Muscat – February 13, 2025: Under the patronage of His Excellency Engineer Salim Al
Aufi, Minister of Energy and Minerals of the Sultanate of Oman, the Gulf Cooperation
Council Interconnection Authority (GCCIA) and the Qatar Development Fund (QDF)
formalized their partnership in a landmark financing agreement. This agreement
paves the way for a transformative direct grid connection project linking the GCCIA
network with the Sultanate of Oman. The auspicious signing ceremony was graced by
the presence of His Excellency Mohsin Al Hadhrami, Undersecretary of the Ministry
of Energy and Minerals and Chairman of the Board of Directors of the GCCIA, and His
Excellency Sheikh Mubarak bin Fahad Al Thani, Ambassador of the State of Qatar to
the Sultanate of Oman.
The agreement was duly executed by His Excellency Eng. Ahmed Ali Al-Ebrahim, CEO,
on behalf of the GCCIA, and by His Excellency Fahad Hamad Al Sulaiti, Director
General, on behalf of the Qatar Fund for Development, during a ceremony held today
in Muscat.
The project involves the construction of two 400 kV overhead transmission lines
connecting the GCCIA's Al Sila station in the United Arab Emirates to the Ibri station,
which the GCCIA will construct in the Sultanate of Oman. The total length of the lines
will be 530 kilometers. The project also includes the construction of two 400 kV
substations, one in Ibri and the other in Al Baynunah. These substations will be
equipped with advanced control, protection, and communication systems to ensure
reliability, efficiency, and safety. A dynamic compensator station will also be installed
to bolster grid stability and increase transmission capacity. This interconnection
project will provide a total transmission capacity of 1,700 MW, with a net transfer
capacity of 1,200 MW.
This project marks a pivotal stride toward the seamless integration of Gulf power
grids, a vital strategic initiative designed to fortify regional energy network
connectivity and bolster the reliability and sustainability of the region's electricity
systems. It resonates with global imperatives for energy infrastructure development
and the pursuit of sustainable development goals.
This project promises a wealth of advantages for both the Sultanate of Oman and the
GCC nations. By unlocking hundreds of megawatts of additional generation capacity,
it significantly reduces the imperative for costly new power plant construction.
Furthermore, it will streamline and amplify electricity exchange between the GCC
countries and Oman, fostering greater flexibility and resilience within regional power
systems. Operational costs will also see a marked decrease, as the interconnected
network reduces the operational expenditures of participating nations, leading to
substantial annual financial savings. Critically, this initiative will contribute
significantly to the reduction of carbon emissions, directly supporting global
environmental conservation efforts.
His Excellency Engineer Salim Al Aufi, Minister of Energy and Minerals, underscored
the strategic significance of this agreement, positioning it as a key element within the
framework of Gulf integration policies in the energy sector. He highlighted the
project's role in bolstering energy security and sustainability, noting its synergy with
GCC initiatives to develop a high-performing and dependable energy infrastructure.
His Excellency lauded the Gulf Cooperation Council Interconnection Authority
(GCCIA) as a driving force behind the implementation of collaborative
interconnection strategies. He stressed that this project will not only strengthen the
resilience of regional power grids but also pave the way for fully integrated energy
markets across the GCC. He further acknowledged the Qatar Development Fund's
contribution, highlighting the crucial role of such partnerships in funding vital energy
projects that are essential for sustainable development and a more resilient regional
electricity system.
His Excellency Mohsen bin Hamad Al Hadrami, Undersecretary of the Ministry of
Energy and Minerals and Chairman of the Board of Directors of the Gulf Cooperation
Council Interconnection Authority (GCCIA), affirmed that the electrical
interconnection project stands as a cornerstone among the vital infrastructure
initiatives endorsed by the leaders of the GCC states. Launched in 2009, the shared
Gulf network has seamlessly connected the electricity systems of the GCC nations. Its
core mission has been to ensure the uninterrupted flow of energy for GCC states,
achieving peak levels of reliability, dependability, and efficiency.
The GCCIA's interconnection network has proven its mettle, preventing over 2,800
electrical outages in member states through the instantaneous transmission of
required power across the interconnection network. Since the commencement of
operations, the network has been a bulwark against power disruptions.
His Excellency further stated that the GCCIA is committed to ensuring that the
electrical interconnection network keeps pace with the growing demands of power
grids across all GCC member states. To this end, the Authority has prioritized the
expansion and modernization of electrical linkages both within and between member
states, culminating in the implementation of several key network expansion projects,
including the direct connection with the Sultanate of Oman. These endeavors will
augment the capacity of the GCC-wide electrical interconnection network, thereby
bolstering the ability of member states to manage power contingencies.
Al Hadhrami further emphasized that this project constitutes a strategic step towards
the integration of Gulf energy networks. Moreover, it serves as a vital strategic
initiative aimed at strengthening the integration of regional energy networks,
enhancing the reliability and sustainability of electricity systems across the region,
and responding to global trends that advocate for the development of energy
infrastructure and the pursuit of sustainable development goals.
H.E Eng. Ahmed Al-Ebrahim, CEO of the GCCIA, highlighted the project's
transformative potential, noting that its construction is slated to begin in the second
half of 2025, with commissioning planned for the first half of 2027. He emphasized
that it will significantly bolster grid stability, reducing the disruptive effects of major
outages and ensuring uninterrupted power supply under various conditions. "This
project is not only about meeting current demands but also about preparing for the
future," he explained. "It will enable our networks to handle increasing loads and
support future expansion, while also seamlessly integrating renewable energy
sources like solar and wind power, aligning with the GCC's environmental vision.
Furthermore, it will significantly increase the volume of energy exchange and trade
among GCC nations, opening up opportunities for electricity trade, particularly for
the Sultanate, with the Republic of Iraq."
He further emphasized that this financing agreement solidifies the strong partnership
between the Authority and the Fund as they jointly pursue the expansion of the
electrical interconnection network, building upon the foundation laid by the South
Iraq connection project. Three landmark projects are in progress to forge stronger
links with Kuwait, the UAE, and Oman, representing a combined investment
exceeding one billion US dollars.
Al-Ebrahim celebrated the productive collaboration between the Authority and the
Fund, recognizing its pivotal role in financing essential infrastructure projects
throughout the GCC, thereby advancing the shared vision of sustainable
development.
Fahad Hamad Al Sulaiti, General Manager of the Qatar Development Fund,
highlighted the agreement as a testament to the Fund's commitment to driving
economic growth in Arab and developing countries through targeted financing and
loans for development initiatives. Rooted in a shared understanding of regional
cooperation's vital role, this initiative recognizes energy as a linchpin of stability and
socio-economic advancement.
This project embodies the Qatar Development Fund's enduring dedication to forging
regional partnerships and spearheading sustainable development efforts, paving the
way for a brighter future.
