Jordan Approves New Electricity Law Promoting Power Storage and Green Hydrogen Projects
Key Ideas
- Jordan has approved a new permanent electricity law that incentivizes investment in power storage and green hydrogen projects through public-private partnerships.
- The law allows electricity distributors to construct power storage stations for the first time and permits all investors to build, own, and operate power distribution and storage facilities.
- This legislation also paves the way for the establishment of an autonomous power distribution system and encourages investment in green hydrogen projects by enabling investors to set up independent power generation and distribution systems.
- Once the law is endorsed by the cabinet, it will create opportunities for economic development and advancements in the renewable energy sector in Jordan.
Jordan has passed a new electricity law that is set to revolutionize the country's energy sector. The law, scheduled to be enforced soon after cabinet approval, introduces several key provisions aimed at boosting investment in power storage and green hydrogen projects. Under this legislation, electricity distributors are now permitted to build power storage stations, a significant first for the country. Additionally, investors are granted the authority to establish and manage power distribution and storage facilities under a build, own, and operate (BOO) model. This move is expected to lead to the development of an independent power distribution system, enhancing the country's energy infrastructure. Noteworthy is the law's emphasis on promoting investment in green hydrogen projects, offering investors the flexibility to create their own power generation and distribution systems that are not reliant on the public electricity grid. The Minister of Energy and Mineral Resources highlighted the law's role in encouraging sustainable energy initiatives. Once operational, the law is poised to attract investments, drive economic growth, and foster innovation in the renewable energy sector in Jordan.