Jordan [Financial Modelling and Risk Analysis in Participating Member States (Case Studies)]

Over the last decade, electricity consumption grew at an annual rate of 5% in Jordan, to reach 19.0 TWh in 2017. Per capita electricity consumption is about 1.9 MWh/year. Generation is dominated by fossil fuels, with gas and oil having the largest share (respectively 80% and 13% in 2017). The contribution of renewable sources (solar PV, wind and hydro) is increasing in the last few years, but remains limited to 1.4 TWh, i.e. about 7% of the total generation. In 2017, the total generating capacity amounts to over 3800 MW and is expected to increase to 8000 MW by 2030, when electricity consumption is projected to double. Key energy policy objectives in Jordan are to increase energy security, lower the electricity generation cost and reduce the reliance on imported fuels; Jordan imports about 95% of its energy needs, at a cost close to the 20% of its GDP. In 2012 and 2013, natural gas supply constraints from Egypt caused a significant reduction in generation from gas plants, which previously provided most of electricity generation. In this biennium, heavy fuel oil and diesel provided the bulk of electricity generation (84% and 74%, respectively), and electricity imports grew significantly.