Jordan is one of the leading countries in the MENA region with regards to investments in renewable energy. Jordan’s permanent representative of the International Renewable Energy Agency (IRENA) announced in January 2020 at the World Future Energy Summit that the Kingdom has invested more than $5 billion in renewable energy. This is substantial considering Jordan is a small developing country with few natural resources, a high debt to GDP ratio, and vulnerable to climate change impacts.

According to the ministry of energy and mineral resources in a 2018 report, based on the electricity generations, solar energy contributes 4.5% out of the total electricity generated mix as of 2017. Diversifying the energy mix and investing in renewable energy projects is essential to reduce Jordan’s dependence on foreign oil and natural gas. The country has one of the highest irradiance levels in the region, which means higher outputs for solar PV technology and energy production.

Renewable energy can have political, social, and economic benefits that can easily be realized in a relatively short time-span. The Kingdom has more than 600 companies working in its renewable energy sector, and thus is a key driver to reducing the high unemployment rate in Jordan and simultaneously building technical skills especially for youth.

One project that has shown great hope is the world’s first refugee camp powered by solar PV technology located in Azraq, with a capacity of almost 2 MW, allowing affordable and accessible electricity to be delivered to nearly 20,000 Syrian refugees. According to a report by UNHCR, the solar farm will result in cost savings of $1.5 million per year and will reduce CO2 emissions by approximately 2,370 tons per year. The social benefits associated with the project have also been significant, with 50 refugees having been trained and employed to support the construction of the system.  This led to job opportunities in the operation and maintenance of the plant.

The Government of Jordan has also shown interest in smaller-scale projects by renewing solar rebates for residential solar PV installation. The objective of this measure is to encourage households and small businesses to invest in residential systems where they can save up to 30% of initial costs. To stimulate local small businesses, the households, must prioritize local contractors for system installation. The project is funded by the Jordan’s Renewable Energy & Energy Efficiency Fund (JREEEF) which also provides loan products to households for renewable and energy efficient upgrades.

Facing many challenges recently including increased energy costs, high unemployment for new graduates, a financial crisis, and overpopulation caused by the vast flood of refugees has left Jordan at a critical crossroads to combat climate change impacts and achieve its Sustainable Development Goals; one in which diversifying the energy mix and increasing investment in renewable energy at the household level can become a catalyst towards overcoming these development challenges.