ENERGY SECTORImprove Energy Efficiency and Access, and enhance its competitiveness.
The energy sector has emerged as a key ingredient for business competitiveness and fiscal sustainability in Jordan.
Jordan does not possess significant oil and natural gas resources and is vulnerable to energy supply fluctuations. We aim to produce more energy domestically and reduce energy costs.
Jordan has a steady track-record of electricity reforms. The sector today has an unbundled, single-buyer market structure, with and independent regulator, private participation in generation and distribution, and installations of renewable energy capacity.
Building on this progress, Jordan has embarked on an energy investment programme, which aims to reduce reliance on imported products by expanding renewables, shale oil, and nuclear energy.
This pillar aims to enhance the competitiveness of the Jordanian economy while ensuring affordable electricity for the poor and the vulnerable.
Achieved
Diversification of energy resources including Hydrogen assessed
National Energy Strategy reviewed and updated
In Progress
Communication Strategy implemented
Energy Sector Communication Strategy prepared
Integrated food water energy nexus
Achieved
Electricity Sector’s Financial Sustainability Roadmap adopted
Electricity Bill Recovery Mechanism introduced
NEPCO Debt Optimization Plan approved by COM
2019 FSR implemented and updated
Financing to develop Jordan’s grid secured
Electricity export enhanced through regional interconnection
Tariff and subsidy reforms adopted by COM and published
New Household electricity tariff with targeted subsidies developed
Recommendations of electricity cost of service and tariff study implemented
Cost of Service and Tariffs Review findings circulated by government
NEPCO Debt Optimization Plan implemented
Cost of Service studies & proposals for tariff rationalization
Tariff and subsidy reforms implemented based on review
Improved risk management policies implemented and reported
Grid strengthened to increase trade; export enhanced through interconnection
Transmission and distribution loss targets developed
Electricity cost of service & tariff study finalized
In Progress
Separate audited annual accounts for each NEPCO SBU publicly disclosed
Achieved
Smart-Grid Management system requirements developed
New least-cost & risk-responsive Electricity Master Plan updated
Study on system design and readiness for wholesale market
In Progress
Studies & evaluations of single-buyer model & competitive readiness implemented
Achieved
Jordan Energy Strategy adopted incl. EE & RE targets
Energy Storage strategy developed
NEEAP update launched
Pumped storage feasibility study conducted
Geothermal business model developed
Gas distribution feasibility study conducted
E-mobility strategy developed & launched
Geothermal regulatory & policy framework developed
In Progress
Waste-to-Energy business model (thermal/electrical) studied
Waste-to-Energy regulatory framework developed
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