The CEO of the GCC Interconnection Authority, Ahmed Ali Al Ebrahim, recently announced a major loan agreement with the Kuwait Fund for Economic Development. This agreement, worth approximately 43 million BHD, will support a project aimed at strengthening the Gulf electrical interconnection system and establishing a connection to the southern Iraq network. The project is already 80% complete, with operations expected to begin by the end of 2024 and full readiness anticipated by 2026. One of the key components of this project is the construction of the Wafra station in Kuwait, which will significantly increase Kuwait’s capacity from 1,200 to over 3,500 megawatts.
In addition to the Wafra station, the project also includes the construction of new transmission lines from the Al-Fadhili Station in Saudi Arabia to the Wafra power plant in Kuwait. This initiative is expected to bring about significant economic and technical advantages for Gulf countries, potentially saving more than $300 million annually. These financing agreements mark the first collaboration between the Kuwait Fund and the Interconnection Authority during the network expansion phase. Plans are also in place for three major projects to improve connectivity with Kuwait, the United Arab Emirates, and the Sultanate of Oman, as well as a project to connect southern Iraq, with a total cost exceeding one billion dollars.
Al Ebrahim revealed that the Authority is working on expanding the electrical interconnection network with other member states. Several projects are currently under study and are expected to be implemented in the coming years. The ultimate goal is to enhance the economic benefits of electrical interconnection by utilizing additional transmission capacities to activate the common Gulf market for electricity. This initiative aims to facilitate the exchange and trade of electricity between GCC countries and beyond, presenting an economic opportunity worth more than $20 billion over the next 15 years. With these projects in place, the Gulf region is set to significantly enhance its energy infrastructure and pave the way for increased cooperation and economic growth in the future.
