The Jordanian government has unveiled a broad package of energy reforms designed to reinforce the country’s electricity sector, expand renewable energy deployment, and improve the financial position of the National Electric Power Company (NEPCO). Introduced under agreements with the International Monetary Fund (IMF), the energy reforms are intended to increase the efficiency of the electricity system, lower production costs, and reduce Jordan’s reliance on imported energy by making greater use of domestic energy resources.
Among the principal measures is the planned implementation of a Time-of-Use (TOU) electricity tariff covering all consumer categories, including households. Under the new pricing structure, electricity tariffs will vary according to the time of day, encouraging consumers to shift more of their electricity usage to off-peak periods.
The government has already completed the installation of smart electricity meters for approximately 95% of consumers, with full deployment expected by the middle of 2026. The TOU tariff is scheduled to come into effect by the end of 2026. As part of the broader energy reforms, Jordan also plans to establish an automated energy control center by late 2026 to strengthen renewable energy monitoring and improve overall electricity grid management.
Financial Pressures Drive Sector Overhaul and Domestic Energy Development
The latest policy measures come as Jordan’s energy sector continues to face financial pressure resulting from disruptions to natural gas supplies from the Eastern Mediterranean following regional conflicts. The interruptions required NEPCO to purchase higher-cost fuel oil and liquefied natural gas from the spot market. Consequently, the company reported additional losses of JOD 87 million in March 2026, while total losses for the year are projected to reach around JOD 573 million.
To maintain uninterrupted electricity supply, the government authorized NEPCO to draw on strategic fuel reserves and temporarily lifted customs duties on imported energy products. Even amid these challenges, efforts to diversify the country’s energy mix helped lessen the impact of the supply disruptions. Renewable energy now accounts for around 27% of Jordan’s electricity generation, while oil shale contributes another 15%. At the same time, natural gas supplies have gradually begun to recover.
National Energy Strategy Supports Long-Term Energy Security
Complementing the energy reforms, the government has approved the National Energy Strategy for 2026–2035, which sets a target of achieving complete self-sufficiency in natural gas production. A key component of the strategy involves expanding the Risha gas field through the drilling of 80 new wells, together with the construction of a pipeline linking the field to the Arab Gas Pipeline by 2029. Once the project is completed, it is expected to produce sufficient natural gas to satisfy Jordan’s annual domestic demand.
Jordan also intends to accelerate renewable energy deployment through public-private partnerships. Planned developments include a 450 MW pumped-storage hydropower plant, a 200 MW solar power project, a 100 MW wind farm, and a 100 MW battery energy storage system. Collectively, these projects are expected to reduce peak electricity demand by 300 MWh over the next three years while enhancing grid stability and supporting the country’s long-term transition toward a cleaner and more sustainable energy system.
