Agreements for generating electricity need to be reviewed —experts

shams maan
A general view of the Shams Maan solar power plant in southern Jordan. (Photo: Kawar Energy)
AMMAN— Economist and energy specialist Amer Showbaki said that the price of producing renewable energy decreased globally, with the lowest price reaching $0.01 per kilowatt of electricity generated from solar energy in the US, and that is much less than the cost announced by the lower House Energy and Minerals Committee. اضافة اعلان

“The current global price for generating 1 kilowatt of electricity from renewable sources of energy is lower than that of any other source on earth,” Showbaki told Jordan News, stressing that the south of Jordan is the perfect spot for producing electricity from renewable sources, given the number of sunshine days throughout the year and the moderate weather, which is vital to an efficient generation of renewable energy.

Showbaki also pointed out that Jordan signed long-term contacts, some of which more than 20 to 25 years old, to produce renewable (solar) energy, adding that “these contracts increased the cost of producing 1 kilowatt of electricity, which might range from JD0.12 to JD0.14”.

The last offer to the government for producing renewable energy was in 2019; it came to JD0.17 per one kilowatt of electricity sold, yet the government refused it since it had a surplus of electricity capacity back then, Showbaki said.

Rejecting the 2019 offer had negative consequences, including losing the opportunity of having cost-lowering projects for generating electricity from renewable sources, said Showbaki, adding that many factories and economic establishments were in need of private solar energy projects but the government did not approve them.

Instead of addressing an issue by committing a mistake, Showbaki said, “the government should have reviewed the long-term contracts which come with high production costs per kilowatt, and use as little fossil fuel as possible, which would have been better solutions than rejecting low-priced renewable energy projects”.

Energy expert Hashem Aqel told Jordan News that the launch of any technology implies a high investment cost. When talk about renewable energy started in Jordan, in 2010–2011, the investment cost was estimated at $1 million, but today it does not exceed $200,000.

Aqel stressed that the real problem lies in the government’s signing of long-term agreements without requesting periodical review, while the terms of these agreements should be modified as per the new prices. Due to the limitations imposed by the long-term agreements, the government is bound to pay the old agreed-upon price, he said.

The “legal weakness” of those contracts is the main reason for the rise in electricity bills produced by both conventional and alternative ways, he said, adding that the only solution to this issue is to review the agreements for generating electricity and noting that a kilowatt costs the government around JD0.10.


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