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.