Employment of renewable energy in Jordan: Current status, SWOT and problem analysis

Abstract

The aim of this investigation is to assess the current status of renewable energy sources and systems in Jordan and develop a matrix of strength (S), weakness (W) as internal issues and opportunities (O) and threats (T) as external factors. The SWOT analysis will hopefully yield a good basis for formulating a policy advice regarding enhanced utilization of Renewable Energy in Jordan by using problem tree analysis. The conducted analysis was developed through a series of face-to-face meetings with all concerned stakeholders from the public as well as the private sectors, using a semi-structured questionnaire, taking into account the government plans to increase the contribution of renewable energy in the national energy mix to reach 10% of the total energy consumption by the year 2020. After collecting and analyzing the notes, strong points were grouped in a matrix together and same for weakness, opportunities and threats. Among the most important weaknesses that may hinder efforts in developing renewable energy sources in Jordan are (i) the available financing schemes and (ii) the future price of electricity generated by renewable sources. It is still uncommon, in Jordan, to find banks׳ that have special financing programs, with reduced service charges, to support renewable energy and energy efficiency projects. Equally important is that the Jordan Renewable Energy & Energy Efficiency Fund (JREEEF) which was created, in 2012, to contribute to the development of renewable energy and energy efficiency in Jordan, is still not operational, yet. Without providing needed support for renewable energy through public awareness and training, project preparation, access to credit, cost of financing and access to equity financing, the national goals may not be achieved. The study concludes that the policy regarding Renewable Energy should focus on a commitment to a phased approach involving an investment program that exploits the cost and technical potential of each RE technology option is very much needed. Moreover, the government needs to remove obstacles and facilitate on-going projects as a matter of urgency, reaching a state of stakeholder buy-in engaging with the RE projects, picking the lowest hanging fruit with the immediate launch of projects that eat away at the peak demand, and finally encouraging technological innovation.