Jordan Sees a 10% Drop in Applications for Electricity and Renewable Energy Licenses

The Energy and Minerals Authority has reported a significant 10% decrease in applications for licenses related to and during the first nine months of this year when compared to the same period last year. This data sheds light on the evolving landscape of renewable energy projects in the region.

From January to September this year, there were 257 applications for licenses in various aspects of electricity and renewable energy, in contrast to the 285 applications received during the corresponding period in the previous year. These licenses are pivotal for companies involved in generating electrical energy through renewable sources, especially for projects exceeding 1 megawatt in capacity. The Authority maintains rigorous inspection programs to ensure strict compliance with legal and licensing requirements.

A monthly breakdown reveals an interesting trend – in September, there was a notable increase in license requests with 48 applications, up from 33 in the same month the previous year. These requests encompass permits and licenses for stations and individuals, including both initial issuance and renewals.

In the last month alone, the Authority received 27 applications for licenses or permits, including 22 permits, two licenses for public charging stations, and three licenses for individuals. Furthermore, 21 applications were for the renewal of licenses, with 18 pertaining to individuals and three for public charging stations.

Out of 883 applications submitted to the Authority last month, an impressive 881 were accepted, with only two facing rejection due to non-compliance. This compares to 858 applications received during the same month the previous year, with 850 approved and the remaining rejected due to non-compliance issues.

Renewable energy has been gaining prominence in Jordan's energy landscape, accounting for approximately 29% of the total electricity generated in the country's electrical system in 2022. Within this, 19.3% was sourced from renewable energy projects connected to the national transmission network, boasting a total installed capacity of approximately 1,579 megawatts. This capacity comprised 1,468 megawatts from energy purchase projects and 111 megawatts from transit and net metering projects.

It's noteworthy that the Jordan Energy and Minerals Authority has also initiated the implementation of a network services fee of two dinars per kilowatt per month for net metering systems used by subscribers, institutions, and government departments benefiting from renewable energy sources systems, starting from April 1 of the preceding year. This step aims to ensure the sustainable growth of renewable energy projects while managing the associated costs effectively.

This decline in license applications, juxtaposed with the growing importance of renewable energy in Jordan's energy mix, underscores the evolving dynamics and challenges in the country's energy sector. Stakeholders and industry experts will be closely monitoring these developments in the coming months to gauge the implications for Jordan's energy transition.

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