The European Bank for Reconstruction and Development (EBRD) and the European Union (EU) are enhancing Jordan’s power grid with a €67.1m ($70.1m) financing package.
The initiative aims to support Jordan’s energy sector through the National Electric Power Company (NEPCO), facilitating the country’s renewable energy targets for 2030.
Go deeper with GlobalData
The financing package includes a sovereign-guaranteed EBRD loan of $56.5m and an EU investment grant of $12.9m.
The funds will be used to construct a new high-voltage electricity substation in northern Jordan, improving the grid’s capacity to handle existing and new power generation.
EBRD head of the Eastern Mediterranean Gretchen Biery stated: “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 project also involves the construction of four new overhead transmission lines.
It involves two 400kV lines connecting to the existing Samra and Amman West substations, and two 132kV lines linking to the Hasan Industrial and Jerash substations.
The enhancement of Jordan’s transmission infrastructure is crucial for supporting the growing share of renewables.
NEPCO managing director Sufian Al-Bataineh stated: “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.”
The new substation will improve the grid’s ability to manage additional generation capacity, facilitate cross-border interconnections and reduce transmission losses by optimising power flows.
A comprehensive technical co-operation package will complement the finance, offering high-quality vocational training for people aspiring to work as electrical technicians.
This training will equip them with market-relevant digital skills and energy efficiency competencies.
An EU-funded technical cooperation grant of €2.2m will also be provided to appoint a project implementation consultant for NEPCO.
NEPCO, a state-owned public company, owns and operates Jordan’s transmission system and is the single buyer of electricity.
Since 2012, the EBRD has invested close to €2.3bn across 74 projects in Jordan, including more than €815m in the energy sector through 14 loans.
