Solar water Pumping
Solar water Pumping
Business Model Description
Energy service performance contracting models with the private sector investing in and operating solar-powered water pumps
Expected Impact
Address the water scarcity and energy efficiency issues through the use of solar power for water pumping.
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
Renewable Resources and Alternative Energy
Development need
Jordan scores 92.2 on SDG 7 (Affordable and Clean Energy), 85.8 on SDG 12 (Responsible Consumption and Production), and 94.8 on SDG 13 (Climate Action) in Sustainability Development Report 2019, with 'challenges remaining' subscores prevalent across indicators (1).
Policy priority
Jordan’s energy strategy 2020-2030 stresses the need to meet the expected increase in energy demand driven by industrialization, population growth, economic growth, and refugees (5). This strategy aims to boost the contribution of renewable energy to reach 14% by 2030 up from 11% in 2020 (6).
Gender inequalities and marginalization issues
Main challenges facing gender empowerment in the energy sector in Jordan are gender data availability, collection, and analysis; the weak cooperation and coordination between all stakeholders working on women empowerment; the lack of education and awareness RE technologies and entrepreneurship in rural areas for both men and women. (6b)
Investment opportunities introduction
With about 39% energy consumption increase between 2010-2018 and projected 17% energy demand growth in 2030, Jordan faces high risk due to limited grid capacity (4). Jordan imports 93% of its fossil fuel, mainly for power generation and transportation (3).
Alternative Energy
Development need
As a water-scarce country, Jordan relies mainly on underground water resources. Water extraction involves costly and energy-intensive operations by deploying large water pumping, boosting and treatment, and distribution facilities. Population growth and the Syrian refugee influx raised the water demand by 21% (8), adding pressure on supply systems (9).
Policy priority
According to the energy strategy 2020 - 2030, 30% of farmers located in off-grid regions will be using solar PV pumping systems by 2030; 20% of grid-connected farms will have switched to PV solar-water pumping, and 20% of government water-pumping stations will also have switched to solar pumping (13).
Solar Technology and Project Developers
Pipeline Opportunity
Solar water Pumping
Energy service performance contracting models with the private sector investing in and operating solar-powered water pumps
Business Case
Market Size and Environment
10 well-fields and 15 network pumping stations could benefit from the water pumping system
This model can be expaanded to all wells of the Water Authority of Jordan (WAJ) and the Jordan Valley Authority (JVA). There are around 10 well-fields and 15 network pumping stations in Jordan, consuming around 16% of the electricity produced (16).
Indicative Return
> 25%
Energy service performance contracting models with the private sector investing in and operating the pumps, and sharing benefits demonstrated saving potentials of 33% and led to reduced energy cost: 280,000 EUR/yr and reduced energy consumption: 3.6 GWh/yr (15)
Investment Timeframe
Short Term (0–5 years)
A sample project payback period amounted to 2.6 years (15).
Ticket Size
USD 1 million - USD 10 million
Market Risks & Scale Obstacles
Business - Supply Chain Constraints
Business - Supply Chain Constraints
Human Capital
Impact Case
Sustainable Development Need
Jordan is one of the most water-scarce countries. Water supply relies mainly on underground resources located at considerable and increasing levels of depth. Consequently, water pumping costs are increasing. Water extraction involves an energy-intensive operation.
Rapid population growth and the influx of Syrian refugees raised the demand for water by more than 21% (8) and added pressures on water, wastewater, and power supply systems (9) .
Water pumping consumed around 16% of the electricity produced in the country (10) . High pumping inefficiency results in high costs and increased CO2 emissions (11) . There are also increasing maintenance costs due to the ageing of water pumping systems .
Expected Development Outcome
Increased energy efficiency contributing to a reduction in water supply costs (estimated 15% reduction in the specific energy consumption of billed water corresponding to a 0.46 kg reduction of CO2 emissions for the production per each billed cubic meter of water) by 2025 (12) .
Increased energy efficiency contributes to fiscal savings (as water is subsidized), resources that can be redirected to other priorities.
Gender & Marginalisation
Improved livelihood and agricultural practices for women and rural populations in Jordan
Increased income and higher control over natural resources
Primary SDGs addressed
7.2.1 Renewable energy share in the total final energy consumption
Secondary SDGs addressed
Directly impacted stakeholders
People
Gender inequality and/or marginalization
Planet
Outcome Risks
Disposal of old equipment (no recycling facilities in Jordan)
Impact Classification
What
The greater energy efficiency and use of solar power for water pumping will lower water supply costs, reduce the subsidization need of the sector and reduce GHG emissions.
Who
Households, businesses and farmers who benefit from better access to water sources
Risk
Low quality of equipment and inadequate operation and maintenance. Poor monitoring and evaluation of pump design and the retrofitting of pumping stations.
Impact Thesis
Address the water scarcity and energy efficiency issues through the use of solar power for water pumping.
Enabling Environment
Policy Environment
Energy efficiency for water pumping and increasing clean water supply to local communities are national priorities (18).
Energy security and the deployment of energy efficiency and renewable energy projects in the water sector has become a top priority for the country (19).
Financial Environment
Financial incentives: Investment promotion law of 2014 offers incentives to foreign investors and tax exemptions for renewable energy systems and equipment from customs duties and sales tax by Renewable Energy and Energy Efficiency law of 2012.
Financial incentives: Investment promotion law of 2014 offers incentives to foreign investors and tax exemptions for renewable energy systems and equipment from customs duties and sales tax by Renewable Energy and Energy Efficiency law of 2012.
Fiscal incentives: Incentives and subsidies offset high initial costs and encourage users to install these systems.
Regulatory Environment
The country has a favorable legislative framework, including bylaws related to energy efficiency and investment law
Energy strategy, 2020-2030.
Water strategy for the year 2016-2025.
Energy Efficiency and Renewable Energy in the Water Sector Policy, 2016.
Energy Efficiency and Renewable Energy in the Water Sector Policy, 2016.
The Renewable Energy and Energy Efficiency Law (REEEL) of 2012.
Marketplace Participants
Private Sector
Private sector partnership via performance-based contracts is crucial.
Government
Ministry of Energy and Mineral Resources
Target Locations
Jordan: Countrywide
References
- (15) Busche D., and Hayek B., 2015, Energy Efficiency in Water Pumping in Jordan, ACWUA Global 3000, Energy efficient water pumps in Jordan, https://www.dw.com/en/energy-efficient-water-pumps-in-jordan/av-46814728