When the Arab Gas Pipeline was first disrupted by explosions in Egypt during the Arab Spring, Jordan had to suddenly switch to imported heavy fuel oil and diesel. The pipeline had provided most of the energy required for power generation in Jordan, and so the cost of power generation went up.
At first, the government made up the difference, to keep people from taking to the streets, as they had done in several countries in the region.
Meanwhile, refugees continued to pour into Jordan from Syria, in addition to those who arrived decades ago from Palestine. The government had to spread itself thinner over a wider number of social and economic concerns.
With the fuel subsidies adding up to almost a fifth of all government expenditures, and with no end in sight, the government decided to rethink its approach to the energy sector.
Part of Jordan’s solution has been to develop an innovative regulatory framework for the renewable energy sector. It’s already luring private sector investors.