About the Sector:
Like many developing countries, Jordan is under a number of constraints deriving from the fact that it has insufficient natural resources. However, realizing the importance of electrical energy in socio-economic development, the government has made significant effort to ensure the provision of a secure and reliable supply of electricity at minimum cost to Jordan’s population and to the different sectors of the economy. In order to achieve this goal, the government has adopted a strategy since 1967 which focuses on building a modern and reliable electricity system based on large central power plants, reliable high voltage network, electrification of all villages and rural attachments and interconnection with neighboring convey.
The electricity industry started in Jordan in 1938 when a group of entrepreneurs established a small company to provide electrical energy to the capital city of Amman. In 1947 that company was converted into ashare-holding company called the Jordan power electricity company (JEPCO) which was granted a concession to generate and distribute electricity in Amman and its suburbs. JEPCO’s concession was renewed in 1962 for fifty years and extended to cover four governorates in the central part of Jordan including Amman. At present JEPCO supplies electricity to about 64 % of the total electricity consumers. In 1961, another privately owned electrical power company called Irbid District Electricity Company (IDECO) was established to generate and distribute electrical energy in the northern part of the country. IDECO supplies electricity to about 23% of the total consumers. In the southern part of the country, electrical energy was provided by several municipalities through small unreliable Diesel engines.
In 1967, and realizing the need for a modern and reliable electricity system, the government established the Jordan Electricity Authority (JEA), under the provisions of the general electricity law. JEA was entrusted with (i) generation of electrical energy through modern and reliable power plants (ii) transmission of electrical energy through a reliable high voltage network (iii) distribution of electrical energy in all areas that are not covered by the privately owned distribution companies and (iv) implementing a rural electrification program to ensure that all inhabitants of Jordan would have access to electricity by the year 2000. JEA was autonomous government institution enjoying juristic personality with finical and administrative independence. It was directly distributing electricity to approximately 13% of the country consumers. In September 1996, JEA was converted to a public share-holding company wholly owned by the government called the National Electric Power Company (NEPCO).
Until 1974, electricity was generated from two small and unreliable Diesel stations. After the establishment of JEA, the installed capacity grew at a rapid growth rate to meet the demand and to provide sufficient reserve. Currently, the total installed Power generating capacity in Jordan is about 3309 MW. The system’s peak load is about 2660 Mw. Approximately 100% of the population is supplied with electricity.
In addition, the Jordanian Power System is interconnected with that of Egypt and Syria. It is helping mainly to face loads at real peak hours and in cases of outages of the generation units.
2-Development Stages
The power sector passed through four major components including:-
(i) Amendment of the electricity law to allow for the establishment of an independent regulator and private sector participation in the sector and its functions and provide legal basis of restructuring (Implemented).
(ii) Restructuring of NEPCO into three operating companies for:-
(a) Generation- the Central Electricity Generation Company (CEGCO).
(b) Management, operation and development of high voltage network and load dispatching- The new NEPCO will remain a state owned monopoly to offer transmission and load dispatching services.
(c) Distribution, the Electricity Distribution Company (EDCO).(Implemented 1999)
(iii) The establishment of an independent regulatory commission in order to promote fair competition in the electricity’ industry and to protect the rights of customers as well as producers and sellers of electricity. (established in 2001)
(iv) Tariff reform: - the electricity tariff charged to all classes of consumers will gradually be reformed such that the tariff’ eliminates subsides and cross-subsidies, encourages energy conservation and loss reduction, covers cost of supply and provides reasonable rate of return to the electric utilities. (gradually implemented)
3-Recent Status
The General Temporary Electricity Law No.(64) ,year 2002 explained the mandates & Powers for both the Electricity Regulatory Commission and the Ministry of Energy & Mineral Resources in the Energy Sector. For more details please go to Main Menu (Regulatory Documents / Electricity Law).
However the electricity sector in Jordan includes now eight working utilities which are in brief:-
• Three companies in Distribution ( Jepco, Edco & Ideco ).
o Jepco is a private company working under concession agreement for middle areas of Jordan and it should be licensed in the year 2012.
o Edco which was established the year 1999 after restructuring JEA is responsible for distributing electricity in the southern and eastern areas of the country .Edco was privatized & licensed the year 2008 when the government sold its share (100 %), then returned back to the government the year 2011.
o Ideco is responsible for distributing electricity at northern part of Jordan. Ideco was privatized & licensed the year 2008 when the government sold its share (55.4 %), then returned back to the government the year 2011.
• One Transmission Company (Nepco) which is a wholly governmental company responsible for Transmission Network, Bulk Supply and System Operation.
• Four generation companies :-
o Central Electricity Generating Company (Cegco) with a nominal capacity of around 1669 Mw.
o Samra Electric Power Generation Company (Sepgco) with a nominal capacity of around 880 Mw.
o IPP1 (AES Jordan) which is a combined cycle with a nominal capacity of 380 Mw.
o IPP2 (Al-Qatraneh Power Generation Company) which is a combined cycle with a nominal capacityof 380 Mw.
The current Total Nominal Capacity of the Generation system is about 3309 Mw.
The Peak Load of the system reached 2660 Mw “ during summer season “ in the year 2011.
For more information see Main Menu (Electricity Companies).