$220m deal to connect GCC power grids with Iraq

MUSCAT, JUNE 10

The Gulf Electrical Interconnection Authority (GCCIA) has successfully entered into a $220 million contract with five prominent companies to construct a 295-km, 400-kV transmission line that will serve as a vital link connecting the electrical grids of the Gulf states with Iraq. Anticipated to be completed within a span of 24 months, the project will offer an initial capacity of 500 megawatts.

The undertaking of this project aligns with the GCCIA's overarching objective of enhancing the reliability and security of electricity supply within the region. Moreover, it presents a remarkable opportunity to foster energy trade between the Gulf states and Iraq.

Financial backing for this initiative is being provided by the Kuwait Fund for Arab Economic Development and the Qatar Fund for Development.

The formal signing of this contract represents a noteworthy milestone in the ongoing endeavours of the GCCIA to establish a robust connection between the electrical grids of the Gulf states and Iraq. This project is poised to play a pivotal role in fortifying energy cooperation between these two regions.

Commenting on the agreement, Eng Yaqoub al Kiyumi, Vice Chairman of the GCCIA's Board of Directors (who is also CEO of Nama Power & Water Procurement of the Sultanate of Oman), said: "This project constitutes a significant milestone for both the GCCIA and the broader region. It represents our first foray into interconnecting electrical grids beyond the GCC system, thereby paving the way for potential future connections with other nations. The project will facilitate cooperation in electricity provision, bolster network reliability for all involved parties, and establish the Wafra substation as a strategic focal point for strengthening connectivity with Kuwait and serving as an initial junction for connecting with Iraq. The GCCIA remains committed to advancing electrical network technologies, exploring avenues for integrating renewable energy solutions, and has ambitious plans for expansion projects, including linking with Kuwait, expanding connections with the UAE, and establishing a direct link with the Sultanate of Oman in the near future.”