Jordan - Country Commercial Guide
Renewable Energy

This is a best prospect industry sector for this country. Includes a market overview and trade data.

Last published date: 2022-12-14

Overview

Jordan is one of the leading countries in the Middle East and North Africa (MENA) region in renewable energy (RE) adoption and clean energy growth.  More than 20 percent of the electricity grid in Jordan is powered by solar or wind energy, with a target of 31% by 2030.  Exceeding this percentage will be challenging for Jordan unless storage solutions are implemented.  Furthermore, excess capacity, slow demand growth, and energy diversification efforts featuring non-renewable resources limit near-term opportunities for renewables projects.  As the government lifted the 1MW restriction imposed on all clean energy projects in mid-2022, the market should be monitored for opportunity over the medium term.   The Jordan National Energy Strategy 2020-2030 focuses on advancing energy security through improving energy efficiency, energy mix diversification, increasing RE’s share of the entire energy mix, reducing carbon emissions, and bringing down energy costs.  Furthermore, the strategy aims to reduce the reliance on (imported) oil fuels in producing electricity.  It envisions that by the end of 2030, 48.5 percent of the country’s electricity generation would come from local energy sources.  Jordan has long-term potential for additional RE, enjoying an average of 316 sunny days per year, having wind speeds ranging between 7 and 8.5 m/s, and having large desert areas with a low population.  Additionally, in line with Jordan’s commitments to the Paris Agreement, in Oct 2021, the Jordanian government updated its 2016 Nationally Determined Contribution (NDC) goal, committing to reducing its greenhouse gas emissions, from 14% to 31% by 2030.

Leading Sub-Sectors

  • Renewable Energy (solar energy, wind)
  • Renewable energy storage solutions

Opportunities

Jordan has medium- and long-term potential as an energy producer of non-conventional and RE. The following are potential opportunities that are either in process or in the pipeline over the medium term:

  • National Conveyance Project (NCP)

The $2.9 billion project will provide 300 million cubic meters of desalinated water from the Gulf of Aqaba to Amman per year. The NCP will be implemented by early 2024 and expected to produce desalinated water by 2028.  The project will include alternative energy sources to reduce carbon emissions in the project.

  • Energy Technologies:  Jordan is exploring energy storage solutions, which may also present opportunities for the U.S. energy sector.  Technologies and services related to efficiency gains, including smart metering and grid management, may also find opportunities.
  • Oil and Gas Exploration: Several international companies are conducting oil and gas exploration in Azraq, West Safawi, Jafr, Sirhan, Dead Sea, Rum, Petra and Northern Highlands.
  • Renewable Energy:  As Jordan addresses challenges associated with overcapacity in its electricity grid, opportunities for a range of renewable energy solutions may re-emerge over the medium and long term.

Resources

  • Jordan Ministry of Energy and Mineral Resources
  • Jordan Energy & Minerals Regulatory Commission
  • Jordan Investment Commission
  • Current Status and Future Investment Potential in Renewable Energy in Jordan
  • Jordan’s Energy, Water, and Environment
  • Sustainability of the Energy Sector in Jordan: Challenges and Opportunities

For additional information, please contact U.S Commercial Service - Jordan at office.amman@trade.gov