EBRD and Jordan join forces to enhance energy security and green transition

• EBRD signs framework with Jordanian ministries and NEPCO to support renewables, battery storage and grid modernisation
• Framework will strengthen the energy sector through reforms to improve NEPCO’s resilience and financial sustainability
• Agreement will advance Jordan’s low-carbon pathway and green hydrogen development

The European Bank for Reconstruction and Development (EBRD) has signed a memorandum of understanding (MoU) with Jordan’s Ministry of Planning and International Cooperation, Ministry of Energy and Mineral Resources, and its National Electric Power Company (NEPCO) to support the country’s green transition.

The MoU establishes a strategic framework for cooperation that is focused on strengthening energy security by expanding renewable capacity and battery energy storage systems (BESS), improving the national transmission system and enhancing NEPCO’s financial and operational resilience. The agreement will support the advancement of Jordan’s low-carbon pathway and the acceleration of green hydrogen development.

Under the agreement, the EBRD will support the preparation and implementation of tenders for renewables and BESS, help with targeted reforms to improve the financial sustainability of the electricity sector and assist with investments to modernise the transmission network. The Bank will also provide technical assistance to support Jordan’s ambition to position Aqaba as a regional green hydrogen hub, with the EBRD considering financing future green hydrogen projects.

The MoU supports Jordan’s target for 50 per cent of its energy to come from renewables by 2033.

The agreement was signed by the EBRD’s Vice President for Banking, Matteo Patrone, Jordan’s Minister of Planning and International Cooperation, Zeina Toukan, the country’s Minister of Energy and Mineral Resources, Saleh Al-Kharabsheh, and NEPCO’s Managing Director, Sufian Al-Bataineh.

Since 2012, the EBRD has invested more than €2.2 billion in Jordan through 84 projects, of which 73 per cent have been in the private sector. This has included financial support to the banking sector in the form of loans for micro, small and medium-sized enterprises, subordinated debt and trade finance facilities.