Project description

Title: Improvement of energy efficiency of the Water Authority of Jordan (IEE)
Commissioned by: German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU)
Country: Jordan
Lead executing agency: Water Authority of Jordan
Overall term: 2008 to 2013

Context

In Jordan, the secure supply of energy, a reliable water supply and the fight against climate change are all closely interlinked. The Water Authority of Jordan (WAJ) is the largest electricity consumer in the country, using about 15% of the total electricity production. This is not only expensive, it also causes extensive greenhouse gas emissions, since Jordan’s power supply is based almost entirely on fossil fuels.

In Jordan, fresh water has to be pumped around 1,400 meters from the Jordan Valley up to the consumers in the cities. One of the main reasons for the high electricity consumption is the great operational inefficiency of the water pumps used to do this. To reduce the burden on the national electricity supply and avoid electricity blackouts, there is an urgent need to tap into potential power savings within WAJ. This will free up additional capacity for households and industry, and thus promote the economic development of the country.

Objective

The energy efficiency of the WAJ pump works has improved. New models have been developed and implemented for sub-contracting the operation of the pumping stations. Using private capital and donor funds, investments have been made in pumping stations, well fields and booster stations.

Approach

This was the first project worldwide to be financed through the International Climate Initiative of the German Federal Ministry for Environment, Nature Conservation and Nuclear Safety (BMU). It cooperates closely with WAJ and brings in private sector expertise and funding to achieve sustainable results.

The first phase of the project involved an energy audit of the major consumers of electricity in the three governorates of Balqa, Madaba and Zarqa. This was used to develop technical measures to reduce consumption. To help ensure the implementation of these measures is sustainable, the project also outlined some new institutional approaches and drafted appropriate contracts.

In Phase II, the project is now scaling up the best practice examples derived from Phase I, so that they can be implemented on a national scale. As far as possible, these approaches rely on private sector operational expertise and private finance, for example for the refurbishing and operation of the pumping stations. As a result, it should be possible for the WAJ to outsource the development and operation of pumping stations for some years to come.

This project represents the first step in a longer process of technical, institutional and economic innovation in Jordan's water sector, with private-sector cooperation being institutionalised on a contractual basis.

The project involves close cooperation with the German-Jordanian management of water resources programme.

Results achieved so far

In the pilot pumping stations energy consumption has been reduced by more than 30%, which amounts to savings worth approximately EUR 150,000 per year for WAJ. Greenhouse gas emissions have likewise fallen by more than 30% – equivalent to a reduction of 27,000 tonnes over the lifetime of the pumping equipment. Improved specifications written into the procurement process mean that pumps of higher quality are now purchased, which brings long-term financial benefits for WAJ. The staff of WAJ is now better trained and better aware of energy-efficiency in the pumping stations.

At the sector level, concepts and legal documents have been completed which govern the involvement of the private sector in financing and operating the pumping stations (so-called energy performance contracting). By developing the energy-contracting model in the water sector, the project has created a new market in which specialised energy management companies will now cooperate with traditional water companies to support innovation in the water sector. The new pump systems are now delivering a more reliable water supply to the Jordanian population.

The success of the measures piloted by the project has prompted considerable interest among other development partners in using similar approaches. As such, the project is having a beacon effect far beyond Jordan, as it shows that taking care of the environment can also have economic advantages.