The bilateral energy partnerships bring together high-level intergovernmental dialogue with practical, goal-oriented project work. Involving the German private sector is also an integral part of the partnerships. The promotion of forward-looking energy concepts and private-sector innovation are thus strengthened worldwide and supported by the Jordanian-German Energy Partnership
The German energy transition plays a pioneering role with a global signalling effect. Driven by its domestic support scheme for renewable energies, Germany has made a significant contribution to the worldwide technological development of photovoltaic, wind power and biogas plants. This would not have been possible without strong players in the private sector, which provide investments, develop and scale technologies, and train expert personnel.
When it comes to private investment in the energy sector, Jordan is a frontrunner in the Middle East. Traditionally, private sector involvement has been higher in energy importing countries in the MENA region. Jordan, which imports the vast majority of its energy accordingly has a long-standing history of private investments in the sector. Additionally, the country has an international reputation for being an especially stable and investment friendly state in the region. Recent years have seen increasing investments in the sustainable energy sector after the government expedited the establishment of regulatory frameworks for sustainable finance practices. Whilst the negative economic effect of the Covid-19 Pandemic was felt globally, interviewees had a positive outlook on renewables in the Energy Partnership’s Business Climate Index in October 2020:
"The pandemic has improved outlook for renewable energies. Even the government's interest in renewable energies has increased recently and shifted to sustainable solutions, especially for the agricultural sector”
Jordan and Germany are on track to meet their ambitious emission reduction targets. In order to remain frontrunners in the challenge to achieve clean energy systems, the two countries are set to support further private investments in the sector. Although the two partner’s respective energy transitions differ in both challenges and opportunities, they share the wish to increase the security and sustainability of their energy systems.
Private sector cooperation between Germany and Jordan
Relations between Germany and Jordan are of stable and friendly nature, mirrored in decades of bilateral trade. In 2017, German exports to Jordan were worth approximately 747.6 million euros, and Jordanian exports to Germany about 27.4 million euros. In terms of imports, Germany is Jordan’s most important European trading partner. In this excellent trade environment Jordan offers excellent investment opportunities for German companies in the sustainable energy sector. The Jordanian-German Energy Partnership offers an ideal platform to kickstart and support such endeavours.
Private sector cooperation is an integral part of the Jordanian-German Energy Partnership to drive the energy transition in Jordan and Germany respectively. The Partnership aims to encourage private sector cooperation, create favourable market conditions, and showcase German best-practice technologies. German companies can benefit from reliable market information and channels of dialogue with energy policy makers. Besides renewable energy, the EP covers all topics relevant to the energy transition, ranging from regulatory frameworks for the national grid operator, sector coupling, energy efficiency, to hydrogen.
What we are doing in this sector:
APICORP (Arab Petroleum Investments Corporation) MENA Investment Outlook
AHK (German – Arab Chamber of Industry and Commerce)
GTAI (German Trade and Investment) Jordan
Export Initiative – Energy solutions made in Germany – Jordan