AMMAN — The
Ministry of Energy and Mineral Resources has initiated meetings with renewable energy producers in a bid to
renegotiate the green energy selling price to the National Electric Power
Company (NEPCO) and electricity distribution companies in hopes to arrive at
price reductions from previously signed power purchase agreements.
اضافة اعلان
A recent agreement between the government and
renewable energy power producers set the selling price at 17 fils per
kilowatt; however, the government had in past agreements with other companies
set the price range at 34-115 fils per kilowatt.
Official spokesman of the Ministry of Energy and
Mineral Resources Mashhoor Abu Eid told
Jordan News that the renegotiation
is a step that the ministry is currently working on to reduce the electricity
cost and ensure justice towards all the companies operating in this sector, on
one hand, and
NEPCO, on the other hand. Renegotiating the rates also aims to
achieve an attractive and stable investment environment based on equitable and
solid foundations, he said.
Abu Eid added that “the government began discussions
earlier this week and intends to hold periodic meetings with all companies.
However, the outcomes remain uncertain.” He added that the ministry will
announce the results as soon as they have been confirmed.
Renewable energy investor
Firas Balasmeh told
Jordan
News that the attempt to renegotiate is “ridiculous”, and that he believes
that the government has taken this step “to appease Jordanians and win the
backing of lawmakers.”
Balasmeh added that the existing contracts are
international contracts and that “any attempt to renegotiate them is an “absurd
idea”, shedding doubt on any potential that they may bring results.
“How can the government renegotiate contracts that
were signed and agreed two years ago?” he questioned.
Moreover, Balasmeh believes that the move would
discourage future investments in the renewable energy sector. “When you sign a
contract with a certain body you have to honor it, or you will lose trust.”
MP Ali Al-Khalayleh told
Jordan News that the energy
file in Jordan “remains distorted”, and that there must be an intent towards
restructuring renewable energy agreements.
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