PRR 50 | October 2024 ERF Policy Research Report - The Role of MSMEs

Table of Contents

• Chapter One: 8
• Introduction, Methodology, and Context 8
• 1. Introduction 8
• 2. Study objectives 8
• 3. Methodology 8
• 4. Quantitative and qualitative tools 9
• 5. Data gathering and analysis 9
• 6. RE landscape in Jordan 9
• 7. Role of MSMEs in RE development 10
• 8. Challenges faced by MSMEs 10
• 9. Role of MSMEs in the economy and society 12
• 10. Government commitments to MSME’s 12
• 11. Overview of relevant stakeholders 12
• 11.1 Governmental and regulatory authorities 12
• 11.2 Generations transmission and distribution companies 12
• 11.3 The end users 13
• 12. Market operations 13
• 13. Jordan’s energy security concerns 14
• 14. Policy framework and international commitments 14
• Chapter Two: 15
• Impact of Public Policies on MSMEs 15
• in the Energy Transition 15
• 1. Introduction 15
• 2. Financing opportunities and challenges 16
• 3. Barriers to and incentives for MSMEs’ participation in clean energy initiatives 16
• 4. Regulations and institutions 16
• 5. Technologies and technical capacity building 17
• 6. Social and consumer factors 18
• 7. Enterprise strategies and awareness 18
• Chapter Three: 21
• Impact on Different Economic Sectors 21
• 1. Introduction 21
• 2. Impacts of the RE transition on economic sectors in Jordan 21
• 3. Evaluation of the challenges and opportunities faced by MSMEs within each sector 21
• Chapter Four: 23
• Impact on Inclusive Economic Growth, Innovation and Competitiveness 23
• 1. Introduction 23
• 2. Importance of the energy transition in generating green jobs for the long-term SDGs 23
• 3. Contributions of MSMEs in the RE transition to inclusive economic growth, job creation, and poverty reduction 23
• 4. Opportunities for inclusion of vulnerable groups in economic sectors 24
• 5. Collaborations and partnerships between msmes and larger energy companies 24
• 6. Involvement of MSMEs in research and development for energy innovations 25
• 7. Impact of the RE transition on MSMEs, the labor market, skills demand, (re)training of workers, and highlighting marginalized groups 25
• 8. Effects on the competitiveness of MSMEs in local and international markets 26
• Chapter Five: 27
• Impact on Achieving Sustainable Development Goals (2030) 27
• 1. Introduction 27
• 2. MSMEs in the RE transition contributing to achieving specific SDGs 27
• Chapter Six: 29
• Opportunities and Constraints 29
• 1. Introduction 29
• 2. Identifying opportunities for MSMEs in the RE sector 29
• 3. Technical challenges for grid stability and infrastructure 29
• 4. Discussions with experts on constraints and barriers faced by MSMEs 31
• 5. Opportunities created by the RE transition for the labor market 31
• 5. Political, administrative and economic constraints to a RE market 31
• 5. Financial constraints and investment needs 32
• 6. Notable Examples of successful energy transition implementation with MSME involvement 33
• 7. Lessons learned and best practices from successful cases 34
• 8. Technological limitations and infrastructure requirements 34
• Chapter Seven: 36
• Conclusions and Recommendations 36
• 1. Conclusion 36
• 2. Summary of MSME surveys and interviews 36
• 3. Recommendations 36
• References 37
• Table 1. Categorization standards sorted by sector industry (I), services (S), and trade (T) to register 9
• and formalize MSMEs 9
• Table 2. Domestic electricity consumption breakdown according to the Jordan department of statistics 11
• Table 3. MSMEs perceiving RE technologies as within their financial means sorted by workforce sizes of micro (<6), small (6-19), and medium (20-99) 17
• Table 4. MSMEs’ opinions on government interventions supporting the RE adoption sorted by workforce sizes of micro (<6), small (6-19), and medium (20-99) 17
• Table 5. MSMEs’ access to information regarding fuel prices sorted by workforce sizes of micro (<6), small (6-19), and medium (20-99) 19
• Table 6. MSMEs’ awareness of government interventions supporting the adoption of RE technology sorted by workforce sizes of micro (<6), small (6-19), and medium (20-99) 19
• Table 7. MSMEs with access to an early warning weather system, sorted by workforce sizes of micro (<6), small (6-19), and medium (20-99) 20
• Table 8. MSMEs’ opinion on government subsidies for electricity, sorted by workforce sizes of micro (<6), small (6-19), and medium (20-99) 20
• Table 9. MSMEs’ opinion on government subsidies for electricity, sorted by workforce sizes of micro (<6), small (6-19), and medium (20-99) 20
• Table 10. MSMEs’ sentiment on RE technology enhancing daily operations sorted by workforce sizes of micro (<6), small (6-19), and medium (20-99) 21
• Table 11. MSMEs’ sentiment on installation and maintenance of RE sorted by workforce sizes of micro (<6), small (6-19), and medium (20-99) 22
• Table 12. MSMEs’ consideration of using RE sorted by workforce sizes of micro (<6), small (6-19), and medium (20-99) 24
• Table 13. MSMEs’ previous month’s spending on electricity sorted by workforce sizes of micro (<6), small (6-19), and medium (20-99) 26
• Table 14. MSMEs’ previous month’s spending on electricity sorted by workforce sizes of micro (<6), small (6-19), and medium (20-99) 26
• Table 15. MSMEs’ consideration of using RE sorted by workforce sizes of micro (<6), small (6-19), and medium (20-99) 28
• Table 16. MSMEs’ consideration of using RE sorted by workforce sizes of micro (<6), small (6-19), and medium (20-99) 28
• Table 17. MSMEs using RE and paying taxes on their energy production sorted by workforce sizes of micro (<6), small (6-19), and medium (20-99) 30
• Table 18. MSMEs’ sentiment on RE reducing costs sorted by workforce sizes of micro (<6), small (6-19), and medium (20-99) 30
• Table 19. MSMEs experiencing electrical outages (frequency and duration) sorted by workforce sizes of micro (<6), small (6-19), and medium (20-99) 30
• Table 20. MSMEs experiencing electrical outages (frequency and duration) sorted by workforce sizes of micro (<6), small (6-19), and medium (20-99) 30
• Table 21. MSMEs’ knowledge about backup generator technology sorted by workforce sizes of micro (<6), small (6-19), and medium (20-99) 31
• Table 22. MSMEs’ RE installments sorted by workforce sizes of micro (<6), small (6-19), and medium (20-99) 32
• Table 23. MSMEs’ access to information on variations in electricity tariffs sorted by workforce sizes of micro (<6), small (6-19), and medium (20-99) 32
• Table 24. MSMEs’ belief that RE tech would reduce energy costs sorted by workforce sizes of micro (<6), small (6-19), and medium (20-99) 33
• Table 25. Do MSMEs plan to invest in RE technology sorted by workforce sizes of micro (<6), small (6-19), and medium (20-99) 33
• Table 26. Would expert recommendations encourage MSMEs to adopt RE technologies sorted by workforce sizes of micro (<6), small (6-19), and medium (20-99) 35
• Table 27. MSMEs’ access to RE supporting infrastructure sorted by workforce sizes of micro (<6), small (6-19), and medium (20-99) 35
• Table 28. MSMEs’ opinion on the availability of RE tech providers sorted by workforce sizes of micro (<6), small (6-19), and medium (20-99) 35