MUSCAT, MAY 21
Kuwait’s Ministry of Electricity, Water and Renewable Energy has announced the signing of an agreement with the Gulf Cooperation Council Interconnection Authority (GCCIA) to import electrical energy from the Gulf Electricity Market – a move that will ensure power exports from the Oman network as well.
The agreement aims to streamline the importation of electrical energy from the Gulf market to Kuwait, ensuring the provision of required quantities at competitive rates, as per the Gulf market prices. This initiative will see Kuwait being supplied with the contracted electrical energy via the Gulf electrical interconnection network, utilizing the Gulf electrical energy trade platform managed by the GCCIA.
In a statement, Eng Ahmed al Ibrahim, CEO of the GCCIA, emphasized the significance of the Gulf electrical market, describing it as one of the most efficient in the region. He highlighted that the GCC market coordinates through an electronic platform that allows member countries to submit competitive bids in terms of quantities and prices. Deals are concluded via this platform, which also oversees energy scheduling and financial settlements.
Al-Ibrahim underscored that the primary goal of trading electrical energy is to foster societal growth by providing sustainable and competitively priced electrical energy. This trade mechanism also reduces the high costs associated with producing electrical energy and constructing new power stations. By importing or exporting electrical energy, system operators can significantly cut costs and enhance operational efficiency, benefiting member countries in terms of operational safety and effectiveness.
He noted the global importance of electrical energy trading, particularly in light of the rising integration of renewable energy sources. This trend necessitates short-term trading to mitigate the fluctuations inherent in renewable energy systems. Al-Ibrahim pointed to the European experience as a benchmark, where all European nations engage in electrical energy trading through electronic systems for next-day and intra-day energy products.
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