Jordan Likely to Enact New Electricity Law to Boost Renewable Investment

The Jordanian government is on the verge of enacting a pivotal draft General Electricity Law in 2024. The legislation aims to grant more autonomy to operators in electricity generation, storage, and transmission, which is expected to attract significant investment in renewable energy including hydrogen. By increasing domestic renewable energy production, the law seeks to mitigate risks from external shocks and enhance the sustainability of Jordan's energy supply. Recently approved by the cabinet, the bill is anticipated to receive parliamentary approval and royal assent due to its importance for economic growth and energy security. The new law is set to replace an outdated temporary law from 2002, allowing companies more independence from the national grid. This change should catalyze Jordan's transition to generating 31.2% of its electricity from renewables by 2033, well above the regional average. While this enhances energy security, it will have limited immediate effects on reducing fiscal pressures owing to minimal government expenditure on electricity subsidies.