The Adamah Association for Energy, Environment and Water said that the energy sector had witnessed many changes and modifications in laws, regulations and policies after having signed agreements and implementation of contracts.
According to the documents prepared by the association, among these modifications are the changes to the laws on renewable energies, the changes in the national tax on the actions and the modifications to the authorization of electric vehicles (where the current government has strengthened the situation and aimed at the status of electric vehicles through obtaining the tax diploma on a certain number of years), in addition to the attempt to reopen the energy agreements, and Instructions), in addition to the current system) 2024 – The system of regulating the connection of renewable energy sources on the electrical system, exempting from renewable energy resources and consumption of rationalization energy, which requires exorbitant costs to install renewable energy installations on most economic sectors.
The last of these procedures consists in modifying the electricity license costs, according to what was stated in system n ° (17) of 2025, whether for renewable or traditional energy, without any respect for the volume of the generation of the establishment of the installation, whether it is a solar station or a wind, which led to an increase in costs to exceed 7 to 8 times the previous costs; Which negatively reflects current investors and the investment climate in Jordan in general.
The association has declared that this continuous methodology in the changes in laws, their legislation and regulations are incompatible with the economic vision which depends on the stability of the legislation and regulations, because it creates a state of instability between current and potential investors to invest in projects, and whose economic feasibility is based on the stability of laws and regulations, which weakens investments for companies maintenance and capacity of companies, and reflects the negative investments of companies and investment in investment and investment for companies and investments for companies and investments for companies with a negative investment, and reflect investments. In the sector, to the point of abstaining from it from international companies before local businesses, and thus wasting the opportunity to transfer modern technology, attract foreign capital and create job opportunities, which Jordan has desperately needed in our current situation.
In addition, the delay in the payment of payments due to companies, by the National Electricity Company (NEPCO), in addition to continuous demand to open agreements for re-negotiation of prices, leads to complications which include, for example, bank loans and internal companies’ internal obligations, which negatively reflects their commercial models and the reduction in the investor’s ability to Its obligations according to the contract signed, and to reduce state investments to fulfill its obligations in accordance with the signaling contract, and to reduce state investments.
The Association Considered That the Amending System for the 2025 Electricity Licensing Fees System is not consisting with the Economic Vision of Jordan and will cause Great Challenges to Jordan’s Future Vision in the Field of Technology and Energy, Which Aims to Become Jordan As A Pioneer in Sustainability and Innovation This amendment imposed on New Financial Burden on Energy Producers That Were Planned when Signing the Agreements, which Raises The Financial Burden on the Developed Company and Limits Its Ability to pay for its obligations with financiers, financiers reduce investments in the sector, because the need for sustainable solutions becomes more urgent than ever. Note that this increase in costs threatens the efforts made to develop and develop the energy sector in Jordan.
The association stressed that the financial damage caused by this amendment to the system considerably exceed the financial advantages which will be collected through this amendment, and the financial advantages can be estimated from the costs resulting from the modification of this system as follows:
• Increased costs for renewable wind energies = 105,000 Jordanian dinars * 8 companies = 840,000 Jordanian dinars.
• Increase costs for renewable sun energies = 1,250 Jordanian dinars * 1505 megawatts = 1,881,250 Jordanian dinars.
• Increase in traditional energy costs = 141,000 Jordanian dinars * 12 companies = 1,692,000 Jordanian dinars.
The approximate total of 4,413,250 Jordanian dinars is only the Jordanian, and these financial advantages are modest compared to the expected losses of investments and other sources of income that the sector is likely to bear because of this amendment in the system, and successive amendments to regulations and regulations weakened the association.
She said changes add unnecessary complications to the carbon credit program, which reduces Jordan’s benefits of opportunities that this program offers to support sustainable development and improve the national economy. In addition, these complications help reduce international financing opportunities and Jordan’s national vision, which negatively affects the implementation of sustainable development initiatives.
The association continued: according to the system, with the exception of the licensee by operating the electrical energy sources from solar energy sources, this amendment depends on the source of energy only when determining license costs, whether it is the source of wind or traditional sources without taking into account the amount of energy produced by each company.
For example, a company that generates 100 megawatts of wind energy pays the same drawings as a company that produces only 50 megawatts of the same source. This approach requires greater burden on small businesses compared to the largest companies, which limits investments and the growth of average and small projects.
The association added that with great progress in the fields of artificial intelligence, it is expected that the demand for energy will increase considerably, in particular clean energy. For example, databases should require energy up to ten times their current level to meet the needs of the development of artificial intelligence – including the energy necessary for the power of processing and climate within the center. By containing our national vision to become leaders in technology and renewable energies, Jordan has a unique opportunity to take advantage of this growing regional demand for energy and to make a major supplier of sustainable energy solutions to support this transformation.
The Adamah Association for Energy, Environment and Water stressed that the negative effects of this amendment to the system and successive amendments on regulations and regulations considerably surpass the advantages which are drawn to them, and therefore we urge the parties concerned to examine this amendment to the system and to the previous amendments to avoid the negative effects which may be attached to the energy series and Our dear Jordan.
It underlined the need for the public and private sectors to cooperate in the energy sector and that the private sector is involved in legal legislation and the changes in regulations to reflect a real partnership between the public and private sectors to achieve sustainable development objectives.
