Invest in
Jordan
Take advantage.
Turn to Jordan.
Dr. Bashar Al-Zu’bi
Senior Advisor to the CEO
March 2012
and presents
clear enablers
to help your
business grow.
Political Stability, Growing, Robust
& Stable
Security & Vision
Economy
Skilled &
Talented Human
Capital
Modern & Well
Connected
Infrastructure
Favorable
Business
Environment
Intellectual
Property
Protection in
Line with WTO &
International
Standards
The Jordan EWE &
clean energy
advantage.
The right place. The right time.
Page 3
Consider your
home energy
challenge
No indigenous
energy resources
High dependency on
imported energy
Our
Challenge
In Jordan
Primary energy demand is
expected to double between
2008 and 2020
High cost to the economy with
energy imports accounting for
more than 13% of GDP
4
As your
investment
opportunity at
your own home.
In order to achieve our transformational master energy plan, we are investing over
$18bn in our energy sector
$2,400
Natural Gas
$6,000
$4,000
Enegery Efficiency
$150
Power Sector
$2,000
$5,800
$0
Oil Shale
Oil
$3,800
$3,400
Renewable Energy
$2,100
Your opportunity to leverage our strategic focus on the top half of the green energy value
chain covering opportunities in assembly, installation, integration, testing and support
With a fast growing local market acting as your test bed and a strategic geographical
location providing a launch pad to the region, Jordan is the natural home for your energy
investment
5
Energy
Master Plan
2008
Imported
Electricity,
2%
Natural
Gas, 36%
Renewable
Energy, 2%
Oil, 60%
Imported
Electricity,
1%
Natural Gas,
29%
Renewable
Energy, 10%
2020
Oil Shale,
14%
Nuclear
Power, 6%
Oil, 40%
Opportunities
Oil Shale
– Jordan’s reserves of oil
shale are estimated at 40
billion tonnes
– There are 23 known
surface and near-surface
deposits scattered across
the central/southern
area
– Opportunities exist for
Production Share
Agreements to extract
oil from the oil shale
deposits, in addition to
power generation from
direct combustion
Opportunities
Nuclear Energy
– Jordan is estimated to have 2% of the world’s uranium
deposits
– Up to 65,000 tonnes are in the form of surface sediment
– Approximately 100,000 tonnes are in phosphate deposits
– Jordan is a signatory of the Nuclear Nonproliferation Treaty
and has nuclear cooperation agreements with many
countries including: France, Russia, U.K, Spain, Italy,
Romania, Turkey, Canada, Japan,
S.Korea, China, and Argentina.
– AREVA was granted exploration and mining rights in 2008
– Talks are ongoing with two Australian companies to finalize
a deal for uranium exploration in the southern regions of
Jordan
Opportunities
• Wind Energy
– Several areas with wind speeds exceeding
7m/s
– New projects are underway or being
negotiated:
• Al Kamshah – 40MW
• Fujeij – 90MW
– Opportunities for other sites like Al-Harir,
Wadi Araba and Ma’an for wind farms with
a capacity of 300 – 400 MW
Opportunities
Solar Energy
– Jordan is located within world solar
belt with 300-320 days of full
sunshine and low humidity, with
solar irradiation levels of
2600Kwh/m2
Opportunities
• Solar Energy
– Currently 14% of households use solar
water heating, and it’s expected to grow to
20% by 2013.
– 300 MW of concentrated solar power
generation will be added to the energy mix
by 2020.
– Jordan’s transmission network is
connected to the MENA region and EU.
– Jordan has one of the highest engineers
per capita ratio, around 1 engineer per 71
inhabitants.
and to help
you, JIB has
identified
several
projects that
offer attractive
rates of return
that are above
deposit rates.
Turnkey Solar Equipment Packager
Investment
(millions USD)
District Energy Company
56.4
Concentrated Solar Power Generation
91.8
5.9
Landfill Gas Power Plant
16.0
Polysilicon Production
193.3
Gas Station Chain
3.7
30.8
High-Density Insulation
5.9
Automated Solar PV Cell Production Line
2.7
Wadiaraba Wind Farm
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
12
Reasons to
Invest in
Jordan
• Safe and stable economic environment
with investor-friendly laws.
• Solid and transparent regulatory
framework.
• EWE Projects benefit from the
Investment Law (Custom and Sales
Taxes Exemption)
• 5% corporate income tax (Development
Zones)
• Modern and well-connected
infrastructure
Investment
Incentives
–
Regional
Indicators
14
Regulatory
Framework
–
Main Articles
• Independent Power Producer (IPP)
Framework
• Tendering of RE Projects:
Authorizes MEMR to issue public
tenders on competitive basis for
development RE projects at specific
sites in accordance with MEMR’s
development plan.
Permits direct proposals complying
with certain conditions (Complete Phase 1
as 64 tenders have been submitted).
15
Regulatory
Framework
–
Main Articles
• Obligation to purchase renewable
energy: All Energy Output from RE
projects must be purchased
pursuant to Power Purchase
Agreements (PPA).
• Interconnection
and
Licensing
Incentives: National Electric Power
Company (NEPCO) to interconnect
and
assume
the
costs
of
interconnection line between the
project and the nearest substation.
16
Regulatory
Framework
–
Main Articles
• Establishing a Renewable Energy &
Energy Efficiency Fund:
• provide good financial framework to
support energy efficiency programs and
renewable energy projects, to help achieve
the targets set in the Energy Strategy; 10%
renewable and 20% energy savings by
2020 .
• Funding resources are annual Budget
allocations and Foreign donation.
17
New Initiatives
Royal Scientific Society, JEDCO and Petra
Solar agree to advance Smart Solar Energy
plan
• The plan, called Let Jordan Shine, will help create a
more sustainable future for Jordan and will help Jordan
diversify its energy generation sources.
• Through their collaborative efforts, Petra Solar's
SunWavea Smart Solar systems will be installed on the
first 1,000 homes of the Tafileh Governorate Project,
which will consist of 20,000 homes across the
governorate.
• This agreement comes within the plans of the
government to develop infrastructure and to create
renewable energy projects in the governorates.
18
New Initiatives
Shams Maan’s Project
• The first large-scale private sector renewable energy
generating project in Jordan.
• Carried out by a consortium comprising Amman-based
Kawar Energy and Italian firm Solar Ventures and is
estimated to cost up to $400 million.
• Once operational, is expected to have an initial
generation capacity of 1,600 to 2,200 kilowatt hours
per year, approximately 1.2 per cent of the country’s
current electricity generation.
19
Rethink market
access and invest
in new
opportunities.
Thank you.
Take advantage.
Turn to Jordan.
20