Revisiting the Regulatory Framework: A Necessary Action to Promote the Deployment of Renewable Energy Sources for Electricity in Jordan

Abstract

Jordan has been suffering from dependence on imported energy for decades and the recent geopolitical situations in its neighbouring countries have affected its energy security, allowing only an intermittent supply of imported fuels to Jordan.Moreover, the consequent volatility of fuel prices resulted in immense debt for the National Electricity Company in 2013. To manage these crises, the Jordanian government aims to diversify Jordan's energy sources and to promote local energy production. It has begun a gradual reduction in subsidies for fossil fuels and it has prepared legal and financial forecasts based on the strong potentials of solar and wind power. Despite its adoption of economic instruments, such as net metering and auction provisions, the government did not achieve its targeted 7% of energy from renewable sources by 2015. To ensure the achievement of the target of 10% by 2020 and the effective implementation of the plan for green growth, Jordan's energy laws and policies need to be revised continuously.