Jordan sets model for renewables

12 June 2014

Amman has progressed with 12 solar projects, paving the way for other countries in the region to follow suit

The signing of agreements with 12 developers for solar projects in Jordan is the latest sign the Middle East and North Africa region is getting serious on renewable energy. It also shows Jordan can provide a blueprint for the other countries planning ambitious renewable energy programmes.

In addition, the conclusion of negotiations is a step forward for the utilisation of the public-private partnership model for renewable projects in the region, with the vast majority of solar schemes currently under way having been tendered as standard construction contracts.

The 12 solar projects make up the first phase of Jordan’s direct proposal programme, under which companies submit proposals to develop solar or wind projects and, following government approval, implement them on a build-own-operate model.

Jordan is one of only three countries, along with Iran and Algeria, in the region to have established a defined feed-in-tariff (the amount to be paid for renewable energy by third parties) and other governments will be able to use its framework to set their procurement methods for renewables projects.

Progress with the direct proposal programme has not been without hitches, with setbacks in implementing important legislation leading to delays with procurement. But the signing of the power purchase agreements for the first phase will breed confidence that the second and third rounds can be executed as planned.

With Dubai preparing to tender the 100MW second phase of its Mohammed bin Rashid al-Maktoum solar park as an independent power project, and Saudi Arabia still in the early stages of planning its ambitious 54,000MW renewables programme, the region is just beginning its journey with alternative energy. Governments, utility providers and international firms will be looking at Jordan to see if their plans can become a reality.

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