The national energy policy aims at performing adequate energy provision for sustainable development with the least cost.

To reduce heavy burden on Jordan’s economy, the future strategy is based on exploitation of all available local energy sources in an attempt to minimize reliance on imported energy as far as it is feasible. The strategy is comprised of the following:

• To ensure security of supply of all energy forms and strengthening regional interconnections for electricity and gas.

• To diversify energy sources such as gradually replacing fuel oil in different industries and electricity generation.

• To enhance the utilization of local energy resources especially uranium and oil shale.

• To increase the share of renewable energy in the total energy mix.

• To adopt the principles of privatization to alleviate the administrative and procedural restrictions in order to allow the private sector to invest and produce according to the market forces in a competitive environment.

• To attract international oil and gas companies to explore in Jordan

• To formulate pricing policies and improve pricing levels and structures.

• To reform the petroleum sector by liberalizing petroleum, rationalizing pricing and tax structure and dismantling monopolies.

• To promote energy efficiency to reduce energy intensity and rationalize demand growth.

Table 1. ESTIMATED AVAILABLE ENERGY SOURCES

*Solid, Liquid: Million tons; Gas: Billion m³; Uranium: Metric tons; Hydro, Renewable: TW.

Source: Ministry of Energy and Mineral Resources, 2015

Table 2. ENERGY STATISTICS

*Latest available data.

**Energy consumption = Primary energy consumption + Net import (Import - Export) of secondary energy.

***Solid fuels include coal, lignite.

Source: National Electric Power Company, 2016

Ministry of Energy and Mineral Resources, 2016

The major power entity in the country, Jordan Electricity Authority (JEA), was owned by the Government. It was the main electric power monopoly for the generation, transmission and distribution of centralized grid power. To promote greater efficiency and sustainability in the system, a process of reforms has been started to remove government’s monopoly on generation, transmission and distribution. In 2001, the Jordan Electricity Regulatory Commission (ERC) was established, which is mandated to regulate the electricity sector based on free market economic principles and thereby create a level playing field for participation of all interested stakeholders. The tasks of the ERC were taken over by the Energy and Minerals Regulatory Commission (EMRC) in 2014.

As a consequence of the reform process, the generation and distribution areas of the electricity market are being deregulated. Three separate generation companies and three distribution companies were established for the various parts of the country. These would be individually licensed, while only the transmission area would remain under the government controlled National Electric Power Company (NEPCO).

Energy and Minerals Regulatory Commission (EMRC)

The Energy and Mineral Resources Regulatory Commission is a financially and administratively independent commission; EMRC was established based on the Council of Ministers decision in 2014.

EMRC responsibilities include the following:

• Regulating the sector on the basis of balance between the interests of the consumers, licensees, investors and any other relevant parties, including the regulation and monitoring of the uses of the nuclear, radioactive and ionized radiation energy sector.

• It ensures that the conditions and requirements of public safety, radiation protection, and nuclear safety and security are in place, and works on protecting the environment and human health and properties from the risks of contamination and exposure to ionized radiations.

• It also aims at attending to the interest of electricity consumers, provided the compliance thereof with the conditions on provision of services issued by the licensees and approved by EMRC, as well as at maintaining an active structure for the sector and developing the same in a manner that contributes to and promotes its economic feasibility thereof enhances the efficiency thereto.

• Ensuring the provision of safe, stable, ongoing, quality and adequate services while ensuring the compliance of enterprises working in the sector with the standards of environmental protection instructions and laws and the general safety conditions applicable in the Kingdom.

• It aims at regulating the best utilization of mineral resources, including the extraction and excavation of stone minerals, investment in minerals, and setting and preparation thereof for marketing.

National Electric Power Company (NEPCO)

National Electric Power Company is considered to become the natural and legal successor to Jordan Electricity Authority, which was established in accordance with special Decree No. 21 of 1967 with an independent financial and administrative existence. In order to enable the new company to perform its activities, 1996 Decree No 10, subsequently amended by Decree No 13 of 1999, was issued to regulate the electricity sector in Jordan. Accordingly, the NEPCO was restructured into three separate companies. The government maintained the ownership of the activities of transmission, power control, power purchase and sale and power exchange with neighboring countries. NEPCO’s activities include the following:

• To plan, construct, develop, operate and maintain the power system.

• To purchase electrical energy from various sources and sell it to distribution companies and large consumers (Single Buyer).

• To procure natural gas for power stations.

• To maintain a safe and economic operation of the power system.

• To import and export electric power.

• To award contracts for new generation capacities.

Central Electricity Generating Company (CEGCO)

The operation of the Central Electricity Generating Company (CEGCO) started on 1/1/1999 as a public company stemming from the governmental policies related to restructuring the electrical sector. On September 20th, 2007, CEGCO was privatized. Energy Arabia (Enara), a company established by Jordan Dubai Energy, the energy investment arm of Jordan Dubai Capital, announced the purchase of 51 % of total shares, the Government of Jordan retained 40 % and the remaining 9 % of shares were transferred to the investment unit of the Social Security Corporation. CEGCO currently owns about 1600 MW of generation capacity and its activities include power generation, operation and maintenance of their power plants.

Samra Electric Power Generation Company (SEPGCO)

Samra Electric Power Generating Company (SEPGCO) was established and owned by the Jordan government in August 27^th, 2003 under the provisions of the Corporations Law No 22 of 1997. SEPGCO currently owns 500 MW of generation capacity and its activities are similar to that mentioned in CEGCO’s section.

AES Jordan PSC Company

In April 2007, AES expanded its operations into Jordan, where it is constructing the country’s first independent power project, a 370 MW combined cycle gas-fired (CCGT) power plant located on the boarders of Amman. The project, called AES Jordan PSC (also known as the Amman East Power Project) started commercial operation in September 2009.

Jordan Electric Power Company (JEPCO)

JEPCO was established by the private sector in 1938. JEPCO is an electricity distribution company with a concession that covers the central part of Jordan. The concession gives the rights to JEPCO to distribute electricity in an area that includes major cities such as Amman, Zarqa, Salt and Madaba.

Irbid District Electricity Company (IDECO)

Irbid District electricity Company (IDECO) was established in 1957. It is operating under concession agreement and electricity license which granted IDECO the exclusive right to distribute, and supply electricity in the northern region of Jordan, which includes Irbid, Jarash, Ajloun and parts of Balqa district. The company has been privatized by selling 55.4 % of its shares to Kingdome Electricity Company (KEC,) which is owned by Dubai Capital Company.

Electricity Distribution Company (EDCO)

Electricity Distribution Company (EDCO) was established in 1998 as a public shareholding company. The company operates under concession law which granted EDCO the exclusive right to distribute and supply electricity in the southern region of Jordan. EDCO was privatized in 2008 by selling 100 % of its shares to Kingdome Electricity Company (KEC) which is owned by Dubai Capital Company.

Table 3. ELECTRICITY PRODUCTION, CONSUMPTION AND CAPACITY

Source: National Electric Power Company, 2016

Table 4. ENERGY RELATED RATIOS

*Latest available data.

 **Net import / Total energy consumption.

Source: National Electric Power Company,2016

Ministry of Energy and Mineral Resources, 2016

Historically, the Jordan Nuclear Energy Commission (JNEC), an agency whose board of directors was chaired by the Minister of Energy and Mineral Resources, was involved in developing a national strategy for the introduction of civilian nuclear power in the energy mix.

In order to prioritize the development of nuclear power, a High Level Ministerial Committee, chaired by the Prime Minister, was established in November 2006 to explore and marshal national efforts for the introduction of nuclear power in the country. The Committee produced a “roadmap” which outlined the strategic goals and activities to be undertaken to implement a nuclear power programme. In essence, the Committee, along with a supporting Technical Group, drawn from various ministries and agencies at the director general or deputy minister level, served the function of the Nuclear Energy Programme Implementing Organization (NEPIO).

A Royal Decree to pursue nuclear power was issued in January 2007, taking into account national goals for energy security and diversification, and a desire to reduce dependence on and uncertainty of imports.

This was accompanied by the allocation of resources for planning and the enacting of National Laws 42/2007 and 43/2007 to establish guidelines and institutions, specifically the Jordan Atomic Energy Commission (JAEC) and the Jordan Nuclear Regulatory Commission (JNRC). In 2014, the JNRC was restructured and merged with other regulatory commissions in Jordan under the name EMRC.

The High Level Committee was replaced by an inter-ministerial committee in 2009, chaired by the Minister of Planning and included ministers of Energy, Environment, Finance, Water and Irrigation Ministries, in addition to Chairman of JAEC and Director General of JNRC. In 2010, a new High Level Committee, chaired by the Prime Minister, was formed, replacing the previous inter-ministerial committee, and in July 2010, decided to establish a NEPIO Steering Committee.

The national organizational structure for the implementation of the nuclear power programme is depicted in Figure 1. As shown in Figure 1, the JAEC has the direct responsibility for the development and implementation of the nuclear power programme. The JNRC regulates, monitors, controls and issues licenses for applications of nuclear energy to ensure nuclear safety and security. Both JAEC and EMRC report to the Prime Minister (PM).

FIG 1. Structure for NPP implementation

Table 5 is not applicable.

Not applicable.

The uncertainty of energy supplies and their increasing costs are severely affecting the growth of Jordan’s economy and the security of energy supplies. Presently, Jordan imports more than 98% of its energy needs. Hence, the development of secure alternative energy supplies is a top priority. Jordan has limited options to substitute for oil products. The main option is imported natural gas which is a short to mid-term option and cannot be relied upon for the long term due to continuous disruptions of the flow to Jordan from Egypt. Consequently, natural gas should be used as a peaking source in the future. Renewable energy will be developed to the fullest possible extent. Oil shale is a medium term solution that generates electricity with limited capacity

Jordan’s energy strategy aims to achieve a sustainable energy system through the diversification of energy resources and the maximum utilization of indigenous energy resources. Jordan’s dependence on a single source of energy to produce electricity has made its economy susceptible to frequent shocks. This has come true following the interruption of the Egyptian gas supply and the need to replace it with more expensive fossil fuels to produce electricity. The energy strategy outcome was to adopt the nuclear option as a viable alternative to produce electricity to constitute 20 percent of the energy mix. Furthermore, Jordan enjoys vast unexploited deposits of uranium throughout the Kingdom that can be utilized as feed material for its nuclear fuel.

Since 2001, Jordan has been developing a national strategy for civilian nuclear power, this strategy aims to:

• Ensure the security of energy supply;

• Diversify the electricity generation sources;

• Provide competitive energy source;

• Reduce the imported fossil fuel bill;

• Exploit the national uranium resources;

• Encourage partnerships between the public and private sectors;

• Ensure the transfer of optimum technology and national worker’s contribution in all stages;

• Develop industries related to the energy sector; and

• Reduce the GHG emissions from power generation.

JAEC issued a Bid Invitation Specification (BIS) in 2011 to international nuclear vendors and received technical and financial bids from three separate vendors: AtomStroyExport (ASE), Areva / Mitsubishi Heavy Industries Joint Venture (trading under the name “ATMEA”) and Candu Energy. On a parallel track, JAEC issued an Investor/Operator bid to attract a strategic investor who will be responsible as well to operate the plant for at least five years. After an initial evaluation, JAEC kept ASE and ATMEA (Areva/ Mitsubishi Heavy Industries Joint Venture) in the bidding process. In August 2013 and following several rounds of clarification with the two vendors, JAEC selected ROSATOM State Corporation (JSC AtomStroyExport) and Rusatom Overseas (RAOS) as the Preferred Bidder (technology vendor, investor and operator). The selection was a result of a technical evaluation that started in July 2011 and a financial evaluation that started in September 2011. The evaluation (methodology) was carried out based on the following criteria:

• Key Factors

• Evaluation Matrix

• Exclusionary Topics

• Best in Class

• Price Normalization (Capital and LCOE)

The evaluation was carried out by a national team composed of JAEC and other ministries with the assistance of International Consultants.

The Jordan Nuclear Power Plant Project (JNPP) is currently envisaged as being composed of two Pressurized Water Reactors based on the Russian AES-92. This design is a Generation III+ advanced light water reactor with one of the highest nuclear safety and security standards. The net-generation capacity is about 1000 MWe per reactor and the plant is expected to be in operation during 2024-2025, with a life time of 60 years.

On behalf of the Government of Jordan (GoJ), JAEC signed the Project Development Agreement (PDA) with RAOS on the 22^nd of September 2014. The PDA identifies project-specific activities to be carried out by both parties during the development phase as well as specific criteria for the investment decision. On the 24^th of March, 2015, the GoJ and the Government of the Russian Federation signed the Inter-Governmental Agreement (IGA) on cooperation for the construction and operation of the NPP.

The Project is being implemented using a two-phased approach. Phase I (Pre-Investment Phase (PIPh)) includes concluding all financing requirements, site characterization and environmental impact assessment, in addition to the negotiations with ASE and the Strategic Partner, i.e, RAOS, on all Project related agreements. Phase II (Investment Phase) of the project is the implementation and construction phase leading to production operations and inevitably, decommissioning at the end of the plant’s lifetime.

Table 6. PLANNED NUCLEAR POWER PLANTS

The implementation of the Project is based on a Public Private Partnership (PPP) model. At the outset, the Jordanian side will own 50.1% and RAOS will own 49.9%. ASE is the EPC contractor for the Project, whereas an affiliate of ROSATOM will be the Russian Strategic Partner and Operator for the Power Plant. The Government has established in October 2015 the Jordan Nuclear Power Company (JNPC), to be responsible for negotiating all commercial contracts with the Russian parties and implementing the Project through securing Jordan’s debt and equity portion in the Project. After concluding all project agreements, the JNPC will sign a Shareholder's Agreement (SHA) and a Share Purchase Agreement (SPA) with the relevant Russian Party in order to introduce them as a partner in the JNPC thus forming the ‘Project Company’ that will be responsible for the construction, operation and decommissioning of the nuclear power plant.

JAEC’s role will continue setting the nuclear policy and strategy and manage future nuclear projects, act as the waste management organization, and in the future, it will provide Technical Support Organization (TSO) advice to both JNPC and the Regulator (EMRC) with the consideration to maintaining separation between the two groups providing the services.

JAEC has been exploring various options to fund and finance a Nuclear Power Plant (NPP). Currently, the government is funding all of the pre-construction activities for the project. The government is also expected to acquire shares of the equity of the NPP and to guarantee a long-term power purchase agreement (PPA).

Jordan is inclined to pursue a PPP but is also exploring other options, such as a “build-own-operate” or a “build-operate-transfer” plan.

Under either approach, Jordan will contract much of the short-term responsibility (5-10 years) for plant operation and maintenance to the international operator. But, in the long-term, Jordan will develop these capabilities locally.

The Government has selected ASE as a preferred EPC contractor and Rusatom as a strategic investor. The Russian side will provide 49.9% of the equity and the rest will be the responsibility of the Government of Jordan, which is currently working with regional and international investors to secure its equity share of 51.1%. On a parallel track, JAEC is currently in discussions with lenders to solicit and secure Debt Financing for the Project.

Jordan is planning to acquire a 700 to 1200 MWe reactor to be operational by 2024-2025. Jordan has started site characterization studies, securing funding, selecting a vendor and developing a workforce. Jordan’s electrical load of 3000 MWe which will reach 5000 MWe by 2020 (see Figure 2), is relatively small and may be able to support a 1000-1200 MWe reactor by taking the following measures:

1. Interconnecting with north Saudi Arabia

2. Upgrading the interconnection with Egypt and Syria

3. Upgrading the interconnection with the West Bank

4. Signing a long term electricity export agreement with neighboring countries

5. Using the nuclear reactor for dual use, including seawater desalination.

FIG 2. Jordan projected electrical load, 2007-2037

Jordan’s electricity grid is currently interconnected with Libya, Egypt, Lebanon, Palestine, Syria and Turkey, and may be connected to Iraq and Saudi Arabia in the future. With the exception of Saudi Arabia, these countries participate in grid sharing through a multi-party agreement. Jordan welcomes the idea to connect to the integrated grid of the Gulf Cooperation Council – Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and UAE – in the future. Jordan’s present electricity grid interconnection is shown in Figure 3.

FIG 3. Current Electric Grid and Interconnection

In 2009, JAEC launched environmental and feasibility studies for siting of Jordan’s first NPP. External international consultants were engaged to develop country wide survey study that explored potential sites in conformity with international safety standards.

A potential site considered for the location of the JNPP was close to Aqaba, in the south of Jordan. However, considering the high seismicity of the region and the additional engineering cost to erect an NPP on this site, investigation was shifted to a new site located north of Amman, which includes approximately 10 km of flat and undulating surface sufficient for the construction of the two nuclear The site was close to the main Assamra Wastewater Treatment Plant, and the quantity of treated wastewater is sufficient to meet the cooling water requirements for the NPP. However, after the Fukushima Daiichi Nuclear Power Station accident in 2011 and in response to public concerns to the proximity of the NPP to population centers, JAEC decided to move the exploration further away from population centers, 60 kilometers northeast of Amman on the edge of the northern desert near Qasr Amra area in the central part of Jordan (see Figure 4). In November 2014, JAEC has selected an international consultant to carry out detailed site characterization and Environmental Impact Assessment (EIA) study, which will take about 2-3 years to be finalized.

FIG 4. Selected Site-Site Area 1

Addressing public acceptance within the Jordanian society is currently pursued through launching a media campaign through radio, television and social media to disseminate sound and correct information and highlight the benefits Jordan will reap through implementing the nuclear program enabling the country to circumvent its energy challenge. JAEC recognizes the need to commission its own polls, currently JAEC is in the final stages of preparing the public opinion poll

Among the most prominent achievements of JAEC research and development are the Jordan Subcritical Assembly (JSA) and the Jordan Research and Training Reactor (JRTR).

Jordan Research and Training Reactor (JRTR) is being built on the campus of JUST by Korean Atomic Energy Research Institute and Daewoo Engineering & Construction (KDC) consortium. The JRTR is being built on the campus of JUST to be the corner stone for a center of excellence in nuclear science and technology in Jordan. JRTR is a multipurpose, 5 MWth upgradable to 10 MWth reactor.

The JRTR will provide a strong training and research platform for nuclear engineering students and other nuclear science experts. It will also be utilized for radioisotope production in support of regional medical, industrial and agricultural sectors. The JRTR is nearing completion and scheduled to undergo “Hot Commissioning” soon, and will be operational by the end of 2016.

Jordan Subcritical Assembly (JSA) is the first nuclear facility to be constructed in Jordan, at JUST campus, for the purposes of education, training and experimental research. JSA adopts the vertical platform structure with the core vessel placed on a supporting structure while an operating platform surrounding the vessel is used for fuel loading and other operation and maintenance activities. Following the commissioning of JSA in 2013, it is mainly being utilized for Nuclear Reactor Physics Laboratory training of nuclear engineering students at JUST. Experiments conducted using JSA include, but are not limited to, approach to criticality, flux mapping, reactivity determination using source jerk method, Rossi alpha method, Feynman alpha method, and a number of other experiments.

Not applicable.

Jordan is an active member in the International Framework for Nuclear Energy Cooperation (previously the Global Nuclear Energy Partnership or GNEP).

Jordan, represented by JAEC, has been negotiating Nuclear Cooperation Agreements (NCA) with several countries experienced in operating nuclear power plants. These negotiations led to the signature of NCAs with France, China, Republic of Korea, Canada, Spain, Argentina, Russian Federation, the United Kingdom, Japan, Romania, Italy, Turkey, Saudi Arabia and Armenia.

JNRC was established in 2007 as a successor to the former JNEC, established in 2001. JNRC is effectively an independent and adequately empowered regulatory body. It enjoys administrative and financial independence, shown Figure 6.

In 2014, JNRC merged with other regulatory bodies (namely the electricity production and mineral resources) under the EMRC, and the main goals of EMRC is to work, in coordination with relevant bodies, on achieving the following:

• Regulating and monitoring the use of nuclear energy and ionizing radiation.

• Protecting the environment and human health and property from the hazards of radiation and related pollution.

• Ensuring general radiation protection and nuclear safety and security.

• Application of the Safeguards and establishing the State System for Accounting and Control of Nuclear Material.

• Ensuring national and facility levels of Emergency Preparedness and Response.

• Coordination of national competent authorities for nuclear security and off-site emergency preparedness.

The EMRC has the duty of regulating nuclear materials and nuclear facilities and activities, to ensure the reliability and availability of the safety and security conditions and requirements for nuclear materials and nuclear installations and facilities, and the preparation of a system for inventory and accounting of nuclear materials in Jordan under the Safeguards Agreement applied by the IAEA.

For environment protection and EIA for Nuclear Facilities and Activities, both EMRC and Ministry of Environment has signed MoU to coordinate the EIA approval process under the both laws (43/2007) and the Environment Protection Law (52/2006), and to hire joint consultant for NPP EIA and capacity building.

In regards to the current law, EMRC has the duty of preparing the legislative framework of nuclear regulations, safety instructions and guides to control the peaceful use of nuclear energy in Jordan.

FIG 6. Nuclear Regulatory Structure in Jordan

The licensing processes of nuclear facilities and activities, reactor operators, management of spent fuel, and other related activities are under preparation by the regulatory body in Jordan, EMRC.