The Amendment of the Renewable Energy Law .. The need to support the National Industry!

07-May-2019

As energy costs rise, which is the biggest challenge facing national industries and weakens their competitiveness in the domestic and export markets, there is a need to prepare a comprehensive strategy for the energy sector in Jordan, in consultation with the various sectors concerned, especially the industrial sector.

The current law is very unfair to the industry needs to be modified quickly; it affected the national industries working in the field of manufacturing energy-saving electrical devices, through the promotion of imports of these materials and prices dumping, offered the national industries to compete unfairly.

The current law also requires each manufacturer of renewable energy systems to review the government departments and provide a manufacturing formula for each import or purchase process to obtain a renewable energy system input exemption.

The law also imposes administrative and financial burdens resulting from obligating local factories to stock certain items and requiring a review of the income and sales tax department at each local purchase, while the importer can enter his goods once, giving him preference over the national industry.

In addition to the above, there is a conflict between the Renewable Energy Law No. 13 of 2012 and its amendments and the provisions of the new system No. 50 of 2018.

Article 4 of the law provides for the exemption of all renewable energy systems, equipment and equipment at all, while the provisions of the system have suspended the exemption of some renewable energy systems, equipment and equipment to obtain the prior approval of the Exemptions Committee. The Energy Law and its amendments clearly state the exemption of inputs Renewable energy systems There is no term "input input" that has been interpreted by the Exemption Committees and affected the industry.

Overall, the current law has not helped to localize the technology of manufacturing renewable energy systems, equipment and equipment, although investment in renewable energy has reached nearly $ 2 billion; it has not been accompanied by a clear government drive to strengthen the presence of the local component in renewable energy projects.

The rearrangement of the working environment in energy is a first step, aimed at restoring the momentum and stimulate demand for the national industry, which will be reflected on the overall macroeconomic indicators and is in the interest of citizens and economy, especially the operation and investment, especially external.

* Head of "Made in Jordan" campaign and writer in economic affairs









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