Jordan New Energy Site 7MWh

The energy sector is one of the most vital sectors in the Hashemite Kingdom of Jordan due to its significant impact on sustainable development. Despite facing considerable challenges, including the lack of local energy sources and heavy reliance on imports, the sector has achieved remarkable accomplishments in recent years.

Imported natural gas and oil still account for approximately 76% of the electricity generated. Domestic resources, including renewable and traditional energy sources, represent 22% of the energy supply. However, the Jordanian government plans to generate 48.5% of electricity using local sources.

In response to this, Fichtner in collaboration with the Jordanian Ministry of Energy and the transmission system operator, NEPCO, has analyzed the potential for battery energy storage and, in the role of Transaction Advisor, is providing support for implementing a pilot project.

Work is also underway on a project to produce electricity from direct combustion of oil shale with a capacity of (470) megawatts, to be operational in 2020. The energy sector in Jordan has made significant achievements in recent years, but it faces various challenges.

According to a NEPCO report (NEPCO 2023), electricity consumption was consistently rising, with an increase of 3.7% and 5.7% observed in 2021 and 2022, respectively. Jordan can overcome its energy challenges by diversifying the country's energy mix and boosting renewables investment (IRENA 2021).

The energy sector poses one of the largest challenges for the Jordanian economy because it directly influences economic growth. The country's high dependence on imported intensive fossil-fuel sources (93% in 2021) has overburdened the national budget.