Jordan has launched an energy efficiency programme for the industrial sector ‘Kafa'a’, the country’s Ministry of Energy and Mineral Resources announced.

The program is funded by the US Agency for International Development, and is being implemented in conjunction with Jordan Chamber of Industry.

It  aims to provide technical assistance to Jordanian industries to help them  adopt best practices in energy efficiency, reduce production costs, and improve productivity and competitiveness.

The Director of the Energy Sector Support Programme, Mary Warzala, said that the Kafa'a programme  aims to build self-capabilities for energy management, access new markets, facilitate access to green finance, and leadership in energy efficiency.

It will be implemented during the period 2023-2028.  The first phase, beginning 2023, will target the food, cateringagriculture  and livestock,  engineering and electrical, information technology, chemicals and the cosmetics industries.

The Minister of Energy and Mineral Resources, Saleh Al-Kharabsheyah, said the industrial sector contributes about 25 percent of the GDP directly, 40 percent indirectly, and employs about 250,000 workers.

He added that the ministry is currently working on issuing the third national plan for energy efficiency to complement the first and second national plans. The third plan aims to launch a national programme to reduce energy costs and improve competitiveness by studying all available opportunities to save energy.

He said the Ministry is currently working on  creating the appropriate environment to establish Energy Service Companies (ESCO) through the Fund for Encouraging Renewable Energy and Energy Rationalisation.

The Fund is also supporting  energy efficiency applications in the industrial sector along with the Jordan Chamber of Industry.

A national programme to deliver natural gas to industrial cities starting with Al-Muwaqqar and Al-Rawdah will be implemented this year, he said , adding  the Ministry has reduced electricity tariffs for the industry twice since 2020.

(Writing by Sowmya Sundar; Editing by Anoop Menon)

(anoop.menon@lseg.com)