Jordan's NEPCO Struggles with Rising Fuel Costs

The National Electric Power Company (NEPCO) in Jordan is facing financial losses due to rising global fuel costs, which directly affect electricity generation costs.

Natural gas accounts for the largest share of energy used for power generation and its prices are partly linked to Brent crude under long-term supply contracts.

The company's average generation costs are also affected by the extent of reliance on liquefied natural gas, diesel, and heavy fuel oil, as well as the contribution of other energy sources to electricity generation.

In 2025, natural gas accounted for 63% of generated electricity, compared with 56% during the first eight months of 2026. The share of renewable energy increased from 18% to 21%, while oil shale's share fell from 17% to 16%.