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Jordan: Adoption of Renewable Energy Law

  • Jordan
  • Energy and infrastructure


Jordan: Adoption of the Renewable Energy and Energy Efficiency Law and the Resulting Direct Proposals


Increasing energy efficiency is a high priority of Jordan’s Government. Therefore, the recent the adoption of the Renewable Energy and Energy Efficiency Law (REEL) by Jordan’s Parliament in April 2012 is undeniably a step in the right direction, as it is anticipated that this will increase private-sector investment in renewable energy in Jordan.


The REEL was initially issued by the Government back in 2010.  This recent adoption shows further steps taken since.
Jordan’s Parliament has made a few changes to the adopted REEL since it was initially issued. For example, the REEL has created the Jordan Renewable Energy and Energy Efficiency Fund, one of the recent changes to the legislations relates to the structure of this fund.

Direct Proposals – Attracting Private Sector Interest

The REEL provides for a "Direct Proposal" option for developing renewable energy projects, where developers can submit their proposals directly to the Government.  This is seen as a major step forward in terms of increasing the security of energy supply, allowing the Government to work closer with developers with a view to increasing energy efficiency in Jordan.

Diverse Interest from Private Sector

When the REEL was first issued, the Government received overwhelming numbers of interests in developing projects.  Therefore, the Government adopted the request for expression of interest (REOI) approach in May 2011 in order to put some structure to the Direct Proposal option. In response to the REOI, 66 companies submitted an EOI.  Just recently (less than a month ago), the Government shortlisted 34 companies from the 66 that submitted an EOI.  The Government will now enter into memorandums of understanding with the shortlisted companies to allow them to conduct due diligence to be able to submit their proposals (which is expected to be 12-24 months from now).  The EOIs cover solar (PV and CSP) and wind.

Jordan has tremendous renewable energy potential which can only be realised by large-scale investments. The companies shortlisted after the recent EOIs include a good cross selection of funds, developers and equipment suppliers – showing that the interest in the growing renewable energy sector in Jordan is diverse, which displays great promise for obtaining the necessary investments.

About Eversheds

Eversheds has 45 offices in 28 jurisdictions across the UK, Europe, Middle East, Africa and Asia.  Our Middle East offices are based in:
Abu Dhabi, Dubai (the United Arab Emirates), Amman (Jordan), Baghdad (Iraq), Doha (Qatar) and Riyadh (Saudi Arabia).