Jordan signs multi-million euro loan with EBRD to support green energy

The Ministry of Planning and International Cooperation signed a USD 56.5 million loan agreement and a guarantee agreement with the European Bank for Reconstruction and Development (EBRD) to support the implementation of the North Substation and Transmission Lines Project—known as the North Green Substation.

The agreements were signed on behalf of EBRD by Gretchen Biery, Head of the EBRD Office in Amman and Regional Director for the Eastern Mediterranean.

Government officials expressed gratitude to EBRD for its support of this strategic project, which aligns with Jordan’s Economic Modernization Vision and its ambitious renewable energy goals for 2030.

The funding will be used to establish a new substation in northern Jordan to enhance the grid’s capacity for integrating existing and future renewable energy projects, strengthen the high-voltage transmission network, and improve operational flexibility for power generation units in the region.

Additionally, four new overhead transmission lines will be constructed, connecting the substation to existing facilities in Samra, West Amman, Al-Hassan Industrial Zone, and Jerash.

The project is expected to enhance energy security through local green energy sources, improve electricity flow within the national grid, and facilitate regional grid interconnections.

The European Union has also provided a USD 12.4 million investment grant and a USD 2.2 million technical assistance grant to support the project.

Officials emphasized the importance of the EU’s strategic partnership in fostering cooperation and advancing technical capacity building, particularly in training and equipping professionals in the energy sector with digital skills to meet market demands.

Gretchen Biery, EBRD’s Regional Director for the Eastern Mediterranean, stated, "We are proud to support NEPCO (National Electricity Power Company), in collaboration with the European Union, in developing Jordan’s electricity transmission infrastructure. This initiative will strengthen regional connectivity and accelerate Jordan’s green energy transition in line with the country’s economic modernization strategy."

Since 2012, EBRD’s cumulative investment portfolio in Jordan has reached nearly EUR 2.3 billion, supporting public and private sector projects across various industries, including renewable energy, pharmaceuticals, water, municipal infrastructure, solid waste management, transport, tourism, and banking.

The bank has also provided financial facilities to micro, small, and medium enterprises, with 55 percent of its funding allocated to the private sector, alongside technical assistance and advisory services in key sectors of cooperation between Jordan and EBRD.