Jordan, Saudi Arabia discuss ways to proceed with electricity interconnection

AMMAN — Jordan and Saudi Arabia on Tuesday discussed means to proceed with the electricity interconnection project, as part of efforts to enhance cooperation in the energy sector. 

The meeting, hosted by Jordan's National Electric Power Company (NEPCO), focused on accelerating key agreements needed to begin implementation, according to the Jordan News Agency, Petra.

Senior officials from both sides attended the meeting, including Secretary General of the Ministry of Energy and Mineral Resources Amani Azzam and NEPCO Director General Sofyan Bataineh. 

The Saudi delegation included senior representatives from the energy sector.

According to Bataineh, discussions focused on finalising three main agreements covering implementation, operations and commercial arrangements, which are expected to be signed before the end of 2025, while the project is expected to begin commercial operations by the end of 2029.

"This interconnection will enhance the reliability of both kingdoms' electricity grids," said Bataineh, adding that the venture would allow for the sharing of energy reserves and exchanges during peak periods, improving efficiency and stabilising the grid.

He added that the project is an important step towards a broader regional electricity market and better Arab energy integration, noting that grid interconnection is “increasingly” important in renewable energy systems, helping to reduce costs and optimise performance.

Highlighting Jordan's strategic goal of becoming a regional hub for energy exchange, Azzam said: "Our ongoing work on cross-border grid projects aims to boost Jordan's position in the regional electricity market".

The project stems from a memorandum of understanding signed in August 2020, which tasked NEPCO and the Saudi Electricity Company with drafting the technical and operational agreements, said Petra.

The project is part of the wider Arab Electricity Interconnection Initiative, which aims to create a unified electricity market. 

Jordan has recently hosted one of the initiative's key coordination meetings as momentum builds towards regional energy integration, according to Petra.