Energy Sector PROJECT PROFILE October 2014 Energy Sector Capacity Building Activity BACKGROUND Jordan’s energy security is precariously at risk. Energy takes up to 24% of Jordan’s gross domestic product. The sector faces high global oil and gas prices, near-total reliance on energy imports, increased domestic demand, and high, unsustainable subsidies. Longer-term initiatives, such as increased use of renewable energy and the development of alternative energy supplies, will eventually help address the supply side of Jordan’s energy equation. However, in the near-term Jordanian energy sector actors must also address the demand side through improved energy efficiency. To achieve this goal, they must overcome various challenges, including distorted tariffs, a lack of capacity, and a lack of reliable data to support effective decision-making. USAID supports Jordanian energy sector partners in creating a viable enabling environment for energy efficiency, strengthening management of energy sector institutions, and expanding the local market for energy service providers. U.S. Agency for International Development jordan.usaid.gov The USAID Energy Sector Capacity Building (ESCB) Project works with Jordanian energy sector partners to cultivate effective policies and decisionmaking in the energy sector; and to build sustainable institutional and organizational capacity to increase the adoption of energy efficiency technologies and practices. ESCB places a high priority on addressing gender issues in the energy sector, including promotion of women in energyrelated careers. GOALS  Successful development and adoption of a utilities incentive mechanism to promote energy efficiency, including a robust monitoring, evaluation, and validation system;  Increase institutional capacity of the Jordanian energy sector partners including the Ministry of Energy and Mineral Resources, Energy and Mineral Resources Commission, and electricity production, distribution, and transmission companies;  Strengthen market presence, capacity and regulation of energy services providers through market research, business development services, accreditation of energy service providers, and the creation of an energy services association; and  Provide a flexible response mechanism for emergent energy sector needs and opportunities on a demand-driven basis. CONTINUES > PROGRESS & ACHIEVEMENTS Utilities Incentive Mechanism      JEPCO engineers developing their DSM ideas using a financial analysis model provided by ESCB Obtained formal government endorsement of “Demand Side Mechanism” (DSM) for establishing programs with energy utilities to support consumer adoption of energy efficiency Conducted consultations with commercial and industrial sector on energy efficiency and trust in energy utilities Completed, with utility partners, first detailed energy use survey on over 2500 Jordanian households Developed a financial model for utilities to conduct costbenefit analysis for energy conservation programs Conducted analysis of policy gaps in existing legislation and regulations on renewable energy and energy efficiency Capacity Building     Developed capacity building action plans for 6 government agencies and energy utilities Provided technical support and training to 48 sector public and private sector institutions, for a total 1200 person hours of training Prepared sections on renewable power for the government codes on transmission grid and distribution Supporting Energy Saving Action Planning Process and Greater Amman Municipality Waste-to-Energy facility Developing Energy Service Company Associations   CONTACT: Mary Worzala Chief of Party USAID Jordan Energy Sector Capacity Building Activity Tel: +962 6 5622853 Fax: + 962 6 5606584 [email protected] Supported establishment of an informal coalition of Energy Service Providers and conducted market survey Surveyed financial institutions providing green credit Responding to Energy Sector Opportunities   Contracted two Jordanian companies for solar power installation at Ministry of Planning and International Cooperation and Jordan Customs Department Conducted study with Mercy Corps on technical impact of solar power initiative for 75 rural households Gender Equality    Developed project inclusion plan to promote roles of women and youth in energy sector Hosted networking events for women in the energy sector Sponsored meetings of the Council on Women in Energy Environmental Leadership, Association of Energy Engineers, under the Jordan Energy Chapter of EDAMA