Jordan advances grid-scale battery storage to bolster renewable energy integration

The initiative comes as Jordan's renewable energy penetration reaches 26 percent of the total energy mix by late 2023, creating new challenges for grid management amid fluctuating supply patterns.

Experts emphasized that the BESS project will provide essential frequency regulation, peak shaving capabilities, and voltage support services to accommodate the country's growing renewable portfolio.

"With current generation capacity exceeding demand by approximately 45 percent 6 megawatts of generation against 4 megawatts of load energy storage has become imperative for maintaining grid integrity," said Electrical Engineer Jamal Badran, a renewable energy specialist.

Badran further explained that the renewable energy component of Jordan's total energy mix reached 26 percent by the end of 2023, with plans to increase to 31 percent by 2030 according to the existing roadmap. "This growth places significant strain on the current grid infrastructure, necessitating high-efficiency solutions to preserve power system stability," he noted.

"To prevent this energy surplus from adversely affecting the electrical grid, battery-based electricity storage solutions are essential, particularly as the government and relevant authorities are working to modernize the electrical grid and transform it into a smart grid, which requires the capability to store excess electrical energy," Badran added.

The Cabinet's decision authorizes a competitive procurement process for the battery storage project under Regulation No. 66 of 2016, which amends the direct proposal system for renewable energy projects for electricity generation and grid connection.

The resolution explicitly stipulates that project approval remains contingent on demonstrating both technical feasibility and economic viability for the electrical system under the provisions of the regulation.

Mohammed Al-Taani, Secretary-General of the Arab Renewable Energy Commission, noted that the BESS project represents both a technical necessity and an economic opportunity given Jordan's growing renewable capacity, which now approaches 2.8 gigawatts, accounting for over 30 percent of generated power.

"The Cabinet-approved energy storage project is both a technical and economic necessity, considering the expected return on investment and its role in maintaining grid stability," Al-Taani stated. He emphasized the decision's economic significance for the electrical interconnection project, positioning Jordan as a hub for Arab electrical interconnection extending to Africa and Europe.

Al-Taani highlighted the decision's importance in strengthening renewable energy deployment in the kingdom and increasing its proportion in the energy mix according to the Ministry of Energy and Mineral Resources' strategy, thereby enhancing energy security and self-reliance in providing safe and efficient alternative energy.

Industry experts highlighted that the BESS implementation aligns with Jordan's updated energy strategy, which aims to increase renewable energy's share in the national energy mix from the current 26 percent to 50 percent by 2030 significantly more ambitious than the previous 31 percent target.

According to Hashim Aql, energy analyst, the project will deliver substantial macroeconomic benefits by reducing Jordan's energy import dependency, which currently stands at 96 percent of national requirements at an annual cost of $3.6 billion, equivalent to 13.5 percent of GDP.

"Energy storage reduces the financial burden of energy imports, particularly significant given that Jordan imports about 96 percent of its energy needs at a cost equivalent to 13.5 percent of GDP, with total energy requirements amounting to $3.6 billion annually," Aql explained.

He added that the shift toward renewable energy has significantly reduced this substantial bill, with solar and wind energy projects having provided approximately 2.6 gigawatts of power to date, contributing 27 percent of the kingdom's total electricity consumption. The new strategy aims to raise this percentage to 50 percent by 2030, revised upward from the previously planned 31 percent.

Aql pointed out that allowing battery energy storage systems for consumers, followed by expanding more broadly by offering tenders to benefit from produced energy, along with the Al-Mujib Dam pumped storage project with a capacity of 450 megawatts for 7 hours, will enhance the ability to utilize renewable energy sources.

Regarding the improvement of the balance of payments, Aql noted that the decline in global oil prices due to conventional energy policies in some countries may reduce the cost of energy imports for Jordan and support the balance of payments. "The higher the percentage of local renewable energy, the less reliance on imports, thus improving the trade balance," he explained.

Addressing electricity subsidies, Aql explained that the annual state subsidy amounts to approximately 400 million dinars. He noted that renewable energy projects help reduce this subsidy by lowering energy bills in government buildings by percentages ranging between 27-40 percent with modest investments, achieving financial savings of up to 6.7 million dinars annually from Renewable Energy Fund projects.

The storage initiative complements other strategic projects, including the 450 MW pumped-hydro storage facility at Al-Mujib Dam, and enhances opportunities for electricity exports through interconnection projects with neighboring countries including Iraq, Gulf states, Palestine, Lebanon, Syria, and Egypt.

Aql confirmed that the electricity storage project contributes to alleviating the burdens on the National Electric Power Company and reducing its losses through expanding the use of renewable energy and lowering the costs of generating electricity using conventional methods.

He highlighted the decision's importance in attracting foreign investments, similar to projects such as the 200-megawatt photovoltaic solar power station at a cost of $200 million with the UAE's "Masdar" company, the power generation project in Ma'an Governorate with Qatari, Japanese, and Jordanian investments amounting to about $170 million, and the Tafila wind energy station with a capacity of 117 megawatts.

Aql demonstrated that the cost of producing a kilowatt of renewable energy (approximately 4 piasters) is much lower than the cost of producing it by conventional methods (7.7 piasters), in addition to renewable energy providing stability in costs over the long term compared to fluctuations in oil and gas prices.

Experts emphasized that expanding storage capacity will not only drive further cost efficiencies but also create job opportunities in the renewable energy sector, train youth on modern technologies, improve the investment environment, enhance project feasibility due to reduced energy costs, and strengthen energy security while reducing dependence on unstable sources.

Earlier, Jordanian Minister of Tourism and Antiquities Lina Annab announced the discovery of a Pharaonic hieroglyphic inscription featuring a royal seal (cartouche) belonging to Pharaoh Ramses III (1186–1155 BC) in Wadi Rum Reserve in southern Jordan.