Jordan Proposes New Renewable Energy Rules

Jordan Proposes New Renewable Energy Rules
Jordan Proposes New Renewable Energy Rules
  • +
  • -
The Jordanian government has proposed amendments to regulations governing the connection of renewable energy facilities to the electricity grid, expanding access to several connection mechanisms and introducing broader provisions for electricity storage.اضافة اعلان

The draft also allows existing renewable energy systems that received approval before June 2024 to increase their generating capacity under specific conditions. The proposed changes are aimed at enabling citizens and economic sectors to make greater and more efficient use of renewable energy, while encouraging electricity storage and energy efficiency.

The Cabinet approved the explanatory memorandum for the draft amendments to the 2026 regulations governing the connection of renewable energy facilities to the electricity system and exemptions for renewable energy and energy-efficiency systems.

The government said the proposed regulations would provide greater flexibility for self-generation, encourage electricity storage and more efficient consumption, improve the viability of clean-energy investments, and increase the electricity system’s capacity to accommodate additional renewable energy while maintaining grid stability and reliability.

Storage Allows Higher Generating Capacity

One of the key proposed changes would allow renewable energy systems connected to electricity storage systems to increase their generating capacity by up to 100% of the consumer’s electricity consumption over the previous 12 billing periods, subject to the conditions governing each connection mechanism.

Under the off-site net-value mechanism, renewable energy systems connected to storage could increase their generating capacity by up to 100% of the combined consumption recorded on the consumer’s or consumers’ previous 12 bills, in addition to specified electricity losses. The increase would have to correspond to the capacity of the storage system and comply with guidelines approved by the Energy and Minerals Regulatory Commission.

Under the on-site net-value mechanism, the draft would similarly allow generating capacity to be increased by up to 100% of the consumer’s consumption over the previous 12 billing periods, provided the increase corresponds to the storage system’s capacity.

The 100% threshold does not automatically mean that an existing system can be doubled in size. Rather, it sets a ceiling for additional generating capacity based on consumption and subject to the regulations governing each mechanism.

Broader Access to Renewable Energy Mechanisms

The draft also seeks to remove several sector-specific restrictions under the existing regulations.

Under the off-site net-value mechanism, it would remove provisions limiting eligibility to medium and small industries, agriculture and hotels.

Under the on-site net-value mechanism, it would remove restrictions limiting eligibility to medium and small industries, agriculture, hotels and households.

The draft would also remove provisions excluding consumers under the regular tariff, extractive industries and banks from the zero-export mechanism.

The changes would expand the range of sectors eligible to use these mechanisms, while keeping each case subject to the technical and regulatory requirements set out in the regulations.

The draft would also allow users to choose one appropriate grid-connection mechanism from those specified in the regulations.

Renewable Energy and Storage Tariffs

The proposal replaces the existing tariff table for electricity generated by renewable energy systems, with different rates depending on the sector and whether a storage system is used.

For residential systems without storage, the proposed tariff is 50 fils per kilowatt-hour, rising to 70 fils per kilowatt-hour for systems connected to storage with a capacity equivalent to at least 50% of the electricity expected to be generated by the renewable energy system.

Where storage capacity is below 50%, the tariff would be calculated according to a formula linked to the storage capacity, starting from 50 fils per kilowatt-hour.

For other tariff categories, the proposed rate is 40 fils per kilowatt-hour for systems without storage and 50 fils per kilowatt-hour for systems with storage capacity equivalent to at least 50% of expected generation. A gradual formula would apply when storage capacity is below 50%.

These figures refer to the tariff for electricity generated by renewable energy systems covered by the table, not the electricity consumption tariff paid by subscribers.

Expansion of Systems Approved Before June 2024

The draft would create a pathway for renewable energy facilities and systems connected to the electricity grid and approved by the licensed electricity provider before June 1, 2024, allowing them to apply to increase their generating capacity by adding new capacity.

Electricity generated by the additional capacity would be subject to the “all export, all consumption” mechanism. The total amount of electricity expected to be generated annually by the existing system and the additional capacity could not exceed 100% of the consumer’s total consumption over the previous 12 electricity bills, in accordance with guidelines approved by the regulatory authority.

If these systems are connected to storage capable of storing the entire amount of electricity expected to be generated by the additional capacity, the draft provides for an electricity export tariff 50% higher than the tariff for electricity generated by renewable energy systems without storage.

Household Renewable Energy Systems

The draft would reorganize provisions governing the household sector through a separate article allowing residential users to establish and own renewable energy systems under the mechanisms permitted by the regulations.

The amount of electricity expected to be generated annually could not exceed 100% of total consumption, calculated according to guidelines approved by the regulatory authority.

The proposed rules would also limit residential renewable energy systems to 16 amps per phase.

The 100% threshold and 16-amp-per-phase limit do not constitute entirely new privileges for households, as the existing regulations already contain provisions governing residential systems under specific mechanisms. The draft would reorganize those provisions in a separate article.

Energy-Efficiency Certificate for Large Consumers

The draft introduces a requirement for high-consumption facilities. Renewable energy systems connected to the electricity grid could not be operated at facilities whose electricity consumption reached 500 megawatt-hours or more during the previous 12 months unless the facility first obtained an energy-efficiency certificate.

The certificate would be issued in accordance with instructions from the Ministry of Energy and Mineral Resources, adding an energy-efficiency requirement before renewable energy systems can be operated by this category of facilities.

New Method for Calculating Generating Capacity

The proposal would also change how the generating capacity of renewable energy systems is determined when a connection application is submitted.

Generating capacity would be determined using production factors for solar and wind energy adopted by the Energy and Minerals Regulatory Commission. For other renewable energy sources, the licensed electricity provider would supply consumers with estimates of expected energy production based on the technical specifications and guidelines approved by the commission.

The amendment would therefore transfer responsibility for determining the production factors used to calculate system size to the commission rather than retaining fixed values in the regulations.

Grid Service Charges

The draft also replaces the table governing grid service charges, setting different rates according to the consumer tariff category.

Under the proposed table, grid service charges would be:

JD 17.5 per kilowatt for banks.
JD 14 for extractive industries.
JD 10 for regular-tariff consumers and ports.
JD 9 for radio and television, the armed forces, and commercial users with systems exceeding 16 amps per phase.
JD 8.5 for telecommunications and private hospitals.
JD 5.5 for large industries, electric vehicle charging, and commercial users with systems below 16 amps per phase.
JD 5 for street lighting and mixed agricultural use.
JD 3.5 for water pumping.
JD 2 for hotels.
JD 1 for the household sector.

The proposed grid service charge would be zero for medium industries, small industries and agriculture.

The grid service charge is separate from the renewable energy generation tariff. Therefore, the figures in the proposed table do not represent changes to the electricity consumption tariffs applied to these sectors.

Review After Three Years

Overall, the draft seeks to reorganize several rules governing the connection of renewable energy systems to the electricity grid by expanding access to certain connection mechanisms, incorporating storage more extensively into capacity regulations, and allowing existing systems to be expanded under specific conditions.

At the same time, it introduces additional requirements for large electricity consumers.

The government said the draft was prepared following discussions with government and regulatory bodies, electricity companies, representatives of economic sectors, specialists and renewable energy investors. It was also based on a regulatory impact assessment.

The government said implementation of the amended regulations would be monitored and evaluated using indicators including the expansion of renewable energy projects, installed generating capacity, added storage capacity and their impact on the electricity system.

A comprehensive review would be conducted three years after the regulations enter into force to improve procedures, assess whether their objectives have been achieved, and evaluate their impact on electricity tariffs and the stability of the national electricity system.

The proposal comes as the government says renewable energy currently accounts for around 27% of Jordan’s electricity generation needs, while the Energy Sector Strategy for 2025–2035 aims to raise the share to 40% by 2035.

The proposal remains a draft regulation open for public consultation and is not yet in force. The amendments will not become binding until the required approval procedures are completed and the amended regulations are published in the Official Gazette.