Developing Jordan’s Energy Sector: From Security of Supply to Flexible Governance and Comprehensive System Design
This paper was prepared in collaboration with Hussein Al-Sarayrah and Khalil Haddadin
Amid rapidly evolving geopolitical dynamics in the region, Jordan’s energy sector faces a complex challenge that extends beyond technical considerations to the core of economic and sovereign stability. This study demonstrates that the issue no longer lies in generation capacity or source diversification, but in the structure of the model itself, which struggles to balance cost, reliability, and autonomy.
The Jordanian case reflects what can be described as the “energy paradox”: an apparent surplus in generation capacity alongside deep structural dependence on external sources, rendering energy costs and stability vulnerable to regional and global fluctuations. In this context, energy shifts from a service sector to a strategic variable that shapes the state’s economic and political maneuverability.
The paper proposes a conceptual shift from a “security of supply” approach to a model of “flexible energy governance,” centered on reducing dependency, enhancing strategic maneuverability, and diversifying policy tools, rather than pursuing unrealistic full self-sufficiency. It also presents a practical roadmap structured across three time horizons, beginning with rapid, low-cost interventions and culminating in a comprehensive restructuring of the energy system.
The study concludes that the future of Jordan’s energy sector will be determined not only by resources or technology, but by the quality of governance and the capacity of institutions to make coherent strategic decisions—redefining the role of the state in this sector as a driver of stability and growth, rather than a burden on public finances.