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Jordan seeks to strengthen its presence in the regional electricity market, taking advantage of its strategic geographic location and existing electrical interconnection networks with a number of neighboring countries, at a time when the regional need for energy exchange is increasing as a result of varying generation capacities and high demand in a number of countries in the region.

Experts in the energy sector believe that the Kingdom’s transformation into an actual regional center for electricity trade is still dependent on its ability to achieve low-cost surplus production, in addition to developing the necessary regulatory and commercial frameworks, and the availability of stable political and economic conditions that ensure the sustainability of cross-border electricity exchange operations.

Jordan and Egypt have been linked to an electrical interconnection network since 1999, while in February 2024 Jordan began supplying the Iraqi network with electricity through the interconnection project between the two countries that was launched on that date, in a step that represents the actual beginning of entering the Iraqi market as an importer of Jordanian electricity.

Jordan also supplies areas in Palestine through the Jerusalem Governorate Electricity Company network with about 80 megawatts, while in 2020 the National Electricity Company signed an agreement to increase the amounts of energy exported to the Palestinian side within a cooperation project that began in 2008, under which the Palestinian side purchases about 40 megawatts that are used to light the city of Jericho and the Jordan Valley region.

The Ministry of Energy and Mineral Resources had previously announced the Kingdom’s readiness to export electricity to Syria, in the event that the interconnection line with Damascus is ready and the necessary technical conditions for operation are available.

Low-cost surplus production is a basic condition

In this context, Dr. Duraid Mahasneh, Chairman of the Board of Directors of the Edama Association for Energy, Environment and Water, said that Jordan’s ability to export electricity to regional markets is primarily linked to the presence of a production surplus, which is not always achieved as a result of seasonal fluctuations in local demand, as consumption rises significantly during the summer compared to the rest of the year.

He explained that what is currently happening with some neighboring countries, led by Egypt, often depends on the principle of exchanging supplies according to mutual need, and not on fixed and continuous export, stressing that economically viable export requires the availability of low-cost electricity that enables Jordan to compete in neighboring markets.

Mahasneh pointed out that the slowdown in the expansion of large renewable energy projects in recent years has reduced the chances of possessing a low-cost surplus electricity that can be directed for export, pointing out that canceling bids for the third phase of renewable energy projects, which produced electricity at a cost of less than two piasters per kilowatt hour, deprived the Kingdom of an important opportunity to enhance its export capacity for clean electricity.

He stated that the opportunity still exists to expand Jordan’s role in the regional electricity market, including the possibility of supplying neighboring countries such as Syria with electricity, provided that the implementation of renewable energy projects is accelerated in the future, stressing that relying on imported gas or energy to re-export electricity achieves limited economic feasibility compared to producing low-cost local energy.

Jordan as a hub for electricity exchange

For his part, former Director General of the National Electricity Company, Dr. Ahmed Hiasat, said that Jordan’s geographical location gives it a real opportunity to be a regional center for a number of activities related to the energy sector, most notably electrical interconnection and energy exchange between neighboring countries.

He explained that Jordan began exchanging electricity with Egypt at the beginning of the millennium, and that stage witnessed large-scale exchange operations that achieved economic and technical benefits for the Kingdom, in addition to a limited exchange with Syria before it stopped as a result of the events witnessed there.

He pointed out that the connection was gradually restored with the start of supplying electricity to Syria, with the possibility of delivering energy to Lebanon through Syrian territory when the necessary political conditions and decisions are available.
Hiasat added that there are plans to raise the capacity of the electrical interconnection between Jordan and Egypt to about 1,000 megawatts, which opens a wider scope for energy exchange, especially in light of Egypt’s intention to interconnect with Saudi Arabia, in addition to the existing electrical interconnection project between Jordan and Saudi Arabia, in addition to the continued supply of electricity to the Jericho region for years.

He stressed that the benefits of interconnection are not limited to direct economic returns, but also include enhancing the stability of the electrical network in cases of emergencies or malfunctions, by benefiting from the networks of linked countries.

He indicated that Jordan has a surplus in some periods of the year, as despite the consumption of most of the installed capacity during peak summer demand, other periods witness a surplus that may sometimes reach about a thousand megawatts, which provides an opportunity to export electricity and achieve additional financial returns.

Electricity trading requires clear regulatory frameworks
In turn, energy affairs expert Dr. Firas Balasmeh said that the regional electrical interconnection issue is no longer just an infrastructure project, but rather has become part of a broader political and economic equation related to Jordan’s position in the regional energy map and its potential role in cross-border electricity trade.

He stressed that Jordan has good technical capabilities, but it has not yet decided its strategic choice to transform into a major regional player in electricity trade, explaining that this transformation requires a clear political decision that considers energy trade part of national economic security.

He pointed out the necessity of developing regulatory frameworks, investing in control and measurement systems, and building regional alliances that protect the electrical network from turning into a tool for political pressure, stressing that geographical location alone is not enough unless it is transformed into an organized electricity market governed by law, contracts, and political will.

Balasma explained that the connection with Egypt is considered the most stable and operational currently, and allows the exchange of hundreds of megawatts, with an official intention to increase the exchange capacity in the future, indicating that this connection is not limited to export or import, but rather plays an important role in balancing the electrical network, especially with the high contribution of renewable energy.

He explained that the connection with Iraq represents the largest potential export opportunity for Jordan in light of the large gap between Iraqi demand and generation capabilities, but this opportunity remains conditional on completing the technical stages of the connection, and providing financial and sovereign guarantees that reduce commercial and political risks.

As for the connection with Syria, it is still limited in operation as a result of the security situation and international sanctions, which makes any expansion of it a political decision more than a technical one.

He stressed that the real transformation lies in moving from bilateral exchange to organized regional electricity trade, based on clear rules that include pricing for network use, accurate measurement and settlement systems, binding legal contracts, and regulatory frameworks for resolving cross-border disputes.

Growth in Jordanian electricity exports: According to the latest data issued by the National Electricity Company, the company’s electricity exports during the past year amounted to 379.1 gigawatt hours, compared to 265.8 gigawatt hours in the previous year, an increase of 42.6%.

Exports included 227.3 gigawatt hours to the Jerusalem Electricity Company, compared to 168.1 gigawatt hours in the previous year, an increase of 35.2%.

The company also exported 144.1 gigawatt hours to the Iraqi network through the General Company for Energy Transmission in Iraq, compared to 90.2 gigawatt hours in the previous year, an increase of 59.2%, in addition to 7.8 gigawatt hours to the Iraqi border center (Trebil), compared to 7.2 gigawatt hours in the previous year.

Source: Al-Ghad newspaper – Reham Zidan

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