Attacks on the Arab Gas Pipeline in the Sinai led to disruptions in the supply of natural gas from Egypt to Jordan, which contributed to losses by the electricity sector of over JOD 1 billion last year; such losses are expected to reach JOD 1.5 billion this year if the situation continues. The Government of Jordan is therefore planning to raise electricity tariffs during May 2012.  

Amid this energy crisis, focus on renewable energy projects became paramount. As such, the Ministry of Energy and Mineral Resources (the “Ministry of Energy”) announced on 25 April 2012 that it has qualified 34 international and local companies for the investment in renewable energy projects, with an overall capacity reaching 1000 MWs. Of the qualified companies, 22 companies will invest in solar power projects and the other 12 companies are specialised in wind energy.