Jordan News

The Ministry of Energy and Mineral Resources has started meetings with renewable energy producers in an attempt to renegotiate the selling price of alternative energy for the National Electric Power Company and electricity distribution companies, in the hope of reaching the previously agreed price reduction.

A recent agreement between the government and renewable energy producers set the selling price at 17 fils per kilowatt; However, the government had previous agreements with other companies that set the price range at 34-115 fils per kilowatt.

The official spokesman for the Ministry of Energy and Mineral Resources, Mashhour Abu Eid, said that the renegotiation is a step that the ministry is currently working on to reduce the cost of electricity and ensure justice towards all companies operating in this sector, on the one hand, and the National Electricity Company, on the other.

He pointed out that the renegotiation of prices aims to achieve an attractive and stable investment environment based on solid and fair foundations.

Abu Eid added that “the government started discussions earlier this week and intends to hold regular meetings with all companies. However, the results are still uncertain. He added that the ministry will announce the results as soon as they are confirmed.

Firas Blasmeh, an investor in the renewable energy sector, criticized the attempt to renegotiate, saying that the government had taken this step “to satisfy the Jordanians and win the support of the parliament.”

Blasme added that the existing contracts are international contracts, and that any attempt to renegotiate them is a wrong idea, and raises doubts about any possibility of reaching results.

He asked, “How can the government renegotiate the contracts that were signed and agreed upon two years ago?”

Moreover, Blasme believes that this move will discourage future investments in the renewable energy sector. “When you sign a contract with a certain body, you have to respect it, otherwise you will lose trust,” he said.

MP Ali Al-Khalayleh said that the energy file in Jordan is “still distorted”, and there must be an intention to restructure the renewable energy agreements.