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 €67.1 million ( US$70.32 million ) of financing to the country’s National Electric Power Company ( Nepco ).

The financing package consists of a sovereign-guaranteed EBRD loan of up to US$56.5 million plus an EU investment grant of €12.4 million.

State-owned Nepco is the owner and operator of Jordan’s transmission system, as well as the single buyer of electricity.

The funds will finance the construction of a new high-voltage electricity substation in northern Jordan 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-kilovolt lines providing connections to the existing Samra and Amman West substations, and two 132kV 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 optimizing 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 competencies.

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.

“We welcome the support of the EBRD and the EU in enhancing transmission infrastructure, in line with Jordan’s economic modernization vision to build a more resilient and sustainable power sector," says Nepco managing director Sufian Al-Bataineh. "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.”

Since the start of its operations in Jordan in 2012, the EBRD has provided almost  €2.3 billion across 74 projects, including more than €815 million in the energy sector, through 14 loans.