Platform to link Gulf and Iraqi electricity markets inaugurated

MUSCAT, OCT 10

In a momentous stride towards regional energy cooperation, Prince Saud Bin Nayef bin Abdulaziz, Governor of the Eastern Province in the Kingdom of Saudi Arabia, inaugurated on Tuesday the platform for the project aimed at linking the Gulf Electricity Market with the Republic of Iraq at the Gulf Cooperation Council Interconnection Authority (GCCIA) headquarters in Dammam, Saudi Arabia.

An ambitious scheme endorsed by GCC leaders, the Gulf Electricity Interconnection Project stretches over 1,000 kilometres from Kuwait to Oman. Its launch marked a significant milestone, and since its inception, it has supported over 2,700 emergency cases, ensuring continuous power supply during peak demand periods and emergencies.

Eng Ahmed al Ebrahim, Chief Executive Officer of GCCIA, said the new platform opens up opportunities for the Gulf market to trade and exchange electricity between the Gulf Cooperation Council (GCC) countries and the Republic of Iraq. He emphasized that the platform enables GCC countries to enter into bilateral or multilateral agreements, as well as reserve the necessary transmission lines for electricity transfer among GCC countries.

Al Ebrahim affirmed that the new electricity market system contributes to enhancing efficiency to maximise the use of the electrical link for the GCC countries. Furthermore, it offers flexibility in usage for market participants, traders, and associated parties. He pointed out that the new system is characterised by its scalability to new market areas without critically affecting auction systems and business processes.

Meanwhile, the newly inaugurated platform will further foster this initiative by facilitating bilateral and multilateral agreements between the Gulf countries and Iraq. Eng Yaqoob Saif al Kiyumi, the Vice-Chairman of GCCIA, underlined the transformative potential of the platform, noting that it will "foster electricity trade between GCC countries and Iraq, and act as a catalyst for regional energy cooperation and integration.

Al Kiyumi expressed his gratitude to the GCC leaders for their unwavering support, attributing the success of the project to their vision and commitment to regional integration and sustainability. "We continue to fulfill our strategic role in ensuring energy continuity for GCC countries by swiftly addressing any emergency energy needs," he stated.

The Gulf Electricity Interconnection Project has been a resounding success, contributing economic and technical benefits to the GCC countries and saving approximately $3 billion compared to initial investment and operational costs. "Energy security and sustainability are paramount. This project supports both and ensures the reliability of energy supply in GCC countries," Al Kiyumi added.

The newly inaugurated platform is set to take this initiative a step further by facilitating bilateral and multilateral agreements between the Gulf countries and Iraq. This development is expected to promote a more efficient utilisation of power resources, reduce the cost of electricity, and enhance the security of power supply in the region.