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Renewable Energy Integration in Jordan's Grid


 
 

Introduction

Jordan faces formidable challenges in integrating renewable energy into its national power grid, primarily due to inadequate grid capacity and reliability. This situation is made more difficult by the country's substantial dependence on imported energy, which in 2021 made up 84% of its total energy consumption and cost approximately 1,858 million Jordanian Dinars. The energy sector also emits 76% of Jordan’s greenhouse gases, underscoring the critical need for a shift towards sustainable energy. Despite the aims of the National Energy Strategy for 2020-2030 to elevate the share of renewables in the energy mix from 13% in 2019 to 31% by 2030, the actual implementation faces hurdles. In 2020, renewable energy sources like solar and wind contributed about 1425 MW, merely 16% of the total electricity generation.

 
 

Challenges

The integration of renewable energy is further complicated by recent economic downturns and spikes in fuel costs, which have decreased electricity demand and led to significant consumers disconnecting from the grid, sharply reducing electricity tariff revenues. These dynamics add layers of complexity to managing a grid increasingly dependent on intermittent renewable sources, presenting technical and financial challenges. Moreover, the infrastructure needed to support renewable energy integration is lacking. Issues such as the absence of energy storage regulations and grid code requirements exacerbate these problems. High costs and technical challenges with battery and pumped hydro storage also add to the difficulties. Furthermore, Jordan's urban architecture presents logistical challenges. The prevalence of multi-story buildings limits the installation of solar panels, compounding integration issues.

The reliance on a singular type of renewable technology further amplifies the mismatch between generation and demand, necessitating enhanced storage solutions to stabilize the grid effectively. These impediments underscore the urgent need for infrastructural upgrades and innovative policies to streamline integration processes, optimize grid operations, and achieve Jordan's renewable energy objectives. As a consequence, the challenges in integrating renewable energy sources into Jordan's power grid and ensuring grid stability primarily affect the energy sector and its stakeholders. This includes government entities responsible for energy policy and regulation, utility companies tasked with managing the grid, renewable energy developers, and consumers reliant on the electricity supply. Furthermore, the problem extends to various industries, businesses, and residential areas across Jordan, particularly those located in urban centers where electricity demand is high and space for renewable energy infrastructure may be limited. Residential consumers experience fluctuations in electricity tariffs due to the grid's struggle to manage renewable energy contributions efficiently. Industrial facilities grapple with reliability issues stemming from grid instability, affecting manufacturing operations and productivity. Commercial establishments face uncertainties in electricity supply, impacting service delivery and business continuity. Large consumers are also prompted to exit the grid due to high electricity tariffs, exacerbating the decline in electricity tariff revenues.

 
 
 
 

Suggested Approaches

To effectively tackle the integration challenges of renewable energy into Jordan's power grids, the country needs to develop innovative solutions tailored to its unique landscape, such as advanced energy storage systems, grid management softwares, and the integration of distributed energy resources to accommodate variable renewable outputs. Upgrading the grid infrastructure and establishing microgrid solutions are crucial for enhancing power system stability and reliability. Entrepreneurs and energy sector stakeholders must take the lead by focusing on solutions that address the recent drop in electricity demand and the rise in electricity tariffs, particularly in productive sectors.

Overcoming technical and financial challenges, including optimizing the power system's operation and addressing capacity limitations in transmission and distribution networks, is critical. Innovators must be encouraged to leverage digital tools, data analytics, and IoT technologies to develop and implement solutions that will increase renewable energy penetration, reduce reliance on imported fuels, and promote sustainable economic growth. Establishing supportive financial and policy frameworks is essential to ensure the long-term sustainability of Jordan’s energy sector. Such comprehensive measures will not only address immediate integration issues but also set a foundation for a resilient and efficient energy future.

 
 

Ideation Hub

We have offered viable solution approaches for each of the four sectors to spark your creativity, but we highly encourage you to bring your originality and unique perspectives to the table.

You can use these ideas as a starting point, but we urge you to think outside the box. Let’s come up with pioneering ideas to transform Jordanian industry.
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