Edama Calls for Incentives to Expand Battery Storage

Edama Calls for Incentives to Expand Battery Storage
Edama Calls for Incentives to Expand Battery Storage
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Amman – The Edama Association for Energy, Water and Environment has recommended developing an independent and comprehensive legislative and regulatory framework for electricity storage systems using batteries, which are expected to be deployed in Jordan soon. It also called for upgrading the electricity grid infrastructure and reconsidering restrictions on the capacity of energy storage systems.اضافة اعلان

The association also recommended introducing targeted financial incentives to encourage investment in the sector, strengthen energy supply security and increase the power system’s ability to accommodate renewable energy sources.

In a recently issued research paper titled “Enhancing Jordan’s Energy Security Through the Deployment of Battery Energy Storage Systems,” the association said energy storage systems represent one of the key solutions for improving grid resilience, maximizing the use of renewable energy generation and mitigating the impact of fuel supply disruptions, as Jordan continues to rely on imported energy sources.

The Edama Association for Energy is a Jordanian nonprofit, nongovernmental business association established in 2009. It aims to support Jordan’s transition toward a green economy, achieve greater energy and water independence, and protect the environment.

The paper called for establishing a regulatory framework defining technical standards for batteries and requirements for their installation and operation, as well as licensing and ownership rules, tariffs, fees and exemptions. It also called for regulating the import and export of batteries.

It further recommended establishing a dedicated tariff system for hybrid systems combining renewable energy and storage, setting out mechanisms for calculating, valuing and compensating for stored electricity when it is fed into the grid or used to cover consumption.

The paper stressed the importance of setting specific tariffs for battery charging and discharging during peak, partial-peak and off-peak periods, as well as establishing financial compensation for ancillary services that storage systems can provide to the grid, such as frequency regulation and voltage support.

Regarding infrastructure, the association recommended upgrading the electricity grid to accommodate two-way energy flows and strengthening advanced monitoring and smart distribution systems. This would help maintain grid stability and enable it to absorb the expansion of energy storage systems alongside the growing contribution of renewable energy sources.

It also called for a more flexible regulatory approach to determining battery capacities by separating storage capacity from the limits imposed on solar energy systems. Battery size should instead be determined based on actual consumption patterns, peak-load requirements and self-consumption levels, rather than being directly tied to the capacity of the installed solar system.

The association said this approach would enable households and commercial facilities to make better use of solar systems combined with storage, manage peak loads more effectively and ensure the continued operation of critical loads during grid disruptions or power outages.

On financing, the paper recommended launching dedicated financial support programs for battery energy storage systems, including direct capital subsidies, tax incentives for investment, low-interest green financing and performance-based payments for services provided by storage systems to the grid.

It also called for establishing national funds dedicated to climate action and the energy transition, supported by international partners and multilateral development banks, with the aim of reducing investment risks and directing concessional financing toward priority storage projects.

The paper cited Australia’s “Cheaper Home Batteries” program, which helped install battery systems in more than 490,000 homes and added more than 13 gigawatt-hours of behind-the-meter storage capacity within about a year of its launch.

It said Jordan could benefit from a similar model by providing direct capital support to make residential batteries more competitive and encourage their wider adoption.

Source: Al-Ghad