Amman – As geopolitical risks intensify and pressure on global energy markets grows, regional electricity interconnection is returning to the forefront of Jordan’s strategic options. It offers a means of diversifying electricity supplies, strengthening the resilience of the power system, reducing the risks associated with reliance on limited supply routes, and opening new opportunities to export surplus domestic generation.
Experts in the energy and economic sectors say the importance of electricity interconnection is not diminishing with the expansion of renewable energy projects and electricity storage systems. Rather, it is growing as countries seek to build integrated systems that combine diversified generation sources, surplus storage, cross-border electricity exchanges, and the ability to benefit from differences in consumption patterns and peak-demand periods between countries.
According to the experts, Jordan’s ambitions extend beyond securing its electricity needs. They also involve leveraging the Kingdom’s geographic position to become a regional link between energy markets in the Eastern Mediterranean and the Gulf, creating broader economic and investment opportunities, provided that projects are financially viable, agreements remain stable, and interconnected grids are technically ready.
Renewable Energy: A Shield Against Market Volatility
Dr. Duraid Mahasneh, Chairman of the Board of the Jordanian Energy, Water and Environment Partnership Association (EDAMA), said expanding renewable energy projects strengthens Jordan’s energy security because they rely on locally available natural resources and reduce the need to import fuel, along with the price volatility and supply disruption risks associated with regional developments.
Mahasneh said higher oil and gas prices or disruptions to their supply have a direct impact on energy costs, while greater reliance on renewable sources reduces the Kingdom’s exposure to such fluctuations and strengthens its ability to meet its needs using domestic resources.
He explained that connecting renewable energy projects to the electricity grids of neighboring countries does not hinder their expansion. Instead, it can create additional opportunities for electricity exchanges and better use of domestic generation through interconnection with countries such as Syria and others, strengthening regional energy integration.
He noted that this approach forms part of a broader concept of resource security that extends beyond energy to include water, by reducing reliance on resources outside national control and strengthening Jordan’s ability to secure its needs sustainably.
Storage Does Not Eliminate the Economic Advantage of Clean Energy
Regarding the impact of electricity storage systems on the investment viability of renewable energy projects, Mahasneh said adding storage systems does not eliminate their economic advantages.
He explained that generation costs remain a key component of the investment equation for both conventional and renewable energy projects, while transmission and storage costs depend on the systems used and their technical requirements.
He also stressed that renewable energy has lower environmental impacts than conventional energy sources, which are associated with emissions that contribute to climate change and may affect weather patterns and rainfall. This further highlights the importance of expanding clean energy sources from both energy and water security perspectives.
Jordan: From Consumer Market to Electricity Exchange Hub
Energy expert Hashim Aql said electricity interconnection remains a viable and vital option for Jordan, with rapidly evolving geopolitical developments making it even more important.
Given the Kingdom’s limited major domestic resources of conventional energy, diversifying supply sources and routes represents a strategic line of defense against dependence on a single source.
Aql said Jordan is seeking to strengthen its position as a key link connecting energy grids in the Eastern Mediterranean and the Gulf, building on existing interconnection projects with Egypt, Palestine and Iraq, as well as planned projects with Saudi Arabia and Gulf Cooperation Council countries.
He said the importance of this role goes beyond direct economic returns, extending to strengthening Jordan’s strategic weight in the region and turning its geographic position into an asset that can be used in electricity trade and the exchange of benefits between interconnected markets.
Interconnection projects can also help reduce the capital and operating costs of the electricity system by limiting the need to build large domestic reserve generation plants. Neighboring countries’ grids can instead be used to address emergency shortages or sudden increases in peak demand, strengthening the resilience of the national system.
Stable Agreements and Surplus Generation: Conditions for Success
Aql said realizing the economic and technical benefits of electricity interconnection requires clear and stable bilateral and regional agreements defining energy-exchange obligations and transparent pricing mechanisms, in addition to genuine surplus generation and adequate generation capacity in interconnected countries.
He highlighted the importance of taking advantage of differences in peak-demand periods and consumption hours between countries, whether between summer and winter or between day and night. This would enable more efficient electricity exchanges and better use of each side’s available capacity.
He also stressed the need for technical and institutional coordination among national transmission system operators, particularly Jordan’s National Electric Power Company and its counterparts in other countries. Such coordination is essential to ensure compatible technical standards and joint operating conditions, maintain frequency stability and reduce the risks of disruptions or collapses in interconnected grids.
Batteries and Interconnection Lines: Complementary, Not Competing
Regarding the relationship between renewable energy, batteries and interconnection lines, Aql said the major expansion of solar and wind projects in Jordan has created challenges related to fluctuations in generation.
This increases the importance of regional interconnection in absorbing surplus electricity during periods of high generation or exporting it to neighboring markets, while allowing imported electricity to be used when renewable generation falls.
Aql stressed that batteries cannot fully replace electricity interconnection because they store electricity generated locally and cannot, on their own, compensate for several consecutive days of low renewable generation caused by weather conditions or prolonged periods without sufficient sunlight or wind.
He added that storing huge quantities of electricity for extended periods using batteries alone remains costly compared with the possibilities offered by importing or exchanging electricity through extensive interconnected grids.
The challenge, therefore, is not choosing between batteries and interconnection lines, but determining the most economically and technically appropriate role for each, balancing investment costs, supply reliability and grid stability.
Electricity Interconnection: Regional “Insurance” Against Risks
Financial and economic expert Dr. Mohammad Al-Hadab Al-Sarhan said geopolitical developments do not reduce the strategic value of regional electricity interconnection for Jordan. Instead, they make diversifying energy sources and supply routes more important.
However, he said projects should be subjected to independent economic studies that take into account their costs, expected exchange volumes, electricity price differentials, the stability of interconnected countries and the ability of grids to continue operating under exceptional circumstances.
Al-Sarhan said electricity interconnection should not be viewed simply as an infrastructure project, but rather as a form of “regional insurance” for the power system. It enables Jordan to import electricity when needed and export it when surplus is available, while benefiting from differences in peak-demand periods between countries.
He said Jordan already has a foundation on which to build through its electricity links with Egypt and Iraq. These connections expand the options available to the national power system, reduce reliance on a single market or source, and allow the Kingdom to turn its geographic position into an economic advantage through regional electricity trade rather than focusing solely on meeting domestic demand.
Al-Sarhan added that batteries and storage systems are not an absolute alternative to electricity interconnection, but rather a complementary tool. Local storage may be less costly in some cases than constructing a new interconnection line, particularly when the objective is to address short-term imbalances lasting several hours or reduce pressure during peak periods within the grid.
He stressed that Jordan’s choice should not be between interconnection, storage and renewable energy. Instead, it should build an integrated system combining all three by increasing renewable electricity generation, using storage to address short-term fluctuations, and employing regional interconnection to exchange surpluses, share reserves and open export markets.
He also called for interconnection agreements to be designed to ensure operational flexibility and limit excessive reliance on a single route, while diversifying the countries connected to the grid and establishing clear rules for electricity pricing, exchanges and emergency situations amid continuing geopolitical changes.
Jordan’s Interconnection Network: Existing Capacity and Planned Expansion
Jordan’s electricity interconnection projects include existing lines and others under development, as part of the Kingdom’s efforts to strengthen energy supply security and diversify import and export options.
The interconnection with Egypt, operational since 1999, has a capacity of around 550 megawatts. The planned interconnection with Saudi Arabia targets 500 megawatts in its first phase, rising to 1,000 megawatts in the second phase.
The interconnection project with Iraq aims to supply between 150 and 200 megawatts through a 400-kilovolt line, while work is underway to strengthen interconnection with Syria and Lebanon through grid assessments and completion of rehabilitation and financing requirements.
Jordan also supplies the Jerusalem District Electricity Company with electricity through its interconnection with Palestine, with an announced capacity of 80 megawatts.
These projects reflect a move toward expanding Jordan’s regional electricity network, providing the Kingdom with broader options for managing demand and meeting needs during peak periods, making use of surplus domestic generation, and strengthening opportunities for cross-border electricity trade.
