV project of (10) MW capacity in Mafraq area is currently operational (Oct. 2015) – Connected with IDECO.

• Wind Proposals of this round with total capacity of about (230) MW, in addition to a proposal from the first ranked bidder for the (89) MW IPP Wind Project at Fujei, have been received by the end of September 2014. 1 PPA (80 MW) have been signed others to be signed very soon. Mafraq PV Project (ALBADIA)

Round 2: • Launched in August 2013, (83) Applications received on14 November 2013 for PV projects (50 MW capacity each), out of them (45) MOUs have been signed. • (34) Solar PV proposals were received in February 2015, (24) of them technically qualified in May 2015. • PPAs have been signed with the top 4 ranked bidders where (200) MW is allocated for this round. Competitive Bidding Approach

Several projects are under investigation by MEMR to be tendered on public lands on due time, pending on grid capacity availability.

EPC Turn-Key approach o (66) MW Wind project at Maan, expanded to (80) MW, funded through a Grant from the Kuwaiti Fund (USD 150 million), and awarded to a Spanish contractor (Elecnor), is currently under construction to be operational by Mid-2016. o (65-100MW) Solar PV Project at Quweira/, funded through a Grant from Abu Dhabi Fund (USD 150 million) is currently under re-bidding process. o Two Solar PV Projects with total capacity of (5.2) MW have finished construction at Azraq, in cooperation with the Spanish Government, and are currently operational.

Azraq 5.2 MW Solar PV Project

Renewable Energy – Energy Net-Metering Applications

Acc. Net-Metering 33 MW Operated Systems at the end of Nov 2015 1285 Meters

Net-Metering Expected at end of 2015 ≈ 50 MW

Wheeling Scheme Expected at Mid of 2016 ≈ 50 MW Ongoing Grid Reinforcement Plans by NEPCO “Green Corridor-south region”

Between Aqaba and Qatranah

With PH2 of Green corridor (2020)

1500 MW

650 MW With PH1 of Green corridor (2018)

350-400 MW Are there energy investment policies specific to rural areas at national and/or international level?. 1. The Electrification rural areas Program. 2. subsidy the electric tariff 3. Installing PV systems for heating and air conditioning in coldest areas. 4. Off grid renewable technologies provide a sustainable and cost-effective alternative to the diesel generators that would be typically deployed in such areas. 5. Renewable technologies can also help to displace other unsustainable energy sources. subsidies for renewable appear as the best-suited instrument to promote the introduction of renewable. • Price-based subsidisation: the feed-in tariff (FIT). FITs • Quantity-based subsidisation: the tradable green certificate scheme (TGC, also known by its US name »renewable portfolio standard« or RPS). Using a TGC, • Creating tax incentives. Tax reductions can promote the introduction of renewable energy in manifold ways

How can Governments of Arab region intervene to improve RE technologies financing situation in rural areas?.

- Mobilizing local financing, aid and grants; foreign direct investments; carbon financing, Global Environment Facility GEF, etc for the renewable energy sector. - Local sources of funding, - use of pensions funds to leverage local bank financing for new projects, - use of emerging local bond markets, - local private sector interest - integrating renewable energy into economic partnerships with Arab region What tools and measures can governments use to make a difference There are several measures can government use to make difference by reporting the number of clients benefit from using Re technologies , evaluation criteria etc. In Conclusion . The Decision makers , taking into account their national circumstances, are encouraged to: (a) Develop and implement appropriate national, regional and international policies and measures to create an enabling environment for the development, utilization and distribution of renewable energy sources in rural areas; (b) Develop domestic programmes to increase the contribution of renewable energies to total energy consumption; (c) Encourage the role of the private sector in the development and utilization of Re technologies, through the provision of appropriate incentives and regulation; (d) Strengthen research, development, demonstration and institutional capacities in the field of RE utilization. (e) Promote the utilization of renewable natural resources, such as solar, wind, biomass, etc to meet part of the energy needs for sustainable development; (f) Strengthen information networks, compilation and dissemination systems and public awareness programmes on renewable energy sources and technologies; (g) Develop and use indigenous sources of renewable energy, where appropriate; (h) Develop and implement measures to make renewable energy technologies more affordable; (i) Strengthen financial support to developing countries for the promotion of renewable energy.

Thank you

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