Status of Green Finance in Jordan Prepared by Eng. Samer Zawaydeh, Msc, PMP, CRM, REP, AEE Life Member
Presented at USAID Jordan Water Reuse and Environmental Conservation Project Green Finance Conference at Royal Scientific Society December 10, 2013 , Amman, Jordan
Eng. Samer A Zawaydeh, Msc, PMP, CRM, REP, AVS Association of Energy Engineers Assistant Director for International Membership Development for Middle East
Independent Engineer, providing Contractual, Project Management and Value Engineering services to the Construction and Energy Management industries – – – – – – – – –
Bachelor in Civil Engineering - Structures Masters in Structural Mechanics, USA Environmental and Energy Engineering Master Program Project Management Professional, PMP Associated Value Specialist, AVS King Abdullah II Award for Excellence, Mentor Carbon Reduction Manager, CRM Renewable Energy Professional, REP Legend in Energy, 2012
– The Community Power Reporter, Middle East
• Membership – Association of Energy Engineers AEE, Life Member – Several Local and International Energy Associations Samer Zawaydeh, Independent Engineer, Dec 2013
Jordan Overview by The World Bank • • • • • •
Upper Middle-Income Country Limited natural resources Population 6.4 million; 80 % urban; 38 % under 14 Per-capita GDP of US$4,340 World’s 4th poorest country in water resources Services is 70 %of (GDP) and 75% of jobs
Samer Zawaydeh, Independent Engineer, Dec 2013
Jordan Population Pyramid for 2010 Indirect Age Groups Size ~2.4 Million Working ~1.2 Million
~3.2Million Studying
Education, Training, and SMEs needed to create Jobs and Move the Economy Samer Zawaydeh, Independent Engineer, Dec 2013
JORDAN BUSINESS ENVIRONMENT-2014 Rank 119
Source: http://www.doingbusiness.org/~/media/giawb/doing%20business/documents/profiles/country/JOR.pdf World Bank’s World Development Indicators 2013. Samer Zawaydeh, Independent Engineer, Dec 2013
Measuring National Progress
100
Samer Zawaydeh, Independent Engineer, Dec 2013
Green Finance to meet Demand
Source: TEDxCibeles, youtube “The Challenges of the future towards a green economy” by Juan Verde Samer Zawaydeh, Independent Engineer, Dec 2013
Dynamic Green Growth Stakeholders Public
Training Centers
Sector
Supplier s
Regulators
Developers
(ERC)
Customs & Taxes Departments
NGOs
Policy Makers
Testing Facilities
Stakeholders
Jordan National Building Codes
Contractors
Conferences
Media
Exhibitions
Universi ties
Financial Institutes
Electricity Generation Transmission Distribution
Samer Zawaydeh, Independent Engineer, Dec 2013
4-5% 40,000 Worker in Green Economy
Jordan’s Regulatory Environment Conductive to operating a Energy business National Energy Efficiency Action Plan Jordan Renewable Energy and Energy Efficiency Law 13 for year 2012
Regulation No. 73 year 2012 per Clause 18 of RE and EE Law 13 year 2012
Regulation No. 10 year 2013 - Issued per Paragraph (b) of Clause (11) of REEEL 13 year 2012-
Wheeling Instruction per Electricity Law (64) year 2002, article 7B3, 9B
Electricity Regulatory Commission (ERC) Regulations
National Plan for Electricity Company Losses Samer Zawaydeh, Independent Engineer, Dec 2013
Energy Codes
JISM Energy Specs
-
+
Solar Code 2012
Energy Labels
How are we Meeting the Challenge Awareness
Awareness and Training Jobs Adopt Best Practices Jobs Environmental Engineers Jobs Solar Energy Experts Jobs Efficient Buildings Jobs Efficient Transportation Energy Conservation Jobs Adopt Renewable Energy Waste Management Jobs
Education
Water Management Jobs Resource Monitoring Jobs Adaptation / Mitigation Policies Jobs
Samer Zawaydeh, Independent Engineer, Dec 2013
Faster – Smarter Solutions Wind
Solar Water Heaters
Solar PV
Geothermal
Waste Management
Energy Efficiency
Waste to Energy
Energy Efficient Behavior
Passive Design
Clean technology
Building Code Compliance
Building Energy Modeling
Increasing Energy Prices
CO2 Emissions Increase
Less Precipitation
Temperature Increase 2°C
Population + Demand Growth
Samer Zawaydeh, Independent Engineer, Dec 2013
Jordan- Adapt Locally, Lead Regionally 200M Water Networks Renovation Projects Waste Water Networks Renovation Projects 400M Energy EE/RE Projects 50M Growth in High Caliber Trained Professionals & Waste Projects 50M Companies Leading Projects in the Region Wind Projects 210M Electric Grid Upgrade Projects 50M Solar Projects Water Projects
300M
100M
Source: Estimates by Presenter Samer Zawaydeh, Independent Engineer, Dec 2013
Jordan - Turning Ideas into Action Solar Energy into Electricity Yingli Trina Philadelphia Solar Solar World Petra Solar Suntech Anpro Mecasolar Thinfilm ET Solar Others
15MW Installed &In-Progress 200 Million JD (2013 estimate) Source: Estimates by Presenter
Samer Zawaydeh, Independent Engineer, Dec 2013
Strong Green Market Drivers • • • • •
Establishment of Laws and Regulation Strong availability of PV & SWH Suppliers Strong Training of Professionals Renewable Energy Expression of Interest Implementing Customs and Tax Exemption
Current Market Barriers • • • • •
Weak Energy Awareness among consumers Lack of implementation of Energy Codes / Auditing Poor Efficient Transportation Solutions Lack of Benchmarking / Bylaws Implementation Slow micro funding for Energy Projects Samer Zawaydeh, Independent Engineer, Dec 2013
Green Jobs in Jordan Status and estimated by 2020 Sector
No of No of Percentage Workers* Green Jobs Green Jobs Public 306,140* 33,218** 10.8% Private 671,573* 35,000** 5.2% Total Current 977,713 68,218 6.9% Estimated Additional 52,000*** Jobs by 2020
Estimated by 2020
120,218
*According to the DOS report (http://www.dos.gov.jo/dos_home_a/main/cd_yb2011/pdf/work.pdf) ** Estimated according to the author’s research as of 2013. ***Presentation by Ministry of Environment at H2020, April 2013 Samer Zawaydeh, Independent Engineer, Dec 2013
12.3%
Jordan Banking Sector Annual Electricity Consumption (1066*GWH) Costs
Year Millions Source: Prepared by Presenter Samer Zawaydeh, Independent Engineer, Dec 2013
Jordan Banking Sector Electricity Tariff (2013-2017)
Year JD/kwh Samer Zawaydeh, Independent Engineer, Dec 2013
Jordan Banking Sector Cost of Increase Electricity Tariff (2013-2017)
Source: Prepared by Presenter Samer Zawaydeh, Independent Engineer, Dec 2013
Sources of Green Finance Amman Cairo Bank
Capital Bank
Ahli Bank
Investment Bank
Amman Chamber of Industry
European Investment Bank
Jordan Engineers Association
Jordan River Foundation
European Bank for Reconstruction and Development (EBRD)
World Bank
KFW
Scientific Research Fund
JEDCO
USAID
Gulf Countries Loans/Grants
Central Bank of Jordan
Clean Tech V/Cs
Private
Europe Aid program of the EC
Customs and Tax Exemptions
GIZ
UNEP
Netherlands Embassy
JICA
Investment
UK Embassy
Source: Prepared by Presenter Samer Zawaydeh, Independent Engineer, Dec 2013
Project Opportunities Energy Conservation, Efficiency and Renewable Projects with immediate Access to Finance at 722 Banks Branches Jordan Banks - Branches Inside Jordan 120
100
110
80
77 60
69 67 64
40
51 44 36
20
30 28 27 16 13 13 12 12 11
9
9
0
Source: Prepared by Presenter Samer Zawaydeh, Independent Engineer, Dec 2013
6
4
4
3
3
2
2
Example – Local Project International Financing Institutions & Banks 1. IFC International Finance Corporation 2. European Investment Bank 3. Eksport Kredit Fonden 4. OPEC Fund for International Development 5. FMO (Dutch development bank) 6. Europe Arab Bank 7. Capital Bank of Jordan
Source: http://renews.biz/55014/cashclinched-for-jordan-wind/
http://www.petra.gov.jo/Public_News/Nws_News Details.aspx?Site_Id=1&lang=2&NewsID=131554& CatID=13&Type=Home>ype=1 Note: (Nov2013 Announcement in Media)
Samer Zawaydeh, Independent Engineer, Dec 2013
Example – Local Project Local Finance Arab Bank (12.6M JD)
Arab Bank buildings in alignment with the internationally recognized BREEAM assessment method Source: http://www.arabbank.com/uploads/File/SustainabilityReport2012_English.pdf Samer Zawaydeh, Independent Engineer, Dec 2013
Step 1: Education Wind and Solar Capacity Building
Source: http://www.wecsp.org.jo/about Samer Zawaydeh, Independent Engineer, Dec 2013
Turning Ideas Into Action Jordan USA MEMR 65-75MW Solar
http://www.theatlantic.com/technology/archive/2013/11/solar-energywas-americas-sole-new-power-source-in-october/281867/ Source: http://www.memr.gov.jo/LinkClick.aspx?fileticket=z x5lTMFKZYU%3d&tabid=36
Samer Zawaydeh, Independent Engineer, Dec 2013
Small Green Loans/Grants Entity
30 Million JD
Description/ Estimate JD (Reports /Word of Mouth)
JEDCO
Grants (1.2M)
Jordan River Foundation
5000+ Solar Water Heaters at CBOs
Mercy Corps
75 systems (1KW each), Solar Water Heaters
Chamber of Commerce
Grants (250K Budget, 100K completed projects)
Ahli Bank
Go Green Loan (up to 40k, 5 years)
Amman Cairo Bank
Solar Water Heaters (Deduction from Salary)
Arab Bank
Sustainable Development (12.6M)
Capital Bank
Renewable Energy Projects (5M)
Tamkeen
Loans (5M)
UK Embassy
Direct Efficiency and Renewable Energy Sponsorship
USAID
Training, Education, Renovation, Clean Tech, Utilities
GIZ
Energy Efficiency, Water, Waste water
Japanese
Renewable Energy Pilot Project
Source: Prepared by Presenter
Samer Zawaydeh, Independent Engineer, Dec 2013
Summary Estimate Green Large Investments Description
Source of Finance
1500 Million JD Estimates Green Amount (Million JD)
Wind Project (117MW)
International Banks
200
Solar Projects
227MW – various sources
400
Construction Projects Renovation
USAID - Construction
40
Jordan Energy Sector Capacity Building
USAID – Energy
40
Jordan Competitiveness Program
USAID – Clean Tech
40
Millennium Challenge Corporation
USAID – Water
270
Aqaba LNG Terminal
Kuwait Fund
50
Energy Water and Social
Gulf Countries ($1327M)
400
Wind and Solar Capacity Building
Europe Aid program
10
Solar and Efficiency Projects
EU
50
Source: Prepared by Presenter
Samer Zawaydeh, Independent Engineer, Dec 2013
Required Improvement How Jordan and Neighboring Economies Rank on the ease of getting Credit
Samer Zawaydeh, Independent Engineer, Dec 2013
Culture Prepared for Change – Green Growth Statement delivered on behalf of His Majesty King Abdullah II bin Al Hussein The Hashemite Kingdom of Jordan By Dr. Jafar Hassan Minister of Planning and International Cooperation The United Nations Conference on Sustainable Development (Rio+20) , Rio De Janeiro, Brazil, June 20th 2012
• “Innovative financial and technical resources are needed to help implement national green development plans and develop green industry. Such 'green finance‘ can set the right value, incentives and revenues in various key sectors in addition to directing debt-swap arrangements for integrated green-growth programs in energy, water and environment. “ Samer Zawaydeh, Independent Engineer, Dec 2013
Thank you The Network Team ☺ for a High Quality Network Community
Samer Zawaydeh, Independent Engineer, Dec 2013
Thank you Questions ? Status of Green Finance in Jordan Presented by Eng. Samer Zawaydeh, PMP, CRM, REP, AEE Life Member Email:
[email protected], Mobile: +962.78.839.9453
at USAID Jordan Water Reuse and Environmental Conservation Project Green Finance Conference Royal Scientific Society December 10, 2013 , Amman, Jordan