Jordan Renewable Energy and Energy Efficiency Fund (JREEEF)

 

Jordan Renewable Energy and Energy Efficiency Fund (JREEEF) was created in 2012 by the EE and RE Law N°13/2012. The Fund is established according to the By-Law No. 49/2015 as an entity under the Ministry of Energy and Mineral Resources (MEMR). The basic purpose of JREEEF is to provide the necessary funding for the deployment of renewable energy sources and the rationalization of energy consumption, including small renewable energy facilities. It supports any program and the financial mechanisms allowing RE and EE users and investors to access financing from banks, local and international financial institutions.

The main JREEEF objectives are to support government in reducing the financial burden on consumers and the national economy, resulting from energy imports and subsidies to the energy sector. In addition, the fund aims to promote the development of a domestic industry as well as to open up new markets. A set of financial and technical support products have been developed including revolving credit, grants, loan guarantees, technical support and equity financing.

JREEEF focuses on funding decentralized renewable energy systems and has programs covering the following sectors:
* Household programs: Solar Water Heater (SWH), LED energy saving lamps, Solar PV systems.
* Small and Medium Enterprises (SME’s): Includes EE activities for the industrial sector for small and medium factories, and tourism sector for 4 stars hotels.
* Schools program: King Abdullah’s initiative for heating schools, implementing energy efficiency and renewable energy actions.
* Public and governmental institutions: Conducting the energy audits in governmental buildings, Solar PV systems for Public CBO’s and implementing solar PV systems for municipalities and health centers.
* Worship places: Installation of solar PV systems for worship places including mosques and churches.
* Agriculture sector: Implementing solar PV systems for small farms.
* Awareness and capacity building programs.

In order to implement these programs, JREEEF in collaboration with several development partners, pursues a number of funding mechanisms including financing programs developed with the support of the Central Bank in cooperation with commercial banks and Jordanian companies. The fund also provides loan guarantee services on behalf of these institutions, to guarantee loans and to provide the necessary financing for enterprise projects and factories at a zero interest rate.