How to Invest in Renewable Energy Projects in Jordan (2026): Permits, Ppas, Land, Incentives & Practical Steps

Last updated: 8 June 2026

Renewable energy investment in Jordan is entering its most consequential phase yet. On 19 April 2026 the Jordanian Cabinet advanced the draft amendments to the Investment Law, a reform package designed to expand incentive eligibility, streamline investment licensing and attract fresh capital to priority sectors including clean power generation. Simultaneously, Jordan has reaffirmed its target of reaching a 30 per cent renewable energy share by 2030, a commitment reported by the Petra News Agency on 29 April 2026 and anchored in the Ministry of Energy and Mineral Resources (MEMR) Energy Strategy 2020–2030.

For project sponsors, infrastructure funds and in‑house counsel, the practical question is no longer whether the Jordanian market is viable but how to navigate the permitting, land, power‑purchase‑agreement (PPA) and finance architecture efficiently. This guide provides a step‑by‑step developer playbook covering every stage from site selection to financial close.

Investor Decision Checklist, Go / No‑Go at a Glance

Before committing resources to detailed feasibility work, sponsors should run through the following regulatory pass/fail items. A “no” on any critical item signals a structuring issue that must be resolved before proceeding.

• Sector eligibility confirmed. Renewable energy generation is a promoted sector under the Investment Law and the Renewable Energy and Energy Efficiency Law (REEEL). Confirm your technology type (solar PV, wind, storage, green hydrogen) falls within the MEMR pipeline and current tender or direct‑proposal windows.
• Land pathway identified. Have you secured, or confirmed availability of, a site through private purchase, long‑term lease or public treasury land allocation via the Ministry of Investment (MOI)?
• EMRA licence route clear. Identify whether your project requires a bulk‑supply generation licence from the Energy and Minerals Regulatory Commission (EMRC/EMRA) and confirm the applicable capacity threshold and application documentation.
• PPA / off‑take mechanism selected. Competitive tender, direct proposal to MEMR, or wheeling arrangement, the procurement route determines your commercial terms and timeline.
• Environmental pathway scoped. Will the project require a full Environmental Impact Assessment (EIA) or a lighter Environmental and Social Due‑diligence Study (ESD)?
• Incentive application filed or planned. Under the 2026 Investment Law draft, expanded customs and tax exemptions are available, but must be applied for through MOI with supporting project documentation.
• Repatriation provisions documented. Confirm FX regime compliance and include repatriation clauses in shareholder and finance agreements.
• Dispute resolution clause drafted. International arbitration (commonly ICC or ICSID) should be stipulated in the PPA and project agreements.

Industry observers expect the typical timeline from site selection to final investment decision (FID) for a utility‑scale solar or wind project in Jordan to fall between 12 and 18 months, depending on grid‑connection complexity and land approvals.

Why Renewable Energy Investment in Jordan Matters Now, Policy and Market Update

Jordan’s renewable energy ambitions are shaped by a combination of energy security imperatives (the country imports approximately 90 per cent of its primary energy) and a rapidly maturing regulatory framework. Several recent milestones make 2026 a pivotal year for market entry.

Legislative and Policy Timeline

The IFC has highlighted growing private‑sector appetite for Jordanian renewables, noting that the country’s competitive tariff outcomes and established institutional framework have made it one of the more bankable markets in the MENA region. IRENA’s Renewables Readiness Assessment for Jordan identifies substantial untapped solar and wind resources, particularly in the southern and eastern governorates. These institutional endorsements underpin investor confidence and signal continued multilateral support for the sector.

The Invest Jordan platform, managed by the MOI, actively promotes the energy and water infrastructure sector and highlights opportunities in solar, wind and green hydrogen development, an important signal that government promotion machinery is aligned with policy targets.

Typical Project Types and Technical Overview

Utility‑Scale Solar Projects in Jordan

Jordan’s solar irradiance levels, among the highest globally, make the country exceptionally well‑suited for photovoltaic (PV) deployment. Utility‑scale solar projects in Jordan typically range from 20 MW to 200 MW and are concentrated in the Ma’an, Aqaba and eastern desert regions. Key permitting nuances for solar projects include land‑area requirements (approximately 1.5–2 hectares per MW for crystalline‑silicon PV), dust‑mitigation provisions in EPC contracts, and water‑supply arrangements for panel cleaning in arid zones.

Onshore Wind Projects in Jordan

Wind project development in Jordan focuses on the Tafila and Maan governorates, where consistent wind speeds support capacity factors competitive with European sites. Wind projects face additional permitting requirements around aviation clearance, noise‑impact assessments and community‑consultation obligations that solar installations typically do not trigger. Turbine‑import logistics (heavy‑lift road permits, port‑clearance at Aqaba) also require early planning.

Hybrid, Storage and Green Hydrogen

The emerging opportunity in hybrid solar‑plus‑storage configurations and green hydrogen production is attracting attention from European and Gulf‑based developers. The PtX Hub identifies Jordan as a priority country for Power‑to‑X development, and the Invest Jordan platform explicitly promotes hydrogen investment. While storage and hydrogen projects follow much of the same permitting pathway as conventional renewable generation, they introduce additional regulatory layers around fuel‑handling, export licensing and off‑taker structuring that are still evolving. Early engagement with MEMR is advisable for projects in this category.

Permits and Licences for Renewable Energy Projects, Step‑by‑Step Checklist and Timeline

Short answer: Building a solar or wind project in Jordan requires a construction permit, environmental approval (EIA or ESD), an EMRA generation licence, grid‑connection approval from NEPCO, and municipal permits. The process typically spans 6 to 12 months from complete application to construction‑readiness, though grid upgrades can extend that timeline.

Pre‑Development: Land, Feasibility and Resource Assessment

• Site identification and land rights. Secure site control through purchase, lease or public‑land allocation (see Land section below). Obtain a survey and title verification from the Department of Lands and Survey.
• Resource assessment. Commission a bankable solar‑irradiance or wind‑measurement study (minimum 12 months of on‑site data for wind; satellite‑validated data accepted for solar in most lender due‑diligence frameworks).
• Preliminary grid study. Request a preliminary grid‑connection study from NEPCO or the relevant distribution company early in the process, grid capacity constraints are the single most common source of delay.
• Zoning and land‑use confirmation. Confirm with the relevant municipality or governorate that the site is zoned for industrial or energy use, or obtain a zoning‑change approval if required.

Environmental Approvals

The Ministry of Environment oversees environmental permitting. Projects above certain capacity thresholds, generally large utility‑scale installations, require a full Environmental Impact Assessment (EIA), including public‑consultation elements. Smaller projects or those in designated development zones may qualify for a streamlined Environmental and Social Due‑diligence Study (ESD). Key steps include:

• Screening. Submit project description to the Ministry of Environment for screening and classification (EIA or ESD track).
• Scoping and Terms of Reference. For EIA‑track projects, agree on the scope of the assessment with the Ministry.
• Study preparation and submission. Engage an accredited environmental consultant; submit the completed study for review.
• Public consultation (EIA only). Facilitate stakeholder consultations as directed by the Ministry.
• Approval. Obtain the environmental clearance certificate before commencing construction.

Construction and Building Permits

Municipal construction permits are required for all physical works on site. Applications are filed with the relevant municipality or the relevant development‑zone authority (e.g., Aqaba Special Economic Zone Authority for projects in Aqaba). Documentation typically includes architectural and civil‑engineering drawings, proof of land rights, and the environmental clearance.

EMRA Licensing and Grid Connection

The Energy and Minerals Regulatory Commission (EMRC, commonly referred to as EMRA) issues generation licences for renewable‑energy installations. The EMRA licensing process for Jordan permits involves submitting a detailed application including the project’s technical specifications, financial‑capability evidence, environmental clearance and proof of land rights. Once the generation licence is granted, the developer must finalise a grid‑connection agreement with NEPCO (for transmission‑connected projects) or the relevant distribution company.

Red flag: Grid‑connection timelines are the most common bottleneck. If substation upgrades or new transmission infrastructure are required, lead times can add 6 to 18 months. Sponsors should request a binding grid‑connection offer with a defined timeline and include connection‑delay provisions in the PPA.

Land, Site Acquisition and Public Land Use, Purchase vs Lease

Securing land rights is a threshold issue for any renewable energy investment in Jordan. Foreign investor land ownership in Jordan is permissible but subject to conditions, and many developers choose leasehold or public‑land structures for practical and commercial reasons.

Foreign Investor Land Ownership Rules

Non‑Jordanian investors may acquire land, but ownership is subject to Cabinet approval in many cases and may be limited in certain strategic or border areas. The practical effect is that purchase transactions require longer lead times and greater regulatory engagement. For utility‑scale energy projects requiring large land parcels, outright purchase is often less efficient than leasing.

Leasing Public Treasury Land via MOI

The Ministry of Investment FAQ confirms that investment incentives may include the sale or lease of public treasury land to qualifying projects. For renewable energy developers, this is often the most streamlined pathway: MOI facilitates the allocation of government‑owned desert land at negotiated terms, typically on long‑term leases of 25 to 49 years aligned with PPA tenors. Application is made through MOI with supporting project documentation, feasibility study and evidence of financial capability.

Right‑of‑Way, Community Consents and Expropriation

Transmission‑line corridors and access roads may require right‑of‑way agreements with private landowners or municipalities. While expropriation powers exist under Jordanian law for public‑utility projects, they are rarely invoked for private IPPs. Investors should budget time for community‑engagement and land‑access negotiations, particularly for wind projects where turbine‑access roads cross multiple landholdings.

Land Acquisition, Comparison Table

Jordan PPAs, Grid Connection and Offtaker Risk, Commercial and Bankability Checklist

Short answer: The National Electric Power Company (NEPCO) is the primary off‑taker for utility‑scale renewable generation in Jordan. PPAs are procured through competitive tenders or direct proposals under the REEEL framework, and bankability depends on the strength of payment security, curtailment protections and change‑in‑law provisions.

PPA Procurement Routes

The REEEL, as analysed by UNESCWA, established the legal basis for private‑sector renewable electricity generation and sale. Procurement routes include:

• Competitive tenders. MEMR periodically issues requests for proposals (RFPs) for defined capacity blocks, typically specifying technology, location and maximum tariff. This route offers the clearest bankability pathway because tender documentation is standardised.
• Direct proposals. Developers may submit unsolicited proposals to MEMR for projects that align with the Energy Strategy. These require more negotiation and carry higher development risk but can access sites and configurations not covered by tenders.
• Wheeling / self‑supply. Corporate and industrial off‑takers can contract for renewable electricity through wheeling arrangements, using the grid to transport power from generator to consumer. The regulatory framework for wheeling is still maturing, and grid‑usage charges must be factored into commercial models.

NEPCO Obligations and Payment Security

For tender‑based projects, NEPCO enters into a long‑term Jordan PPA (typically 20 years) with the project company. Payment security mechanisms commonly include:

• Letters of credit (LCs) covering a defined number of months of receivables.
• Government support letters or guarantees providing sovereign backing for NEPCO’s payment obligations, essential for project‑finance bankability.
• Defined payment terms with interest on late payments and clear termination‑payment provisions.

Grid Code and Curtailment

Jordan’s grid code, administered by EMRA, sets technical requirements for generator connection, reactive‑power capability and fault‑ride‑through performance. Curtailment, the instruction to reduce output when the grid cannot absorb generation, is an increasingly important risk as renewable penetration grows. Investors should negotiate curtailment provisions in the PPA, including deemed‑energy compensation for curtailed output and caps on curtailment hours.

Bankability Clauses, Negotiation Checklist

Experienced lenders and sponsors active in the Jordanian market typically focus negotiations on the following PPA provisions:

• Change‑in‑law protection. Allocation of risk for regulatory changes that increase project costs or reduce revenue (tariff adjustments, tax changes, grid‑code amendments).
• Termination payments. Clear formulae for compensation on early termination by either party, including government‑default and force‑majeure termination scenarios.
• Currency and indexation. PPA tariff denomination (USD‑linked or JOD) and inflation‑indexation mechanisms.
• Step‑in rights for lenders. Express PPA provisions permitting senior lenders to step in and cure defaults before the off‑taker may terminate.
• Dispute resolution. International arbitration clause (see Dispute Resolution section below).

Red flag: Industry observers note that the single most common bankability concern for Jordan IPPs is the creditworthiness of NEPCO and the strength of the government support instrument. Lenders typically require either a sovereign guarantee or a robust government support letter before achieving financial close.

Investment Incentives Jordan, Tax, FX and Repatriation (How to Claim and Document)

Short answer: Qualifying renewable energy projects are eligible for customs and tax exemptions, potential discounts on public‑land leases, and expanded eligibility under the 2026 Investment Law draft. Applications are filed through MOI with project documentation.

Investment Incentives Under the Investment Law (2026 Draft)

The Investment Law draft advanced by Cabinet on 19 April 2026 is expected to expand the scope of investment incentives Jordan offers to priority sectors, including renewable energy. Based on the MOI FAQ and the Invest Jordan platform, incentives currently available or under expansion include:

• Customs exemptions on imported equipment, machinery and materials used in the project.
• Income‑tax reductions for projects located in designated development zones or governorates outside Amman.
• Land incentives, sale or lease of public treasury land at preferential terms.
• Streamlined investment licensing, the 2026 draft is expected to simplify and accelerate the registration and licensing process through MOI.

Customs, VAT and Corporate Tax Treatment

Imported renewable‑energy equipment (solar panels, inverters, wind turbines, transformers) may qualify for customs‑duty exemptions upon application to MOI and approval by the relevant inter‑ministerial committee. VAT treatment should be confirmed with the Income and Sales Tax Department, as certain project inputs may be zero‑rated or exempt under sector‑specific provisions. Corporate income tax is assessed at the standard rate unless a specific development‑zone or incentive‑regime reduction applies.

FX Regime and Repatriation of Profits

Jordan maintains a fixed exchange rate (JOD pegged to USD) and a relatively open FX regime. Repatriation of profits from Jordan is permitted, and the Investment Law expressly protects the right of foreign investors to transfer capital and returns abroad. Practical steps to ensure smooth repatriation include:

• Include express repatriation clauses in shareholder agreements, finance documents and the PPA.
• Register the foreign investment with MOI and the Central Bank of Jordan to establish a clear paper trail.
• Obtain tax clearance from the Income and Sales Tax Department before large capital transfers.
• Maintain audited financial statements in compliance with Jordanian accounting standards to support dividend declarations.

Step Checklist, Applying for MOI Incentives

1. Register the project company with MOI through the online investment‑licensing portal or in person.
2. Submit the incentive application with the project feasibility study, financial model and list of imported equipment.
3. Obtain MOI preliminary approval and referral to the inter‑ministerial incentives committee.
4. Receive the incentive decision (customs exemptions, land allocation and/or tax reductions) and formalise in the investment agreement.
5. Comply with reporting and milestone obligations specified in the investment agreement to maintain incentive eligibility.

Project Finance and Procurement, Structuring and Key Documents

Typical Project Structure

Renewable energy projects in Jordan are almost universally structured through a Jordanian‑registered special‑purpose vehicle (SPV) held by the sponsor(s). The SPV holds all project assets, contracts and permits. Equity contributions typically range from 20 to 30 per cent of total project cost, with senior debt provided by international development‑finance institutions (DFIs), commercial banks or a combination. Mezzanine and subordinated‑debt layers are less common but may feature in larger or more complex transactions.

Security Package

Lenders to Jordanian renewable projects typically require:

• Pledge over SPV shares, creating a first‑priority security interest over the project company equity.
• Assignment of PPA and project contracts, collateral assignment of revenue streams and key construction/O&M contracts.
• Step‑in rights, direct agreements with the off‑taker (NEPCO) and the EPC contractor permitting lender step‑in on SPV default.
• Account pledges, security over project bank accounts (revenue, reserve and debt‑service accounts).
• Mortgage over land, where the SPV owns the site freehold, or an assignment of leasehold interests where it does not.

Procurement Routes and Counsel Checklist

EPC procurement for solar and wind projects in Jordan generally follows either a full‑wrap turnkey EPC model (preferred by lenders for bankability) or a split‑contract approach (supply + installation) used by experienced sponsors seeking cost savings. Procurement counsel should confirm:

• Performance guarantees, energy‑yield guarantees, availability warranties and liquidated‑damages provisions calibrated to PPA revenue assumptions.
• Completion‑date certainty, delay LDs aligned with PPA commercial‑operation‑date requirements and grid‑connection milestones.
• Import and customs logistics, responsibility for customs clearance at Aqaba port and inland transport permits for heavy‑lift cargo (wind turbines).
• Local‑content obligations, confirm whether the tender or incentive framework requires a minimum proportion of locally sourced goods or services.

Red flag for lenders: Ensure the EPC contractor’s financial strength and track record are sufficient to support the performance‑guarantee and warranty package. Lender due diligence typically includes a contractor credit assessment and review of parent‑company guarantees.

Dispute Prevention and Resolution

Administrative Remedies

Disputes arising from permitting decisions, land‑allocation refusals or incentive‑eligibility determinations should first be pursued through administrative channels, formal objection to the issuing authority, followed by appeal to the relevant administrative court if necessary. Maintaining a complete documentary record of all applications, correspondence and decisions is essential for any subsequent challenge.

Arbitration Clauses and Sovereign Immunity

For PPA disputes and investment‑protection claims, international arbitration is the standard mechanism used by foreign investors in Jordan. Common choices include ICC arbitration (seated in Amman, Paris or London), ICSID arbitration under applicable bilateral investment treaties (BITs) and ad hoc arbitration under UNCITRAL rules. Jordan is a signatory to the New York Convention and the ICSID Convention, which facilitates enforcement of awards.

Sovereign‑immunity considerations apply when NEPCO or government entities are counterparties. PPA drafting should include an express waiver of sovereign immunity from jurisdiction and enforcement, and confirm that NEPCO is acting in a commercial (not sovereign) capacity.

Dispute Avoidance

Practical dispute‑avoidance measures include regular stakeholder meetings with MEMR and NEPCO, early engagement with EMRA on grid‑code compliance, and the use of expert‑determination clauses for technical disputes (e.g., curtailment calculations, deemed‑energy disputes) before escalation to formal arbitration.

Practical Timeline to FID, Sample 18‑Month Programme

Activities overlap significantly; the critical path typically runs through grid‑connection and PPA execution. Early engagement with NEPCO and MEMR is the single most effective way to compress the timeline.

Conclusion, Positioning for Renewable Energy Investment in Jordan

Jordan’s combination of exceptional solar and wind resources, a maturing regulatory framework and active government investment promotion makes it one of the more compelling markets for renewable energy investment in the MENA region. The 2026 Investment Law amendments, advancing through Cabinet as of 19 April 2026, signal further streamlining of the licensing and incentive architecture. Sponsors who move early, securing land, engaging MEMR on the PPA pathway and filing for MOI incentives, will be best positioned to capture opportunities in the pipeline leading to the country’s 2030 renewable‑energy targets. For project‑specific guidance on permitting, PPA negotiation and investment structuring, consult the Jordan practice area on Global Law Experts or browse the foreign investment lawyer directory for qualified advisers.

Sources

1. Ministry of Energy & Mineral Resources (MEMR), Jordan Energy Strategy & Projects
2. Invest Jordan, Sustainable Resources (Energy & Water)
3. Ministry of Investment (MOI), FAQ & Incentives
4. Petra News Agency, Jordan Targets 30% Renewable Energy Share by 2030
5. IFC, Powering Up Jordan’s Renewable Energy Market
6. IRENA, Jordan Renewables Readiness Assessment
7. UNESCWA, Policy Reforms to Promote Renewable Energy in Jordan
8. OECD, Clean Energy Investment Policy Review of Jordan
9. Jaradat Lawyers, Renewable Energy in Jordan: Legal Insights
10. PtX Hub, Jordan