Solar powered desalination
Solar powered desalination
Business Model Description
Develop and provide solar powered water desalination systems for sustainable and reliable water production
Expected Impact
Address the shortage in water resources through environment- friendly solar-power based water desalination technologies.
How is this information gathered?
Investment opportunities with potential to contribute to sustainable development are based on country-level SDG Investor Maps.
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Country & Regions
- Jordan: Countrywide
Sector Classification
Infrastructure
Development need
Sustainability Development Report 2019: score of 45.8 on SDG 6 (Clean Water and Sanitation) with “Significant Challenge Remaining” subscores prevalent across indicators; score of 41.7 on SDG 9 (Industry, Innovation and Infrastructure), with “Significant Challenge Remaining” subscores prevalent across indicators (1).
Policy priority
The National Water Strategy emphasizes desalination to meet shortfalls in freshwater availability and wastewater reuse. Currently, there are many desalination projects that have been implemented and tendered on a BOT basis. Sustainable and inclusive access to water is critical for the country’s long-term stability and prosperity (7).
Water Utilities and Services
Pipeline Opportunity
Solar powered desalination
Develop and provide solar powered water desalination systems for sustainable and reliable water production
Business Case
Market Size and Environment
50 private brackish-water desalination plants use electricity, with additional publicly owned plants
Currently, there are more than 50 brackish-water desalination plants privately owned by farmers use electrictiy from the grid. These plants range from small-medium to large scale and used for irrigation in the Jordan valley. In addition there are several publicly owned desalination plants.
This model can be expanded to seawater, waste water and brackish water in the country.
Indicative Return
15% - 20%
Benchmark investors in this space target IRR range between 10 to 17% (10).
Investment Timeframe
Medium Term (5–10 years)
Based on consulted benchmark projects, the projected investment timeframe is expected to be between 5 and 10 years.
Market Risks & Scale Obstacles
Capital - Requires Subsidy
Business - Supply Chain Constraints
Impact Case
Sustainable Development Need
Rapid population growth and the influx of Syrian refugees crisis raised the demand for water by more than 21% (7) and added pressures on water, wastewater, and power supply systems (8).
Rapid population growth and the influx of Syrian refugees crisis raised the demand for water by more than 21% (7) and added pressures on water, wastewater, and power supply systems (8).
By 2025 the Ministry of Water and Irrigation targets a reduction in the overall energy consumption in public water facilities by 15% and increasing the share of renewable energy to 10% of the overall power supply (9) .
Gender & Marginalisation
Smallholder farmers lack access to desalinated water which is safe for use in irrigation of plants and water for livestock. Farmers in the arid regions of Jordan may not have direct access to a steady supply of water or areas that are experiencing a drought.
Women who hold traditional family roles in the family face lack of accessible drinking water.
Expected Development Outcome
Access to clean water for households, businesses and farmers
Access to clean water for households, businesses and farmers
Reduced cost of water supply
Lower carbon emission
Gender & Marginalisation
Improved access to safe and potable water for women and girls
Primary SDGs addressed
6.1.1 Proportion of population using safely managed drinking water services
Secondary SDGs addressed
Directly impacted stakeholders
People
Gender inequality and/or marginalization
Planet
Corporates
Outcome Risks
The environmental impact of current desalination processes (disposal of the concentrated waste stream or brines) and the impact of intakes and outfalls on local eco-systems.
Impact Classification
What
The environmentally friendly water desalination technologies will reduce demand for water and shortage in resources.
Risk
Requires large investments, and subsidized water prices will require different operating models.
Impact Thesis
Address the shortage in water resources through environment- friendly solar-power based water desalination technologies.
Enabling Environment
Policy Environment
The government has established various policy and regulatory frameworks to support renewable energy generation in the country, this includes the Renewable Energy and Energy Efficiency law and various strategies.
Ministry of Water and Irrigation, National Water Strategy of Jordan, 2016 – 2025.
Technology Needs Assessment for Climate Change, 2017.
Financial Environment
Fiscal incentives: Renewable Energy and Energy Efficiency Law No. (33) of 2014 states that all systems, devices, and equipment of renewable energy sources are exempt from all custom duties and arae subject to the general sales tax at a rate or amount 0.
Regulatory Environment
Under by-law No. 14 of 2014, MWI assumes full responsibility for water and public sewage and all related projects in the Kingdom.
The Ministry of Water and Irrigation (MWI) is responsible for overall national leadership on policy, strategic direction and planning, in coordination with JVA.
Marketplace Participants
Government
Ministry of Water and Irrigation, Jordan Valley Authority
Non-Profit
Costa Crociere Foundation and Grieg Foundation
Target Locations
