Energy
From The Report: Jordan2015
View in Online Reader

As Jordan has historically imported the majority of its energy needs, the drop in global oil prices between mid-2014 and early 2015 will have a positive impact on the kingdom’s near term energy bills and on its trade deficit. However, the kingdom is also set to diversify its energy sources moving forward. As part of its National Energy Plan, Jordan hopes to see 29% of total energy needs met by natural gas by 2020, 14% by oil shale and 6% from nuclear energy. The plan also aims to generate more than 15% of total projected energy requirements via renewable resources. Indeed renewable energy activity has seen a sharp uptick in recent years, guided by sector-specific legislation and a raft of new solar and wind projects, with close to 1000 MW of solar and wind projects under development.

This chapter contains an interview with Ibrahim Saif, Minister of Energy and Mineral Resources.

Articles from this Chapter

Overview

Diverse interests: The kingdom is reducing reliance on hydrocarbons
OBG
plus

Jordan does not hold significant reserves of crude oil and natural gas, and has historically imported the majority of its energy. This has been especially disadvantageous in recent years, as regional volatility has affected gas supplies from Egypt and scuttled a planned pipeline to Iraq, while high oil prices had until recently resulted in the government spending up to 20% of annual GDP on energy imports. However, with global oil prices dropping by over 50% between mid-2014 and early 2015, the country…

Interview

REEL progress: OBG talks to Ibrahim Saif, Minister of Energy and Mineral Resources
OBG
plus

Interview:Ibrahim Saif How can Jordan capitalise on lower energy prices? IBRAHIM SAIF: As Jordan imports 97% of its energy, a drop in oil prices is a welcome trend that reduces the energy burden. It also decreases the cost of generating electricity, which until recently had been reliant on heavy fuel and diesel. In 2014 Jordan consumed almost 50m barrels of oil, so a drop of $1 in price has a considerable effect on the economy. We are using the drop in price to reduce the government’s deficit,…

Analysis

Seeking alternatives: New legislation is supporting efforts to launch renewable energy projects
OBG
plus

With Jordan importing an estimated 97% of its energy needs, costing up to 40% of its annual budget in recent years, development of renewable energy has become a top priority for the kingdom, particularly wind and solar power, with Jordan’s dry, sunny climate and windswept northern and eastern regions offering the perfect locale for wind turbine and photovoltaic (PV) solar projects. “For too long, Jordan has relied on a limited number of external sources for energy,” Thomas Meijssen, CEO of…