Cabinet Approves the Energy Sector Strategy 2025–2035

3 May 2026 – The Council of Ministers approved today, Sunday, the Energy Sector Strategy 2025–2035 and adopted it as the national framework governing energy sector policies, programs, and projects across the Kingdom. The strategy aims to enhance government coordination and direct investments toward clearly defined priorities during the coming decade.

The strategy reflects a comprehensive national vision aimed at strengthening energy security and accelerating the transition toward clean and sustainable energy sources, thereby enhancing the competitiveness of the national economy and stimulating growth across productive sectors.

The new strategic direction focuses on maximizing the utilization of local resources while accelerating the adoption of advanced technologies to build a smart, resilient, and sustainable energy system. It promotes an integrated model that supports greater use of domestic natural gas and renewable energy sources, contributing to increased self-reliance and enhanced reliability of the Kingdom’s energy sector.

Strategic Targets Across Key Areas

First: Domestic Natural Gas as a Pillar of Strategic Transformation

Expanding the use of domestic natural gas represents a major component of the strategy. Key targeted projects include:

• Development of the Risha Gas Field, increasing production to meet growing demand, reaching 418 million cubic feet per day by 2029 and 812 million cubic feet per day by 2035.
• Construction of a strategic pipeline connecting the Risha Gas Field to the Arab Gas Pipeline, scheduled to become operational by 2029.
• Continued conversion of industrial facilities to natural gas, with demand projected to reach approximately 173 million cubic feet per day by 2035, alongside the implementation of gas distribution networks in Amman and Zarqa serving residential, industrial, and commercial sectors.

Second: Leadership in Renewable Energy and Green Hydrogen

The strategy identifies renewable energy as a cornerstone of the modern energy system and targets:

• Increasing the share of renewable energy sources to 40% of the electricity generation mix by 2035.
• Implementing new solar and wind power generation projects.
• Commencing commercial production of green hydrogen in 2030, reaching 500,000 tonnes annually by 2035.

Third: Energy Efficiency and Demand Management

The strategy aims to improve energy efficiency through:

• Achieving cumulative energy savings of 15% compared with the 2023 baseline year.
• Increasing the adoption of solar water heaters to 40% of households, 50% of hospitals, and 95% of hotels.

Fourth: Electricity System Development and Energy Storage Technologies

Key initiatives include:

• Expanding combined-cycle power generation projects during 2027–2030 to meet growing electricity demand.
• Introducing advanced storage technologies, including battery energy storage systems and pumped-storage projects.
• Gradually reducing electricity losses to 8% by 2035 and implementing time-of-use electricity tariffs across all sectors by September 2026 to reduce peak demand and improve system efficiency.

Fifth: Sustainable Transport

The transport sector will advance its transition toward clean energy through:

• Increasing electric vehicles to 60% of annual new vehicle sales, reaching approximately 500,000 vehicles in operation.
• Introducing the use of compressed natural gas (CNG), particularly for heavy-duty vehicles.