Research article
● Open access
Challenges and Opportunities in Jordan’s Electricity Sector: A Comprehensive Review of Energy Security, Sustainability, and Future Pathways
Abstract
Jordan’s electricity sector faces major challenges due to its heavy reliance on imported fossil fuels, rising electricity demand, and infrastructure inefficiencies. Approximately 94% of the country’s energy needs are met through imports, making the sector vulnerable to geopolitical instability and price fluctuations. At the same time, population growth and economic development have increased electricity demand, highlighting the need for sustainable energy solutions.
This review analyzes the key challenges, infrastructure conditions, policy frameworks, and future opportunities in Jordan’s electricity sector. Data from national institutions such as the Ministry of Energy and Mineral Resources (MEMR), National Electric Power Company (NEPCO), and international sources were examined to assess consumption trends, system losses, renewable energy potential, and regional interconnection projects.
Electricity consumption in Jordan increased from 6.1 billion kWh in 2000 to 17.0 billion kWh in 2021. Natural gas currently accounts for about 80% of electricity generation, while renewable energy contributes around 20%. Solar photovoltaic capacity has reached 2,063 MW and wind power 370 MW. However, transmission and distribution losses remain significant, and electricity tariffs remain below actual system costs, creating financial pressures.
The study concludes that expanding renewable energy, modernizing grid infrastructure, improving policy implementation, and strengthening regional energy cooperation are essential for enhancing energy security and sustainability. Jordan’s strong solar and wind potential provides a promising pathway for reducing import dependence and achieving a more resilient electricity system.
Keywords
Jordan electricity sector; energy security; renewable energy; solar power; wind energy; energy policy; regional interconnection; electricity demand; energy losses; sustainable energy transition; power generation; energy imports
References
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Abu Qdais, H. (2019). Developing a decision support tool for managing sludge from wastewater treatment plants in Jordan. Desalination and Water Treatment, 139, 95-104. https://doi.org/10.5004/dwt.2019.23264
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Abu-Ashour, J., Abu Qdais, H., & Al-Widyan, M. (2010). Estimation of animal and olive solid wastes in Jordan and their potential as a supplementary energy source: An overview. Renewable and Sustainable Energy Reviews, 14(8), 2227-2231. https://doi.org/10.1016/j.rser.2010.03.001
Abu-Rumman, G., Khdair, A. I., & Khdair, S. I. (2020). Current status and future investment potential in renewable energy in Jordan: An overview. Heliyon, 6(2), e03346. https://doi.org/10.1016/j.heliyon.2020.e03346
Al-Hamamre, Z., Saidan, M., Hararah, M., Rawajfeh, K., Alkhasawneh, H., & Al-Shannag, M. (2017). Wastes and biomass materials as sustainable-renewable energy resources for Jordan. Renewable and Sustainable Energy Reviews, 67, 295-314. https://doi.org/10.1016/j.rser.2016.09.035
Al-Mulali, U., & Ozturk, I. (2015). The effect of energy consumption, urbanization, trade openness, industrial output, and the political stability on the environmental degradation in the MENA (Middle East and North African) region. Energy, 84, 382-389. https://doi.org/10.1016/j.energy.2015.03.004
Al-Soud, M., & Hrayshat, E. (2009). Feasibility of wind energy for electrification of rural Jordanian sites. Clean Technologies and Environmental Policy, 11(2), 171-176. https://doi.org/10.1007/s10098-008-0178-0
Azzuni, A., Aghahosseini, A., Ram, M., Bogdanov, D., Caldera, U., & Breyer, C. (2020). Energy security analysis for a 100% renewable energy transition in Jordan by 2050. Sustainability, 12(12), 4921. https://doi.org/10.3390/su12124921
Bani Younes, A. M. (2017). Renewable energy potential in Jordan. International Journal of Applied Engineering Research, 12(19), 8323-8331.
Baz, K., Cheng, J., Xu, D., Abbas, K., Ali, I., Ali, H., & Fang, C. (2021). Asymmetric impact of fossil fuel and renewable energy consumption on economic growth: A nonlinear technique. Energy, 226, 120357. https://doi.org/10.1016/j.energy.2021.120357
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El Hanandeh, A. (2014). The environmental performance of future power generation scenarios in Jordan. In Proceedings of the 7th Jordan International Chemical Engineering Conference (JICHE07). Amman, Jordan.
Electricity Regulatory Commission. (2015). Annual report 2015. Amman, Jordan: ERC.
Erős, N., Török, Z., Hossu, C. A., Réti, K. O., Malos, C., Kecskés, P., Morariu, S. D., Benedek, J., & Hartel, T. (2022). Assessing the sustainability related concepts of urban development plans in Eastern Europe: A case study of Romania. Sustainable Cities and Society, 85, 104070. https://doi.org/10.1016/j.scs.2022.104070
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GTZ. (2007). *Energy-policy framework conditions for electricity markets and renewable energies: 23 country analyses, Chapter Jordan*. Eschborn, Germany: Gesellschaft für Technische Zusammenarbeit.
Hrayshat, E. (2007). Analysis of renewable energy situation in Jordan. Renewable and Sustainable Energy Reviews, 11(8), 1873-1887. https://doi.org/10.1016/j.rser.2006.01.003
Hrayshat, E., & Al-Soud, M. S. (2004). Solar energy in Jordan: Current state and prospects. Renewable and Sustainable Energy Reviews, 8(2), 193-200. https://doi.org/10.1016/j.rser.2003.10.005
Jaber, J. O., Badran, O., & Abu-Shikhah, N. (2003). Sustainable energy and environmental impact: Role of renewables as clean and secure source of energy for the 21st century in Jordan. Clean Technologies and Environmental Policy, 6(3), 174-186. https://doi.org/10.1007/s10098-003-0232-x
Jaber, J. O., Marahleh, G., & Dalabeeh, A. (2019). Emissions reduction resulting from renewable energy projects in Jordan. Journal of Energy Technologies and Policy, 9(6), 1-12. https://doi.org/10.7176/JETP/9-6-01
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Kazim, A. (2007). Assessments of primary energy consumption and its environmental consequences in the United Arab Emirates. Renewable and Sustainable Energy Reviews, 11(3), 426-446. https://doi.org/10.1016/j.rser.2005.01.008
Khashman, A., Shukri, K., Al-Abbassi, Q., Aliwat, M., Al-Amleh, E., Taweel, S., Al-Momani, S., Haddadin, S., Baddar, L., & Awwadeh, Y. (2016). Energy in Jordan. Amman, Jordan: Friedrich-Ebert-Stiftung Jordan & Iraq.
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Loska, K., Wiechula, D., & Korus, I. (2004). Metal contamination of farming soils affected by industry. Environment International, 30(2), 159-165. https://doi.org/10.1016/S0160-4120(03)00157-0
Mason, M., Al-Muhtaseb, M., & Al-Widyan, M. (2009). The energy sector in Jordan: Current trends and the potential for renewable energy. In M. Mason & A. Mor (Eds.), Renewable energy in the Middle East: Enhancing security through regional cooperation (pp. 41-54). Springer.
Meaton, J., & Alnsour, J. (2012). Spatial and environmental planning challenges in Amman, Jordan. Planning Practice and Research, 27(3), 367-386. https://doi.org/10.1080/02697459.2012.673321
Ministry of Energy and Mineral Resources (MEMR). (2012). Renewable Energy and Energy Efficiency Law No. 13 of 2012. Amman, Jordan: MEMR.
Ministry of Energy and Mineral Resources (MEMR). (2015). *National Energy Strategy 2015-2025*. Amman, Jordan: MEMR.
Ministry of Energy and Mineral Resources (MEMR). (2017). Annual report 2017. Amman, Jordan: MEMR.
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Ministry of Energy and Mineral Resources (MEMR). (2019b). *Energy 2019 - Facts & figures*. Amman, Jordan: MEMR. https://www.memr.gov.jo/ebv4.0/root_storage/ar/eb_list_page/memr_annual_report_2019_-_15.5.2020.pdf
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Sabra, Z. J. (1999). Wind energy in Jordan - Use and perspectives. DEWI Magazine, 15, 45-50.
Sandri, S., Hussein, H., & Alshyab, N. (2020). Sustainability of the energy sector in Jordan: Challenges and opportunities. Sustainability, 12(24), 10465. https://doi.org/10.3390/su122410465
Shahbaz, M., Chaudhary, A., & Ozturk, I. (2017). Does urbanization cause increase energy demand in Pakistan? Empirical evidence from STIRPAT model. Energy, 122, 83-93. https://doi.org/10.1016/j.energy.2017.01.080
Shahbaz, M., & Lean, H. H. (2012). Does financial development increase energy consumption? The role of industrialization and urbanization in Tunisia. Energy Policy, 40, 473-479. https://doi.org/10.1016/j.enpol.2011.10.050
Shatnawi, N., Abu-Qdais, H., & Abu Qdais, F. (2021). Selecting renewable energy options: An application of multi-criteria decision making for Jordan. Sustainability: Science, Practice and Policy, 17(1), 210-220. https://doi.org/10.1080/15487733.2021.1930718
The Jordan Times. (2020, March 5). 93% of Jordan's electricity generated by natural gas. The Jordan Times. https://www.jordantimes.com/news/local/93-cent-jordans-electricity-generated-natural-gas
Trading Economics. (2021). Jordan energy imports. https://tradingeconomics.com/jordan/energy-imports
World Bank. (2020). World development indicators 2020. Washington, DC: World Bank.
Zhao, P., & Zhang, M. (2018). The impact of urbanization on energy consumption: A 30-year review in China. Urban Climate, 24, 940-953. https://doi.org/10.1016/j.uclim.2017.11.005
Abu Qdais, H. (2008). Environmental impacts of the mega desalination project: The Red-Dead Sea conveyor. Desalination, 220(1-3), 16-23. https://doi.org/10.1016/j.desal.2007.01.021
Abu Qdais, H. (2019). Developing a decision support tool for managing sludge from wastewater treatment plants in Jordan. Desalination and Water Treatment, 139, 95-104. https://doi.org/10.5004/dwt.2019.23264
Abu Qdais, H., & Alshraideh, H. (2016). Selection of management option for solid waste from olive oil industry using the analytical hierarchy process. Journal of Material Cycles and Waste Management, 18(1), 177-185. https://doi.org/10.1007/s10163-014-0320-3
Abu Qdais, H., Maqableh, A., Nawayseh, L., & Al Jamal, N. (2011). Energetic and methane emission reduction potentials from unsanitary solid waste landfill. Energy Sources, Part A: Recovery, Utilization, and Environmental Effects, 34(4), 360-369. https://doi.org/10.1080/15567030903503143
Abu-Ashour, J., Abu Qdais, H., & Al-Widyan, M. (2010). Estimation of animal and olive solid wastes in Jordan and their potential as a supplementary energy source: An overview. Renewable and Sustainable Energy Reviews, 14(8), 2227-2231. https://doi.org/10.1016/j.rser.2010.03.001
Abu-Rumman, G., Khdair, A. I., & Khdair, S. I. (2020). Current status and future investment potential in renewable energy in Jordan: An overview. Heliyon, 6(2), e03346. https://doi.org/10.1016/j.heliyon.2020.e03346
Al-Hamamre, Z., Saidan, M., Hararah, M., Rawajfeh, K., Alkhasawneh, H., & Al-Shannag, M. (2017). Wastes and biomass materials as sustainable-renewable energy resources for Jordan. Renewable and Sustainable Energy Reviews, 67, 295-314. https://doi.org/10.1016/j.rser.2016.09.035
Al-Mulali, U., & Ozturk, I. (2015). The effect of energy consumption, urbanization, trade openness, industrial output, and the political stability on the environmental degradation in the MENA (Middle East and North African) region. Energy, 84, 382-389. https://doi.org/10.1016/j.energy.2015.03.004
Al-Soud, M., & Hrayshat, E. (2009). Feasibility of wind energy for electrification of rural Jordanian sites. Clean Technologies and Environmental Policy, 11(2), 171-176. https://doi.org/10.1007/s10098-008-0178-0
Azzuni, A., Aghahosseini, A., Ram, M., Bogdanov, D., Caldera, U., & Breyer, C. (2020). Energy security analysis for a 100% renewable energy transition in Jordan by 2050. Sustainability, 12(12), 4921. https://doi.org/10.3390/su12124921
Bani Younes, A. M. (2017). Renewable energy potential in Jordan. International Journal of Applied Engineering Research, 12(19), 8323-8331.
Baz, K., Cheng, J., Xu, D., Abbas, K., Ali, I., Ali, H., & Fang, C. (2021). Asymmetric impact of fossil fuel and renewable energy consumption on economic growth: A nonlinear technique. Energy, 226, 120357. https://doi.org/10.1016/j.energy.2021.120357
EDAMA. (2019). Recommendations for the energy sector strategy. Amman, Jordan: EDAMA Association for Energy, Water and Environment.
El Hanandeh, A. (2014). The environmental performance of future power generation scenarios in Jordan. In Proceedings of the 7th Jordan International Chemical Engineering Conference (JICHE07). Amman, Jordan.
Electricity Regulatory Commission. (2015). Annual report 2015. Amman, Jordan: ERC.
Erős, N., Török, Z., Hossu, C. A., Réti, K. O., Malos, C., Kecskés, P., Morariu, S. D., Benedek, J., & Hartel, T. (2022). Assessing the sustainability related concepts of urban development plans in Eastern Europe: A case study of Romania. Sustainable Cities and Society, 85, 104070. https://doi.org/10.1016/j.scs.2022.104070
Fichter, T., Kern, J., & Trieb, F. (2013). The challenges of Jordan's electricity sector. German Aerospace Center (DLR). https://www.researchgate.net/publication/259897388
GTZ. (2007). *Energy-policy framework conditions for electricity markets and renewable energies: 23 country analyses, Chapter Jordan*. Eschborn, Germany: Gesellschaft für Technische Zusammenarbeit.
Hrayshat, E. (2007). Analysis of renewable energy situation in Jordan. Renewable and Sustainable Energy Reviews, 11(8), 1873-1887. https://doi.org/10.1016/j.rser.2006.01.003
Hrayshat, E., & Al-Soud, M. S. (2004). Solar energy in Jordan: Current state and prospects. Renewable and Sustainable Energy Reviews, 8(2), 193-200. https://doi.org/10.1016/j.rser.2003.10.005
Jaber, J. O., Badran, O., & Abu-Shikhah, N. (2003). Sustainable energy and environmental impact: Role of renewables as clean and secure source of energy for the 21st century in Jordan. Clean Technologies and Environmental Policy, 6(3), 174-186. https://doi.org/10.1007/s10098-003-0232-x
Jaber, J. O., Marahleh, G., & Dalabeeh, A. (2019). Emissions reduction resulting from renewable energy projects in Jordan. Journal of Energy Technologies and Policy, 9(6), 1-12. https://doi.org/10.7176/JETP/9-6-01
Jordan News. (2022, December 30). Jordan's fuel imports rose by 61% through October 2022. Jordan News. https://www.jordannews.jo/Section-113/All/Jordan-s-fuel-imports-rose-by-61-through-October-2022
Kazim, A. (2007). Assessments of primary energy consumption and its environmental consequences in the United Arab Emirates. Renewable and Sustainable Energy Reviews, 11(3), 426-446. https://doi.org/10.1016/j.rser.2005.01.008
Khashman, A., Shukri, K., Al-Abbassi, Q., Aliwat, M., Al-Amleh, E., Taweel, S., Al-Momani, S., Haddadin, S., Baddar, L., & Awwadeh, Y. (2016). Energy in Jordan. Amman, Jordan: Friedrich-Ebert-Stiftung Jordan & Iraq.
Leong Cheng, Y., Hee Lim, M., & Hoou Hui, K. (2022). Impact of internet of things paradigm towards energy consumption prediction: A systematic literature review. Sustainable Cities and Society, 78, 103633. https://doi.org/10.1016/j.scs.2021.103633
Loska, K., Wiechula, D., & Korus, I. (2004). Metal contamination of farming soils affected by industry. Environment International, 30(2), 159-165. https://doi.org/10.1016/S0160-4120(03)00157-0
Mason, M., Al-Muhtaseb, M., & Al-Widyan, M. (2009). The energy sector in Jordan: Current trends and the potential for renewable energy. In M. Mason & A. Mor (Eds.), Renewable energy in the Middle East: Enhancing security through regional cooperation (pp. 41-54). Springer.
Meaton, J., & Alnsour, J. (2012). Spatial and environmental planning challenges in Amman, Jordan. Planning Practice and Research, 27(3), 367-386. https://doi.org/10.1080/02697459.2012.673321
Ministry of Energy and Mineral Resources (MEMR). (2012). Renewable Energy and Energy Efficiency Law No. 13 of 2012. Amman, Jordan: MEMR.
Ministry of Energy and Mineral Resources (MEMR). (2015). *National Energy Strategy 2015-2025*. Amman, Jordan: MEMR.
Ministry of Energy and Mineral Resources (MEMR). (2017). Annual report 2017. Amman, Jordan: MEMR.
Ministry of Energy and Mineral Resources (MEMR). (2019a). Annual report 2019. Amman, Jordan: MEMR.
Ministry of Energy and Mineral Resources (MEMR). (2019b). *Energy 2019 - Facts & figures*. Amman, Jordan: MEMR. https://www.memr.gov.jo/ebv4.0/root_storage/ar/eb_list_page/memr_annual_report_2019_-_15.5.2020.pdf
Ministry of Energy and Mineral Resources (MEMR). (2021). Annual report 2021. Amman, Jordan: MEMR.
Nadejda, K., et al. (2017). Assessment of the Renewable Energy and Energy Efficiency Fund. Amman, Jordan: MEMR.
National Electric Power Company (NEPCO). (2015). NEPCO annual report 2015. Amman, Jordan: NEPCO. https://www.nepco.com.jo/en/annual_report_en.aspx
National Electric Power Company (NEPCO). (2019). NEPCO bulletin. Amman, Jordan: NEPCO. www.nepco.com.jo/images/bulletin/NEPCO_bulletin_en_2.jpg
Organisation for Economic Co-operation and Development (OECD). (2005). OECD investment policy reviews: Jordan 2005. Paris: OECD Publishing.
Ramachandra, T. V., Subramanian, D. K., & Joshi, N. V. (1997). Wind energy potential assessment in Uttara Kannada District of Karnataka, India. Renewable Energy, 10(4), 585-611. https://doi.org/10.1016/S0960-1481(96)00022-1
Sabra, Z. J. (1999). Wind energy in Jordan - Use and perspectives. DEWI Magazine, 15, 45-50.
Sandri, S., Hussein, H., & Alshyab, N. (2020). Sustainability of the energy sector in Jordan: Challenges and opportunities. Sustainability, 12(24), 10465. https://doi.org/10.3390/su122410465
Shahbaz, M., Chaudhary, A., & Ozturk, I. (2017). Does urbanization cause increase energy demand in Pakistan? Empirical evidence from STIRPAT model. Energy, 122, 83-93. https://doi.org/10.1016/j.energy.2017.01.080
Shahbaz, M., & Lean, H. H. (2012). Does financial development increase energy consumption? The role of industrialization and urbanization in Tunisia. Energy Policy, 40, 473-479. https://doi.org/10.1016/j.enpol.2011.10.050
Shatnawi, N., Abu-Qdais, H., & Abu Qdais, F. (2021). Selecting renewable energy options: An application of multi-criteria decision making for Jordan. Sustainability: Science, Practice and Policy, 17(1), 210-220. https://doi.org/10.1080/15487733.2021.1930718
The Jordan Times. (2020, March 5). 93% of Jordan's electricity generated by natural gas. The Jordan Times. https://www.jordantimes.com/news/local/93-cent-jordans-electricity-generated-natural-gas
Trading Economics. (2021). Jordan energy imports. https://tradingeconomics.com/jordan/energy-imports
World Bank. (2020). World development indicators 2020. Washington, DC: World Bank.
Zhao, P., & Zhang, M. (2018). The impact of urbanization on energy consumption: A 30-year review in China. Urban Climate, 24, 940-953. https://doi.org/10.1016/j.uclim.2017.11.005