Gov’t renewable energy fee ‘threatens progress’ in sector — stakeholders

AMMAN — Stakeholders are calling for the cancellation of a recent government decision to impose fees on renewable energy users, representatives said on Sunday.

In a statement made available to The Jordan Times on Sunday, the EDAMA Association for Energy, Water and Environment said that the government’s decision to impose a JD2 per kilowatt-hour fee on users with renewable energy systems will negatively impact the economy and deter individuals from installing renewable energy systems.

“When the legislation is unstable, it reduces trust between investors and the government, and thus they give up investing in Jordan,” EDAMA Association Member Hanna Zaghloul told The Jordan Times.

Citizens who implement renewable energy within their homes as a cost-saving measure, often choosing to use the savings for other priorities, such as their children’s education, will also lose this money, Zaghloul said.

President of Jordan Environment Union (JEU) Omar Shoshan said that the decision constitutes a “negative indicator” for investment in the renewable energy sector due to the instability caused by fluctuations in government policies. Such practices limit the provision of new green job opportunities in the sector, he added.

The decision runs counter to the Green Growth Plan, the Nationally Determined Contributions to Reducing Emissions and the Economic Modernisation Vision, Shoshan added.

Renewable energy constitutes a crucial component of the Jordanian energy mix and energy independence, as the country relies heavily on imports of oil and natural gas. The renewable energy sector in Jordan has witnessed steady growth over the past decade, attracting investments of over $5 billion and creating thousands of direct and indirect job opportunities, according to the EDAMA statement.

“The sector’s role in putting Jordan on the regional and global map for renewable energy cannot be ignored. This sector has contributed to improving energy security, reducing greenhouse gas emissions, and the country’s efforts to combat climate change,” the association said.

The statement also noted that the decision was taken consulting the private sector, adding that the decision threatens the progress made in recent years in developing Jordan’s renewable energy sector, according to a statement issued by the association on Sunday.