ENERGY SECTOR
Improve 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.
Reform Area
9.1 ENERGY SECTOR POLICY AND GOVERNANCE
Achieved
2018 – 2023
Diversification of energy resources including Hydrogen assessed
National Energy Strategy reviewed and updated
In Progress
2024
Communication Strategy implemented
Energy Sector Communication Strategy prepared
Integrated food water energy nexus
Reform Area
9.2 ENERGY SECTOR’S FINANCIAL SUSTAINABILITY
Achieved
2018 – 2023
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 Jordan electricity cost of service and tariff study implemented
Cost of Service and Tariffs Review findings and recommendations circulated government
NEPCO Debt Optimization Plan implemented
Cost of Service studies · Proposal of options for alternative tariff rationalization pathways · as well as enhancement of client capacity
Tariff and subsidy reforms implemented based on review
In Progress
2024
Improved risk management policies implemented and reported by single buyer
Grid strengthened to increase trade; electricity export enhanced through regional interconnection
Separate audited annual accounts for each of NEPCO’s Strategic Business Unit disclosed publicly
Transmission and distributional loss targets prepared based on Cost of Service and Tariff Review’s findings
Jordan electricity cost of service and tariff study task finalized which includes regulatory and technical power sector assessment, and cost of capital calculation
Reform Area
9.3 COMPETITIVENESS OF ELECTRICITY MARKET
Achieved
2018 – 2023
Smart-Grid Management system requirements developed
In Progress
2024
The studies and evaluations of the single buyer model and the readiness of the sector to a competitive system implemented
New least-cost and risk-responsive Electricity Master Plan updated
Study on the current system design and the requirements and readiness to move to wholesale market conducted
Reform Area
9.4 ENVIRONMENTAL AND CLIMATE RESPONSIVE MEASURES
Achieved
2018 – 2023
Jordan Energy Strategy adopted, including updated Energy Efficiency and Renewable Energy targets
Energy Storage strategy developed
National Energy Efficiency Action Plan (NEEAP) update launched
Feasibility study of pumped storage
Geothermal sector business model developed
Gas distribution network feasibility study conducted
Waste to Energy regulatory and policy framework developed
E-mobility strategy developed and launched
In Progress
2024
Geothermal regulatory and policy framework developed
Waste to Energy (thermal, electrical), sector business model (biofuel, waste, wastewater) studied
Line Agencies
