Privatization of the Electricity Sector in Jordan: A Case Study of On-Site Power Generation

A.-H. Bassam and W.A. Massarweh (Jordan)

Keywords

: Deregulation of electric power industry, combined heat and power, onsite generation, feasibility study.

Abstract

The Jordanian government has recently taken several steps towards the deregulation and privatization of the electricity sector in Jordan. Based on the new regulations, private electricity power generation is now possible, although with some limitations on purely Independent Power Producers (IPPs). Still the new regulations offer great economic and strategic opportunities for companies welling to invest in on-site power generation. The current study includes a technical and economical study of an on site combined heat and electricity generation plant at the Nuqul Industrial Complex – JORDAN. This industrial complex houses three different industries: Al-Keena hygienic paper mill, MODAL Aluminum extrusion factory, and Quality Foods meet processing and packing factory. The three industries have common and high energy requirements, mainly electrical and process steam. The combined electrical and steam loads of the three industries presents an ideal case for on-site combined heat and electricity generation. The economic feasibility of such a project could only be achieved due to the recent deregulation of the electricity sector and the ability to sell the excess electrical power generated to the national grid.

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