The energy sector plays a vital role in the development and maintenance of every other sector in the country. It is essential in improving standards of living and fundamental to the establishment of sustainable development. Unfortunately, Jordan lacks conventional energy resources and imports the vast majority of its supply of energy.

The rapid increase in population size and economic growth has also created a higher demand for energy making it difficult for the Kingdom to satisfy its needs.

Jordan has a small to medium sized economy. It annually receives financial aid from abroad and has a number of foreign loans. Unlike its neighbouring countries, it has little to no reserves of oil, limited natural resources and relies mainly on imports to keep its citizens' needs met.