Jordan’s lack of natural resources and high unemployment rate along with the aftermath of COVID-19 have all continued to pose challenges to the country’s sustainable economic development. One of the factors hindering the country’s competitiveness and economic growth is the high cost of energy for different economic sectors. The Government of Jordan has committed to reducing the costs of energy for businesses by working toward preserving macroeconomic stability, enhancing competitiveness, strengthening the conditions for more sustainable and inclusive economic growth, and reducing public debt.

USAID’s Energy Sector Support Activity, (ESSA) is a market-focused program that will support the Government of Jordan in implementing the Kingdom’s economic reform plans within its public institutions, with the goal to improve the energy sector’s sustainability and self-reliance. The activity will leverage the power of the private sector to catalyze Jordan’s power, gas, and petroleum industries toward a more resilient future, improve the financial stability of Jordan’s public institutions, and enable new investment to advance the energy sector’s sustainability.

One of the main Objectives of the ESSA program is the optimization of energy sector opportunities. This Objective is designed to enable flexible, pragmatic responses by ESSA to market needs and opportunities to support the achievement of Jordan’s long-term energy sector reform goals, including in the energy efficiency (EE) sector. One of the levers in supporting the achievement of Jordan’s long-term EE goals is the establishment of an approach for Energy Service Companies (ESCOs).

To understand the ESCO model in the region, several interviews and meetings were conducted with key stakeholders and market leaders in the region. This report illustrates the methodology and key takeaways that were noted during the process.