Successful Transformation Processes of Energy Companies from Mere Producer to Supplier of Energy Services

  • Project no.251847
  • Duration 05/2019 - 09/2019

The energy system of Jordan has to challenge with rising energy demand and limited own conventional energy resources. Especially regarding the high import dependency, Jordan is starting to change its energy system and places e.g. more importance on renewable energy (like wind and solar) and energy efficiency. Jordan's government plans to increase the electricity generation capacity from renewable energy sources up to 1.8 GW by 2020, setting a target of 10 per cent primary energy demand from renewable energy by 2020. Jordan has also set up a National Energy Efficiency Action Plan (NEEAP) and plans to achieve a 20 per cent reduction of primary energy consumption by 2020.

The electricity market is still dominated by a few big companies, especially by the state-owned National Electric Power Company (NEPCO). NEPCO purchases the electricity produced as single buyer and sells it on to the operators of the distribution networks. In this system, NEPCO bears the full financial risk. The electricity price for end consumers is subsidised based on the profits or losses of the electricity sector as a whole. Subsidies have already been reduced, but are still valid for consumers up to 600 kWh/month. One of the current challenges for NEPCO is the fact that more and more customers start producing their own electricity based on the shrinking prices for renewable energy based electricity. As a consequence of the increasing share of renewable energies in the system and more self-supplying consumers of electricity for the company and its assets (transmission grid) the need for starting a successful transformation process seems to be obvious.

In this project the researchers will provide an overview of the energy sector transformation in Germany and will also include examples from other European countries for specific aspects where useful. In a second step they will provide a guideline for developing successful energy services and energy efficiency services. Even though the framework conditions in energy markets vary and a complete transfer of successful elements is not possible, some basic elements can be identified that have to be taken in mind for shaping a promising transformation process. Last but not least, the project team will discuss the transferability to Jordan. In order to achieve the highest value possible out of it, some short interviews will be carried out.

Project team




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