Jordan proposes a new pricing formula for electricity exported to Iraq
Amman2 min read
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The National Electric Power Company (NEPCO) revealed that Jordan has presented a new pricing formula for selling electricity to Iraq, based on the actual costs of the exported electricity, noting that discussions between the two sides are still ongoing to determine sale prices, contractual quantities, and contract terms.
The company explained that previous meetings between the two sides addressed the prices for selling electrical energy to Iraq at 400 kV, within the framework of discussions related to determining prices, contractual quantities, and terms of sale.
Regarding the expansion of electrical interconnection between the two countries, the company stated that both sides aspire to achieve synchronous electrical interconnection at 400 kV, which requires the construction of new reinforcements in the Jordanian and Iraqi electrical transmission networks to increase energy exchange capacities.
It added that achieving this would raise the electrical exchange capacities between the two countries to about 1000 MW, compared to the currently possible exchange capacity of 150–200 MW.
This comes within the framework of the electrical interconnection project between Jordan and Iraq, which aims to enhance cooperation in the energy sector and facilitate the exchange of electricity between the two countries.
On March 30, 2024, Jordan began supplying the Iraqi Rutba region with electricity via the national grid, as part of the first phase of the project, with a capacity of about 40 MW at 132 kV, according to data from the Ministry of Energy and Mineral Resources.
In August 2025, the National Electric Power Company announced the extension of the agreement to supply the Iraqi Rutba region with electricity, at the request of the Iraqi side, until the completion of the electrical interconnection works at 400 kV.
The supply of electricity from the Jordanian grid to the Rutba region in western Iraq was halted in September 2026, following the expiration of the supply contract.
