Plan to raise "Mining" contribution to GDP to 1.7 billion JOD

Plan to raise "Mining" contribution to GDP to 1.7 billion JOD
Plan to raise "Mining" contribution to GDP to 1.7 billion JOD
AMMAN — Performance indicators in the institutional plan of the Ministry of Energy and Mineral Resources revealed the Ministry's intention to raise the energy sector's contribution to the Gross Domestic Product (GDP) to 0.52 billion JOD by 2027, compared to a targeted 0.5 billion JOD for the current year.اضافة اعلان

According to the plan, the Ministry also aims to increase the mining sector's contribution to 1.7 billion JOD in 2027, compared to 1.6 billion JOD in the current year and 1.5 billion JOD last year.

Indicators in the first edition of the Ministry's Strategic Plan for (2025–2027) show a target to maintain electricity sector loss reductions at 120 million JOD over the current and coming years, compared to 113 million JOD last year.

On the export front, the plan targets reaching 348.165 million JOD in energy sector exports next year, compared to 345.045 million JOD in the current year, whereas they reached 379.097 million JOD last year. For mining sector exports, the Ministry aims to raise them to 1.588 billion JOD next year, compared to 1.393 billion JOD in the current year and 1.222 billion JOD last year.

At the same time, the plan targets increasing investment in the energy sector to 1.140 billion JOD next year, compared to 0.648 billion JOD in the current year and 0.4047 billion JOD last year, nearly tripling the level achieved in the baseline year.

In the mining sector, targeted investments will rise to 2.2 billion JOD next year, compared to 1.3 billion JOD in the current year and 0.557 billion JOD last year, reflecting accelerated growth in sector investments.

Regarding infrastructure, the plan aims to increase power generation capacity to 7.3 GW next year, compared to 7.1 GW in the current year, while maintaining grid coverage at 100% across both years and increasing the share of local sources in electricity generation to 46.5% next year, compared to 43% in both the past and current years, while maintaining energy intensity at 147 kg oil equivalent per thousand dollars at constant prices.

Conversely, the Ministry targets reducing carbon dioxide emissions from the energy sector to 3.48% next year, compared to 3.5% in the current year.

At the sectoral performance level, the Ministry aims to maintain an energy mix diversity of five sources during the target period, while reducing the share of oil and its derivatives in the overall energy mix to 40% next year, compared to 42% in the current year and 41% last year.

In contrast, the share of natural gas in the energy mix will rise to 36% next year, compared to 33% in the current year and 34% last year, while the contribution of renewable energy to the energy mix will rise to 16% next year, compared to 16% in the current year and 15% last year.

Indicators show a target for natural gas contribution to power generation to reach 60% next year, compared to 59% in the current year and 56% last year, while maintaining four natural gas supply sources and sustaining an electricity supply security rate of 99%.

The Ministry also aims to raise domestic natural gas contribution to power generation to 5.4% next year, compared to 6% in the current year and 2% last year, alongside increasing renewable energy's share in electricity generation to 28% next year, compared to 28% in the current year and 26% last year.

The plan includes increasing the share of local sources in electricity generation to 45% next year, compared to 47% in the current year and 43% last year, and raising energy consumption intensity to 218 kg oil equivalent per thousand dollars next year, compared to 220 in the current year, following the adoption of a new base year (2023) by the Central Bank.

As part of developing the energy sector framework, the Ministry aims to raise the number of electrical interconnection projects to 6 next year, compared to 5 projects last year, while maintaining the mining sector's contribution to GDP at 3.3%, with continuous updates to targets for subsequent years.

The plan also aims to increase the number of signed memorandums of understanding for mineral exploitation to 9 next year, compared to 8 in the current year and 7 last year.