In 2024, Jordan made significant advancements in its solar photovoltaic (PV) sector, reflecting its commitment to expanding renewable energy and achieving greater energy independence. Below is an overview of the key developments and milestones:
Installed Solar PV Capacity
According to annual reports by Jordan’s grid operators, the total installed on-grid solar PV capacity reached 2,073.86 MW by the end of 2024. This capacity is divided as follows:
- Distribution System Operators (DSOs): 1,081.86 MW across 74,145 projects.
- Transmission System Operator (TSO): 992 MW.
The largest DSO-managed installations were by:
- Jordan Electric Power Company (JEPCO): 591.44 MW (32,257 projects).
- Irbid Distribution Company (IDECO): 309.32 MW (28,588 projects).
- Electricity Distribution Company (EDCO): 181.10 MW (13,300 projects).
Market Dynamics
The global decline in solar PV system prices fueled strong demand for installations during the first half of 2024. However, regulatory changes led to a temporary halt in installations for three months until new grid connection mechanisms were finalized in September 2024.
Policy and Regulatory Updates
- Revised Renewable Energy and Energy Efficiency Law (Law (12), year 2024):
- Issued in June 2024, this law introduced a transition from the Net Metering system to a new Net Billing system, tailored to sector-specific requirements.
- New connection mechanisms were introduced under Bylaw (58), year 2024, enabling four distinct connection mechanisms for on-grid solar PV systems.
- Grid Connection Fees and Tariffs:
- Electricity consumers below 300 kWh/month can install systems under the “Buy All-Sell All” mechanism without grid fees.
- The commercial sector faces higher grid fees of 13 JD ($18.3 USD) per kWac/month, reducing the economic viability of installations.
- Removal of 1 MW Cap:
- In September 2024, Jordan’s Council of Ministers lifted the cap on solar PV project sizes, enabling large-scale installations. A notable example is a 50 MW solar power plant financed by Cairo Amman Bank and currently under construction.
- Time of Use (ToU) Tariff:
- Time of Use (ToU) Electricity Tariff: Starting 1st of July 2024, the Energy and Mineral Regulatory Commission (EMRC) issued a time of use tariff for six sectors. These sectors are; Water, Electric Vehicle charging stations, Electric Vehicle private meters, telecommunication, large industrial, mining industrial and small industrial. The electricity tariff for these sectors will change during the day with an off-peak tariff between 05:00 – 14:00, a partial peak tariff between 14:00 – 17:00 and 23:00 -05:00 and a peak tariff between 17:00 – 23:00. For example, the electric charging stations (without commission) electricity tariff during the peak period is 0.133 JD/KWh, and during the partial peak periods it is reduced by 15% to 0.133JD/KWh and during the off-peak period it is reduced by 23% to 0.103 JD/KWh. The main reason for implementing the ToU tariff is to change the behavior of the end consumer to use more electricity during the sun peak hours because more electricity is generated on grid from solar PV, and this driver will reduce the gap between the generated electricity and the demand to avoid the costly action of shutting down of the conventional power generating units.
Operational Highlights
- Improved Solar PV Efficiency:
- The Energy and Mineral Regulatory Commission (EMRC) raised the average specific production to 1,800 kWh/kWp. The DC:AC ratio was standardized to 1.5:1 for single-phase systems and 1.2:1 for three-phase systems.
- O&M Sector Growth:
- Since Jordan started the solar PV installation in 2012, the demand for solar PV operation and maintenance (O&M) services increased, driven by aging systems requiring inverter replacements (every 8-10 years) and system optimization.
- Robotic cleaning for solar PV systems is gaining significant traction, driven by the increasing need to maximize electricity generation from existing plants and new installations. This trend is further supported by the declining capital costs (CAPEX) of solar PV systems, making efficient maintenance solutions like robotic cleaning more appealing and cost-effective.
- Government Support Initiatives:
- JREEEF Subsidy Program: Continuing its 30% subsidy for residential single phase (up to 3.6KWac) rooftop systems, with around 10,000 systems approved to date.
- Social Welfare Installations: Through the Fils-il-Reef program, MEMR supported families on social welfare and injured retired military personnel with free 2.7 KWac systems, reducing energy costs for 30 years.
Renewable Energy Milestones
- Increased Renewable Energy Share:
- By the 3rd quarter of 2024, renewable energy contributed 28.2% to Jordan’s electricity generation mix. MEMR aims to raise this target to 50% by 2030, with updates showing in the national energy strategy expected by end 2025.
- Smart Grid Integration:
- Approximately 50% of Jordan’s grid now operates with digital meters, enabling real-time monitoring and the implementation of ToU tariffs. It is expected to reach 100% by end 2025.
- Off-Grid Systems Expansion:
- Cost reductions have increased the popularity of off-grid solar PV systems, particularly in rural areas, farms, and tourist sites relying on diesel generators.
Future Outlook
Jordan is poised to become a leader in renewable energy adoption, with significant policy reforms, growing private sector participation, and ambitious targets for 2030 and beyond. The upcoming Jordan Energy Strategy 2025–2035 will further solidify the country’s position as a renewable energy pioneer in the Middle East.
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