Energy cost ratio to GDP down to 10% last year

AMMAN — The cost of imported energy in Jordan for 2016 stood at 10 per cent of the gross domestic product (GDP) while in 2014 the ratio was around 18 per cent, the Jordan News Agency, Petra, quoted Energy Minister Ibrahim Saif as saying Saturday. 

Speaking during a session of the seventh meeting for the International Renewable Energy Agency (IRENA) in Abu Dhabi, Saif said that renewable energy "is no longer a luxury", but has become competitive and less costly because of technological advancement. 

The minister said Jordan has developed a legislative environment that attracts investment in the field of renewable energy over the past few years, adding that improved legislation has helped lure renewable energy projects, mainly relying on solar and wind powers, with a total capacity of 1,500 megawatt (MW). 

The projects will contribute to around 20 per cent of electricity generation in 2020, thus meeting the goal set by the 2007-2020 Master Strategy of the Energy Sector, according to the minister, who chaired the international meeting.

The legislative reforms, he noted, were reflected in the Renewable Energy Law, which “enabled public and private institutions as well as households and trade and industry sectors to rely on renewable energy systems for their consumption needs and reduce their electricity bills”.

Countries that import energy are facing huge challenges and economic burdens as a result of what the energy market is currently witnessing of increasing demand and fluctuating fuel prices, the minister said, noting that Jordan depends on imported energy for 97 per cent of its needs.

Saif highlighted Jordan’s December invitation of expressions of interest in building six wind and solar energy power plants with a total capacity of 300MW. 

Jordan, as a permanent member of IRENA, is looking forward to more cooperation with member countries through the agency and will continue supporting the initiatives and programmes launched by the agency, Saif said.