The European Bank for Reconstruction and Development (EBRD) and the European Union (EU) are stepping up their support for Jordan’s energy sector by providing a €67.1 million financing package to the country’s National Electric Power Company (NEPCO).
This financing package consists of a sovereign-guaranteed EBRD loan of up to US$ 56.5 million (equivalent to €54.7 million), plus an EU investment grant of up to €12.4 million. These funds will finance the construction of a new high-voltage electricity substation in northern Jordan in order to improve the grid’s capacity, enabling it to handle existing and new generation in the north of the country. In addition to the new substation, four new overhead transmission lines will be constructed: two 400 kV lines providing connections to the existing Samra and Amman West substations, and two 132 kV lines connected to the Hasan Industrial and Jerash substations.
As Jordan pursues its ambitious renewable energy targets for 2030, the strengthening of transmission infrastructure is crucial to support the growing share of renewables. This new substation will not only improve the grid’s ability to handle additional generation capacity, but also facilitate cross-border interconnections, as well as reduce transmission losses by optimising power flows across the national grid.
The financing will be complemented by a comprehensive technical cooperation package, which will provide access to high-quality vocational training for men and women who want to work as electrical technicians, equipping them with market-relevant digital skills and energy efficiency competences. An EU-funded technical cooperation grant of €2.2 million will also be provided with a view to appointing a project implementation consultant for NEPCO.
The EBRD’s Head of the Eastern Mediterranean, Gretchen Biery, said: “We are proud to support NEPCO, in collaboration with the European Union, in developing vital transmission infrastructure that strengthens Jordan’s power sector. This project enhances regional interconnectivity and supports the country’s green transition, in line with its Economic Modernisation Vision.”
The EU’s Ambassador to Jordan, Pierre-Christophe Chatzisavas, said: “Jordan can count on the European Union as it advances its green transition. By connecting renewable energy projects, this new infrastructure will not only help Jordan to address domestic needs, but also open additional avenues for regional cooperation.”
NEPCO’s Managing Director, Sufian Al-Bataineh, said: “We welcome the support of the EBRD and the EU in enhancing transmission infrastructure, in line with Jordan’s Economic Modernisation Vision to build a more resilient and sustainable power sector. This project will strengthen regional interconnectivity and advance the green transition. We look forward to continued collaboration to boost economic growth, energy security and sustainability.”
NEPCO is a state-owned public company. It is the owner and operator of Jordan’s transmission system, as well as the single buyer of electricity.
Since the start of its operations in Jordan in 2012, the EBRD has invested almost €2.3 billion across 74 projects, providing more than €815 million to projects in the country’s energy sector through 14 loans.
