Jordan Renewable Energy - OECD

1 Take advantage. Turn to Jordan . Jordan Renewable Energy Projects & investment Opportunities Dr. Bashar Al-Zu bi, Senior Advisor to the CEO December 2010 2 and is the natural gateway into Iraq and its tremendous reconstruction and growth potential. Jordan is considered an ideal base location for Iraq based businesses due to geographic proximity, security, and infrastructure Jordanian exports to the Iraqi market have doubled between 2003 to 2008 to reach $ billion* With imports of billion USD in 2008, Iraq presents a clear and large market potential for different goods & services. Iraq is projected to maintain a 7% growth rate into 2010, and increase in 2011 to , driven primarily by oil revenues ** * Source: Central Bank ** Source: IMF 3 Beyond MENA, Jordan is a virtual hub that provides access to a number of international markets through a series of free trade agreements Jordan s virtual hub allows free market access to over 1 billion consumers through its trade and investment agreements.

2 Turkey FTA Singapore FTA Canada FTA Aghadir Agreement Greater Arab Free Trade Agreement (GAFTA) US FTA EU Association Agreement Qualified Industrial Zones Agreement (QIZ) 4 and presents clear enablers to help your business grow. Regulatory environment committed to free markets principles Political Stability & Rule of Law Strong legal framework and intellectual property protection rights; ranked 30th globally in IP protection Ranked among the top ten countries globally in organized crime prevention(* 30 out of 130 countries surveyed, WEF Global Competitiveness Report 2009 2010) 5 and presents clear enablers to help your business grow. GDP reached almost $23 billion in 2009, averaging real growth over the past 5 years * Economic Stability Stable currency that promotes trade and investment; has maintained a steady exchange rate to the US dollar since 1995 Outstanding external public debt reduced to 23% of GDP in 2009 (down from in 2004) * - central bank of Jordan Solid and healthy banking sector 6 and presents clear enablers to help your business grow.

3 Young population with almost 70% under the age of 30 Skilled and Talented Human Capital The highest literacy rate in the region 92% Has one of most qualifiedcompetitive and productive talent pools in the region. with labor rates considerably lower than those in other countries in MENA Named top performer (1st in Arab world) in education reform in MENA region. Invests >20% of GDP on lifelong learning. 7 and presents clear enablers to help your business grow. Three international airports Reliable & Well Connected Infrastructure Aqaba Sea Port Five road-linked borders providing access to over 330 million consumers A modern telecommunications infrastructure Jordan scored in the Networked Readiness Index of 2006 2007 rankings making it the 5th highest among Arab countries* - WEF 8 What do you see?

4 We see a growing market. We see a highly educated workforce. We see strategically placed free zones. & We see 21st century infrastructure. 9 So how can you take Make the Most of Fresh Opportunities. Jordan s strategic investment focus is on key business sectors, with innovation at their heart. These sectors for future success are built on four cornerstones: a strong business environment; a world-class skills base; a world-class infrastructure meeting the needs of business; and an economy embracing the opportunities arising from transition to Renewable Energy . Take advantage. Go Jordan . Page 10 EWE & Clean Energy Healthcare & Pharmaceutical Mega Projects ICT Tourism General Industries 11 JIB has assessed fresh opportunity ideas in line with sector strategies in Jordan .

5 The invest Jordan EWE & clean Energy advantage. The right place. The right time. Page 13 Our Challenge In Jordan 14 Consider your home Energy challenge No indigenous Energy resources High dependency on imported Energy High cost to the economy with Energy imports accounting for more than 13% of GDP Primary Energy demand is expected to double between 2008 and 2020 0% 50% 100% 2008 2015 2020 Imported Engery Domestic Resources 0% 20% 40% 60% 80% 100% 2008 2015 2020 Oil natural Gas Renewable Energy Imported Electricity Oil Shale Nuclear Power Jordan s Energy Sourcing Mix Features Jordan is considered as a hub and transit country and can play a major role linking oil, gas and electricity network among the region.

6 The country has a huge potential of : Energy resources (oil shale, uranium). Renewable Energy utilization (wind, solar). In regard of oil and gas , Jordan has not been explored yet. Renewable Energy and Energy Efficiency Law Main Goals Provide a legal mandate for the government and a regulatory framework for RE and EE development. Encourage private-sector investment in RE. Diversify Energy sources in Jordan . Reduce greenhouse gases. Develop in-country expertise related to RE and EE 17 Energy Demand Jordan witnesses high growth of Energy demand Period Electricity Demand growth (%) Primary Energy Demand growth (%) (2008-2020) growth of Primary Energy Demand Med.

7 Demand6000700080009000100001100012000130 0014000150001600020072009201120132015201 72019 Year 1000 TOEThe expected demand for primary Energy amounts is 15 million tons of oil equivalent in 2020 compared to million tons of oil equivalent in 2008. Energy Strategy ( 2007-2020) MAIN GOALS : Diversifying the Energy resources Increasing the share of local resources in the Energy mix . Reducing the dependency on imported oil Enhancing environment protection This will be achieved through : Maximizing the utilization of domestic resources (oil shale, natural gas, etc.) Expanding the development of Renewable Energy projects Generating electricity from nuclear Energy 19 As your investment opportunity at your own home.

8 $2 400 $5 800 $3 400 $2 100 $3 800 $150 $0 $2 000 $4 000 $6 000 natural Gas Power Sector Oil Renewable Energy Oil Shale Enegery Efficiency In order to achieve our transformational master Energy plan, we are investing over $18bn in our Energy sector Your opportunity to leverage our strategic focus on the top half of the green Energy value chain covering opportunities in assembly, installation, integration, testing and support With a fast growing local market acting as your test bed and a strategic geographical location providing a launch pad to the region, Jordan is the natural home for your Energy investment and to help you, JIB has identified several projects that offer attractive rates of return that are above deposit rates.

9 0,0% 5,0% 10,0% 15,0% 20,0% 25,0% Wadiaraba Wind Farm Automated Solar PV Cell Production Line High-Density Insulation Gas Station Chain Polysilicon Production Landfill Gas Power Plant Concentrated Solar Power Generation District Energy Company Turnkey Solar Equipment Packager Investment (m) 21 Establishing a Renewable Energy & Energy Efficiency Fund: provide good financial framework to support Energy efficiency programs and Renewable Energy projects, to help achieve the targets set in the Energy Strategy; 10% Renewable and 20% Energy savings by 2020 . Funding resources are annual Budget allocations and Foreign donation. Allows for Bylaws to be issued for EE measures in different sectors.

10 Rethink market access and invest in new opportunities. Thank you. Take advantage. Turn to Jordan . Page 22