AMMAN (Petra) - His Majesty King Abdullah on Sunday stressed the need to start implementing projects designed to meet the Kingdom’s energy demands and to increase reliance on alternative and renewable energy sources.

The King, who yesterday received the National Energy Strategy prepared by a Royal committee, highlighted the importance of immediately implementing programmes to rationalise energy consumption and provide all incentives and exemptions to ensure the success of such plans.

In January, King Abdullah entrusted HRH Prince Hamzah with chairing a Royal committee to revise and modernise the national energy strategy.

Yesterday, King Abdullah also instructed the government to accelerate the endorsement of legislation necessary for the implementation of vital projects in the energy sector between 2007 and 2020, valued at JD14-18 billion.

Laws on electricity, minerals, petrol and renewable energy, as well as a geological survey commission need to be enacted for the implementation of the strategy.

The energy strategy seeks to increase dependence on local energy sources, from the current 4 per cent to 25 per cent by 2015, and up to 39 per cent by 2020 through the implementation of mega-projects in the field.

King Abdullah said privileges and exemptions should be given to institutions and entities that apply energy conservation systems.

The Monarch also gave instructions for the formation of a consultative steering committee, chaired by Prince Hamzah, to follow up on the progress of the strategy’s implementation, present proposals and ideas to build on achievements and to address loopholes to ensure the speedy implementation of the strategy.

The committee will be tasked with creating an excellence award that supports initiatives, scientific research and pioneering projects in the energy field to ensure a secure supply of energy.

The Monarch entrusted the committee with preparing studies and proposals to encourage concerned entities to support and invest in traditional and renewable energy resources.

The committee was also tasked with proposing programmes to motivate the private sector to use energy efficiently thus ensuring a secure supply during the coming decade.

In addition, the panel will be responsible for preparing periodic reports, including suggestions and recommendations to be implemented by concerned authorities.

The committee comprises the ministers of environment, finance, energy, transport, the Amman mayor, director of the Royal Court economic department, Nasser Lawzi and Sharif Zu’bi.

Prince Hamzah said the Royal committee has worked to implement King Abdullah’s directives over the past 10 months and had divided the strategy into four main sections.

It formed subcommittees on oil, electricity and natural gas, renewable energy and energy conservation, local and alternative energy sources, and legislation and good governance.

The strategy took the Kingdom’s energy demands for the next 15 years into consideration and proposed methods to guarantee meeting these demands, the Prince said.

He added that the strategy was revised by these subcommittees and World Bank experts.

Prince Hamzah said the strategy focused on how to utilise local resources such as oil shale and renewable energy to reduce reliance on imported resources.

He added that the fast-moving changes in the global energy sector, especially rising oil prices, will have a negative impact on a large segment of the population.

Prince Hamzah stressed the need for immediate implementation of some of the recommendations on legislation that govern the energy sector, especially reexamining taxes and incentives that might have a positive and direct impact on reducing the burden on citizens and the state.

Prime Minister Nader Dahabi said the committee’s recommendations are very important as they were prepared by highly competent experts, adding that the government will grant tax exemptions to all institutions and hotels implementing energy conservation programmes.

He added that the government will issue a decision on the Jordan Petroleum Refinery Company, in order to attract a strategic partner to implement an expansion project.

Dahabi said the government was interested in the implementation of projects in the field of renewable energy and others on the optimal use of alternative and renewable energy resources.

He added that the government will build a crude oil pipeline from Aqaba to the refinery in the near future, which was estimated at JD150 million three years ago, but currently stands at JD260 million.

Referring to gas imports from Egypt, Dahabi said he held talks with his Egyptian counterpart to increase the volume of gas as soon as possible, adding that the Egyptian prime minister promised to look into the issue.

According to Minister of Energy and Mineral Resources Khaldoun Qteishat, who also attended yesterday’s meeting, the strategy focuses on introducing oil shale as a local energy resource and renewable energy projects such as wind and solar energy, in addition to nuclear energy in the long-term to generate power and desalinate water.

He said increasing dependence on local energy requires the implementation of several projects.

Strategy recommendations

* To continue implementing programme to restructure the oil sector, open it for competition

* To expand generating power by implementing projects on a build, own and operate basis and by using oil shale, renewable energy sources and nuclear energy for power generation

* To follow up with Egyptian officials on importing additional quantities of natural gas and look into alternative natural gas resources from other countries

* To develop Al Risha gas field to meet local demands

* To speed up implementation of the Kamsha project, with a total capacity 30-40 megawatts, which will generate wind power by 2009

* To accelerate the implementation of the Fujaij project, which is expected to generate 60-70 megawatts of power; Al Harir project that is expected to generate 100-200 megawatts; as well as several projects in Wadi Araba, Maan and Mafraq

* To follow up on the implementation of agreements on oil shale signed with companies and to open the way for other firms to carry out detailed studies on the environmental impact of these projects

* To create a specialised unit for oil shale at the Ministry of Energy and Mineral Resources and the Royal Scientific Society

* To rationalise energy consumption and create a fund for energy efficiency and awareness campaigns on energy conservation

* To establish customer service offices to reach the largest numbers of citizens

* To grant exemptions to energy-saving vehicles and create a national award for rationalisation of energy consumption