Jordan has a huge natural advantage. It gets excellent sunshine all year round and has powerful wind corridors. The country is also in a perfect location to sell clean energy to Europe and Asia. Jordan wants to build massive solar and wind plants, and it plans to create a major green hydrogen network by 2030. However, building these mega projects costs billions of dollars. Because these projects are so expensive to build upfront, the cost of borrowing money from banks is the biggest barrier holding them back. If interest rates and financing costs are too high, the clean energy produced becomes too expensive to sell. To fix this and make green energy cheap, Jordan needs to focus on smart planning, shared infrastructure, and better financial partnerships.
First, Jordan can lower costs by updating its laws and sharing public infrastructure. Building a single mega renewable energy plant requires a lot of extra expensive items like new power lines, land approvals, and water access. To help developers, the government updated its Investment Environment Law No. 21 of 2022 to offer tax cuts, custom exemptions, and faster licensing. Even more importantly, Jordan recently enacted the landmark General Electricity Law of 2025 alongside Gas Law No. 16 of 2026. Together, these modern regulations provide a stable legal framework by officially defining green hydrogen, allowing private operators to manage energy storage, and regulating shared gas pipelines under the Energy and Minerals Regulatory Commission (EMRC). This protective structure enables a “shared hub” model in active areas like Aqaba. Instead of every company building its own expensive infrastructure, the government can safely regulate large, shared systems. This turns a crushing upfront construction cost into a predictable monthly fee, reducing risk so international banks offer lower interest rates.
Second, we need to change how these projects are funded by using climate finance and a mix of public and private money. Regular commercial banks usually think large infrastructure projects in developing regions are too risky. They demand high interest rates and want developers to put up too much of their own cash. To solve this, Jordan can tap into specialized climate finance channels through Development Finance Institutions like the World Bank or the European Bank for Reconstruction and Development (EBRD). The EBRD recently signed a framework agreement with Jordan’s Ministry of Energy to fund grid modernizations. These dedicated climate finance institutions provide low interest “soft” loans or take on early project risks if construction struggles. Furthermore, by securing equipment backed by international government guarantees, projects can protect commercial banks from technology failures without adding to Jordan’s national debt.
This new way of funding is already turning massive projects from ideas into reality with large investment numbers. For example, the Jordan Green Ammonia project is a $1.1 billion investment with a Polish-Emirati consortium to build a facility near Aqaba powered by a dedicated 550-megawatt solar array. Similarly, Jordan signed a land agreement with China’s United Energy Group for a massive $1.15 billion green hydrogen and ammonia export project. Another major initiative utilizing international climate finance and green funding structures is the upcoming $4 billion National Conveyor water desalination and pipeline system in Aqaba. Alongside these, the ministry is rolling out tenders for a new 200-megawatt solar facility, a 100-megawatt wind farm, and large 500-megawatt battery storage systems to keep the power grid stable.
Finally, a mega project cannot get off the ground without guaranteed buyers. Banks will not release climate finance or commercial loans unless they are certain someone will buy the energy for the next twenty years. Jordan can secure this by balancing two markets. At home, national electrical companies like NEPCO and local factories can buy a steady baseline of energy, providing a safe and reliable income. Abroad, Jordan can export green energy to European markets where buyers are willing to pay a premium price to avoid carbon taxes. By combining safe local sales with highly profitable exports, developers can show lenders a very stable financial plan.
Jordan’s clean energy success will not come from inventing better solar panels, but from making these projects cheaper to finance through shared infrastructure, modern regulations like the 2025 General Electricity Law and 2026 Gas Law, and strategic climate finance partnerships.
