Energy Sector - NuMOV

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Energy Sector - NuMOV

Energy gy Efficiency y Export p Initiative

April 18 th ‐22 nd 2010 to Hanover –Germany

Eng. Khaldoun Zeinati

Jordan d Saraya For IIndustry d

and Invention


Minister of Energy and Mineral Resources

Jordan Investment Board


Jordan – Germany


Jordan Investment Board

One stop shop for setting up your business ten

department in one place.

Tax and Custom Duties Incentives:

Imported fixed assets are exempted from

customs duties/taxes

Additional dd t o a ee exemption ptofrom o custo customs s dut duties es

and income tax is granted for the

expansion, modernization, or development of

existing projects

Ease of licensing and registration procedures

Free repatriation of capital, profits and salaries


Presentation Agenda

Jordan Saraya for Industry and Invention Co. LTD

Investment Climate in Jordan

Sources of Jordan’s Competitive Advantages

Jordan’s Enabling Platforms

Energy Sector in Jordan and Energy Efficiency

Jordan Renewable Energy Program Projects & investment

Opportunities


JSII personal has a wide Experience in

design, manufacture & Built Electrical

andd ttechnological h l i l plants l t ffor th the

industrial, Civil, private and public

sectors


ﺲﻴﺳﺄﺘﻟا ﺲﻴ ﺖﺤﺗ

جﺎﻌﻟا ﻞﺣﺎﺳ ﻲﻓ ﻚﻨﺒﻟا ﺲﻴﺳﺄﺗ ﻰﻠﻋ ﻪﻴﻟﺎﻤﻟاو دﺎﺼﺘﻗﻻا ﺮﻳزو ﻲﻟﺎﻌﻣ ﺔﻘﻓاﻮﻣ

19/10/2009 ﺦﻳرﺎﺗ 5641/MEF/CAB‐01/kef ﻢﻗر ﻪﺑﺎﺘآ ﺐﺟﻮﻤﺑ

Financial Markets Bank certifies That Eng. Khaldoun Zeinati is a main

share holder in this bank and the General Manager of Jordan Saraya for

Industry and Invention Co. Ltd.

The above mentioned Co. is the investment arm of the bank in all fields of all

types of energy. energy

This company is totally supported by the bank for all its projects including:

* Prepare all visibility studies to all energy projects.

* Recommend such projects to the bank for financing financing.

* Establishing projects as a joint venture.

Eng. Zeinati accordingly is a member of the banks committees and the

head of energy committee. committee He is fully authorized to discuss all projects locally

and internationally and submit his study to the bank for interested projects.

www.bankfm.net


Field of Activities

Turnkey projects for street lighting

Stadiums, airports.

Solutions at traffic and road safety.

Design, supply & installation of industrial

plants.

Integrated solutions for renewable energy to

all industrial, agricultural and domestic …..

(Solar and Wind Power).

Electromechanical supplies.

LED Light Solutions


List of Materials

1. Poles, High Mast, Telecom towers, Transmission Line.

2. Street lighting fixtures Mercury, Sodium, MH and LED.

33. IIndoor d li lighting h i fixtures fi Fluorescent Fl and d LED LED.

4. Solar Panels and Wind Turbine.

55. HVAC Equipments Equipments.

6. Power and Distribution Transformers.

7. Busbar Duct.

8. MV Distribution Switchgear up to 36 KV.

9. Vacuum Circuit Breakers.

10 10. 11 KV & 22 KV SF6 Ri Ring Mi Main UUnits. it

11. Traffic and Road Safety Products.


Investment Investment Climate Climate in in Jordan

Jordan


Millionns

(USD)

Foreign Direct Investment Inflow

$3,500

$3,000

$2,500

$2,000

$1,500

$1,000

$500

$0

$816

Source: International Monetary Fund

$1,774

$3,268

$1,950 $1,954 $1,833

2004 2005 2006 2007 2008 2009


IInvestments t t BBenefiting fiti ffrom th the IInvestment t tPPromotion ti llaw

Millions (USD) (

$3,500

$3,000

$2 $2,500 500

$2,000

$1,500

$1,000

$500

$0

$589

Source: Jordan Investment Board

$1 $1,056 056

$2,584

$3 $3,130 130

$3,188

$2,620

2004 2005 2006 2007 2008 2009


BBreakdown kd of f IInvestments t t BBenefiting fiti ffrom th the IInvestment t tPPromotion ti llaw

Millioons

(USD)

$2,500

$2,000

$1,500

$1,000

$500

$0

$327

$134

Source: Jordan Investment Board

$668

$389

$1,393

$1,191

$1 $1,650 650

$1,480

$2,086

$1,111

$1,597 $ ,

2004 2005 2006 2007 2008 2009

$1 $1,023 023

Domestic

Investment

Foreign

Investment


Investment Projects bby

Sector

Training; 3

Electricity; 10

Business

Centers; 7

Convention Exploration; 2

Centers; 2 Maintenance; 1

Construction; Construction; 17 17

Manufacturing; 20

Sales & Marketing; g

25

Logistics; 6

Retail; 10

Call Centers; 2


Sources Sources of Competitive Advantage


Why Invest In Jordan?

Advantages g Description

Political Stability, Security & Vision

Strategic Location and Central

Market Access to One Billion

Consumers

Growing and Robust Economy

Skilled and Talented Human Capital

Modern and Well Connected

Infrastructure

FFavorable bl Business B i Environment

E i t

Enabling Platforms

Investors’ confidence in the Kingdom's economy, political stability, good international relations and cost‐competitiveness has

produced a groundswell of investment from around the world. All efforts contribute to maintaining a momentum of growth and

development.

Jordan enjoys distinguished foreign trade policies built on the norms of openness and integration. Agreements include GAFTA

with 17 Arab countries, US Free Trade Agreement, association agreement with the European Union, European Free Trade

Association Agreement, and more recently a free trade agreement with Canada. Similar deals are currently being negotiated with

Canada, Turkey, and extending to Latin America.

Jordan’s macro‐economic fundamentals are sound and contributing to the country’s continued growth in 2010.

Liberalization, careful planning, policy reforms, a strong economy, and the creation of ideal conditions for businesses led to a

surge in foreign investment to Jordan Jordan.

A population of 5.9 million out of which 70% is under the age of 30 and enjoys a 2.3% annual growth rate. Literacy rates in the

Kingdom are among the highest in the Middle East obtaining 91.1% in 2007 compared to 89.9% in 2004.

Our infrastructure is set up to serve people, investment, trade and ideas. On one hand, Jordan’s modern transportation

infrastructure helps businesses navigate the world more quickly and comfortably. On the other hand, Jordan has one of the most

liberalized and competitive telecommunication markets in the Middle East and an independent regulator.

Strong Banking System, Competitive costs of Doing Business , Attractive tax incentives and custom duty exemptions, Reformed

and a dliberal be a legislation, eg s at o , Streamlined St ea ed procedures, pocedues, Profound oouda and dinternational te at o a investor esto protection potectomeasures. easu es

Development Areas (King Hussein Business Park, King Hussein Bin Talal Development Area, Irbid Development Area, Ma’an

Development Area), Aqaba Special Economic Development Zone (ASEZA), Industrial Estates, Free Zones.


SStrategic i Location L i

Strategically situated on land bridge between Europe, Africa and Asia

Jordan serves as a focal point p for trade and investment within MENA

The MENA market is comprised of 325 million consumers, 6% of world population.

Growth rate: 3% (vs. 0.8% in EU)

Consumer market is projected to double in size in approximately 18 years

Jordan


International i lGGateway

Member of WTO.

Jordan‐US Free Trade Agreement (FTA).

Qualifying Industrial Zone (QIZ) Agreement.

Greater Arab Free Trade Agreement

Euro‐Jordanian Association Agreement.

Aghadir Agreement.

Jordan‐EFTA Jordan FTA FTA.

Jordan‐Singapore FTA.

Jordan‐Canada FTA.

Jordan Turkey FTA (signed 2009)

Access To One Billion Consumers…

Customs Free and Quota Free


Skilled kill d and d Talented l dHuman Capital i l

People are our greatest asset

Well educated population.

20% of population have a degree or third‐level qualification

Over 92% literacy rate

Ranked 39th out of (134) countries for the number of scientists and engineers.

192,000 students currently enrolled in universities.

26 universities (15 private, 11 public).

60 community i colleges. ll

35 vocational training centers training over 10,000 people each year.

Competitive wage structure.

Jordan provides the Middle East with its most highly skilled workers, particularly

in the professional and services sectors…


Modern d and d Well ll CConnected dInfrastructure f

Jordan boasts high quality infrastructure

surpassing many regional and emerging

economies.

3 airports and 1 port (Aqaba)

55 directly served destinations and 700 served by

alliance airlines.

Expanding airport to serve 9 millions passengers

annually

Road network: 8,000 km of modern highway

system. t

Railway master plan to develop an extensive rail

network.

Deregulated telecommunication market since

2005


Jordan’s Jordan’s Enabling Platforms


Jordan’s Enabling Platforms

Development Areas and Zones

Ki King Hussein H i Business B i Park P k(KHBP) (KHBP)

King Hussein Bin Talal Development Area KHBTDA (Mafraq)

Irbid bid Development l Area

Ma’an Development Area (MDA)

Dead Sea Development Zone

Ajloun development Area

Aqaba Special Economic Zone

Industrial Estates

Free Zones


Energy Sector in Jordan and Energy Efficiency

Projects & investment Opportunities


Energy Sector

Jordan’s currently has no indigenous sources of energy, in order to achieve security

of supply the government developed the Energy Master Plan Plan.

Natural

GGas; 36%

Renewable

Energy; 2%

2008

Imported

Electricity;

2%

Oil; 60%

Natural Gas;

29%

Renewable

Energy; 10%

Imported

Electricity;

1%

The dependency on imported oil will be reduced by:

Enhancing renewable energy projects.

IImplementing l i iintensive i energy efficiency ffi i programs.

Utilizing oil shale to generate electricity and produce oil.

Generating electricity from nuclear energy.

Developing local sources of Natural Gas

2020

Oil Shale;

14%

Nuclear l

Power; 6%

Oil; 40%


Features

JJordan d iis considered id d as a hhubb andd ttransit it country t andd

can play a major role linking oil, gas and electricity

network among the region region.

The country has a huge potential of :

energy resources (oil shale, uranium).

renewable energy utilization (wind, solar).

In regard of oil and gas , Jordan has not been explored

yet.


• Jordan is a transit country for Egyptian Ngas N.gas.

•Jordan was a transit country for Saudi and Iraqi Crude Oil.


• Jordan is a hub for the existing electricity network in the region.

TTurkey k

300 MW 400 MW

Lebanon Syria y

Iraqq

Lib Libya

175 MW

300 MW

300 MW

Palestine Palestine Jordan Jordan

EEgyptt 450 MW

Eight Eight Countries Countries Interconnection Interconnection Project Project


New Electricity Generation Plants

Estimated Cost: $4 $4.3 3 – 55.3 3 billion billion.

Objective:

to generate 3740MW to meet the growing local

and regional demand (average annual local

demand growth on electricity is 4.6% annually).

Description:

will be built as an IPP (an ( electricity y production p

company independent of public sector control).

the project will be awarded as BOO

(Build, Operate, Own)

Timeframe: 2008 – 2020


Energy Demand

Jordan witnesses high growth of energy demand.

1000 1 TOE

16000

15000

14000

13000

12000

11000

10000

9000

8000

7000

6000

Growth of Primary Energy Demand

Med. Demand

5.5 %

2007 2009 2011 2013 2015 2017 2019

The expected demand for primary energy amounts is 15 million tons of oil equivalent in 2020 compared

to 7.5 million tons of oil equivalent in 2008.

Year


Capacity (MMW)

El Electricity t i it GGenerated t dCCapacity it tto MMeet tFFuture t DDemand. d

7000

6000

5000

4000

3000

2000

1000

0

7.4

%

2007 2009 2011 2013 2015 2017 2019

Year

Additional units+ Current units+ Interconnection

Current Units

Max. Peak ( Med. Sen.)

Max. Peak ( Med. Sen.)+10%

Th dditi l td it dd t 2020 i

The additional generated capacity needed up to 2020 is

4000 MW, an average of 300 MW per year.


Energy Sector – Master Plan Map

According to the Master Plan the required investment in the energy sector is around

According to the Master Plan the required investment in the energy sector is around

$14‐18 billion over the period (2007‐2020)


Energy Sector –Renewable Energy

Promoting Renewable Energy to share 7% in the primary

energy mix in 2015 , and 10% in 2020

600 ‐ 1000 MW Wind Energy

300 ‐ 600 MW Solar Energy

30 – 50 MW Waste to Energy


Wind Energy

Jordan retains a high potential of wind

energy generation with ideal locations

possessing wind speed of more than 7

mps, compared to the 4.5 mps for

effective wind power generation.

Resources are available and attractive

wind sites have been identified.

More sites (about 15) still under

further measurements and

investigation.

Two commercial wind projects

currently in the pipeline and future

projects are are under consideration

Open p Plain Hills

depending on the results of the

measurement campaign.

>7.5 m/s >11.5 m/s

6.5-7.5m/s 10-11.5m/s

5.5-6.5m/s 8.6-10m/s

4.6-5.5m/s 7-8.6 m/s

< 4.5 m/s < 7.0 m/s


SSolar l EEnergy

Abundance of sunshine of 300 days a

year.

Horizontal surfaces ranging from 5‐7 5 7

Kwh/m sq.

Desert terrain famous for sandstorms

and strong solar energy radiation

levels levels.

Cost competitive research and

environmental development

opportunity and land values.

Solar Water Heaters: Financing

scheme program currently developed

to increase the share of households

equipped with SWH from 14% today

to 25% by 2015 and 30% by 2020.

PV: good utilization and experience of

PV in rural areas for electricity

generation ti andd water t pumping i

(about 1000kW of PV systems). new

projects planned with international

support and through private

iinvestors. t


Solar Power/Cont’d..

First Concentrated Solar Power project: Recently launched in

cooperation with EU: With expected 10 million Euro grant, 5 MW

CSP plant will be built in the South of Jordan and used as a training

center for NERC and local workforce.

100 MW CSP Power Station in Jordan: To construct a 100MW

Concentrating Solar Power (CSP) plant in the south‐eastern part of

JJordan d (M (Ma’an ’ GGovernorate). t ) Th The applicable li bl ttechnology h l iis openatt

this point of time, and it is expected to be determined by the

competitive tendering process on BOO basis. Soft financing is

expected expected through the so‐called so called Clean Clean Technology Technology Fund (CTF).

Two large private CSP & PV projects 100 MW each (investors and

technology providers) were announced within

Development Zone with feasibility studies underway

the Ma’an Ma an


Energy Sector ‐ Oil Shale

The 3rd Largest Deposit in the World…

Oil Shale reserves in Jordan (deep and shallow) are estimated at more than 40

billion metric tons.

The Government of Jordan and Shell Company signed a Concession Agreement

to explore and produce deep oil shale over the next 12‐18 years.

Brazilian Petrobras and the Jordanian partner Kawar Group signed an MOU with

the government of Jordan to explore explore, appraise and exploit Oil Shale in Jordan Jordan.

The project is estimated at a value of USD 3.5 Billion and is expected to produce

up to a 100,000 barrels per day.


Energy Sector – Nuclear Power

Areas of Uranium Deposits

Source: Jordan Atomic Energy Commission

Central

Jordan

5% of the World’s Total Estimated

Reserves of Uranium

Jordan possesses an estimate of

140,000 tons of uranium.

There are numerous indicators

for deposits but much is still

unexplored.

Only Central Jordan has been

somewhat explored with

estimates of nearly 70,000

metric tons.

Jordan is currently working

forward to build its first nuclear

plant by 2015.


Energy Sector – Nuclear Cooperation

Engaged the following countries and explored with them

opportunities ii off nuclear l cooperation i ffor peaceful f lpurposes:

USA

Canada

Fran France e

Russia

China

UK

South Korea

Romania

Spain

Argentina

Japan

Signed NCA with France, China, South Korea , Russia, UK and

Canada

Ongoing g g negotiations g with USA , Japan, p , Argentina g and

Romania


Biomass/Biogas/Biofuels

Resources:

Most viable resource for biogas in Jordan is municipal

solid waste.

The amount of municipal solid waste is fast growing.

Resources are available.

Past & on‐going activities:

A pilot plant using municipal solid waste of 3.5 MW in

operation since 2000.

Pilot projects for the cultivation of Jatropha curcas

underway throughout the Kingdom to help identify the

most suitable areas and the feasibility of large scale

cultivation (Biofuels production).


Geothermal

Hot and geothermal springs do exist, found to have low

enthalpy py and could not support pp commercial power p

development. Deep drilling is required for further

investigations and feasibility of commercial projects.

Hydropower

Around 10 MW installed power.

Red ‐ Dead Seas Project (400‐800 MW)

Resources are very li limited.

i d


Renewable Energy and Energy Energy Efficiency Law

Main Goals

• Provide a legal mandate for the government and a

regulatory lt fframework kffor RE andd EE ddevelopment. l t

• Encourage private‐sector investment in RE.

• Diversify energy sources in Jordan.

• Reduce greenhouse gases.

• Develop in‐country expertise related to RE and EE


Main Articles

• Creates a registry of renewable energy sites sites.

(Develop a Land Use List for RE projects based on

resource maps p and measurements) )

• Tendering of RE Projects:

• Authorizes MEMR to issue public tenders on competitive

basis for development RE projects at specific sites in

accordance with MEMR’s development p plan p .

• Permits direct proposals complying with certain

conditions.


• Obligation to purchase renewable energy:

(All ( Energy gy Output p from RE projects p j must be purchased p

pursuant to Power Purchase Agreements (PPA).

• IInterconnection t ti andd Li Licensing i IIncentives: ti

(NEPCO to interconnect and assume the costs of

iinterconnection t ti li line bbetween t th the project j t andd th the nearestt

substation).

• Allow for the so‐called “Net Metering”:

(small RE projects and residences having RE systems to sell

(small RE projects and residences having RE systems to sell

power to the Grid at the same purchase price pursuant to

instructions to be issued by ERC).


• Establishing a Renewable Energy & Energy

Efficiency Fund:

• provide good financial framework to support energy

efficiency programs and renewable energy projects, to

help achieve the targets set in the Energy Strategy; 10%

renewable and 20% energy savings by 2020 .

• Funding resources are annual Budget allocations and

Foreign donation.

• Allows for Bylaws to be issued for EE measures in

different sectors.


Energy Sector ‐ Opportunities

Oil: JIB Investment Map Pre‐ feasibility studies

Oil Exploration.

Crude Oil Transportation

Infrastructure.

Oil Rfii Refining.

Distribution of Refined

Products.

Gas:

Gas Exploration.

Development evelopment of Risha Gas Field

and infrastructure.

Development of Gas

Distribution Networks.

Electricity:

Electricity Generation Plants.

Electricity Distribution Distribution.

available:

Concentrated Solar Power Generation

Project

Di District i EEnergy Company C

Turnkey Solar Equipment Packager

Quality Solar Water Heating Systems

Th Thermochemical h i l EEnergy St Storage

Wind Powered Electricity Facility Wadi

Araba


Infrastructure Projects

Jordan’s expected p overall infrastructure spending p gaverages g around $ $750 million

to $1.1 billion a year through 2015.

At least $100‐200 million is forecasted to come from private investors.

Infrastructure Projects in:

Waste Water and Sanitation

Energy

Transport

Municipal Services

Education and Health

Tourism

Water Recycling and

management


Thank you for taking the time to view the presentation.

Please do not hesitate to contact us for any further information or any clarification.

clarification

Contacts:

Eng. KHAIREDDIN SABER / Managing Director

EEng. KHALDOUN ZEINATI / / General G lMManager

Jordan Saraya For Industry and Invention

Tel: 00962 6 5162539

Fax: 00962 6 5162538

E‐mail: jsii@orange.jo

E‐mail: khzeinati@yahoo.com

PO P.O. Box: B 961632 AAmman 11196 JJordan d

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