Kuwait Fund grants $650,000 for Study on Gulf’s Power Grid Links

The Kuwait Fund for Arab Economic Development has signed a 200,000 Kuwaiti dinar ($646,000) grant agreement with the GCC Interconnection Authority (GCCIA) to finance a feasibility study on connecting the Gulf power grid with electricity networks outside the GCC.

The study will assess opportunities to expand the GCC power interconnection system to neighbouring countries, including their electricity requirements and the technical and economic feasibility of connecting their national grids to the Gulf network.

The Kuwait Fund press statement did not identify the countries or the interconnection routes but said the study will identify potential phases for future expansion, determine the priority phase, assess and select the most appropriate interconnection option based on technical and economic criteria.

The study will also undertake technical, economic and environmental assessments of the proposed project, including its key components, costs, implementation arrangements and anticipated timeframe.

It will assess the potential economic and social benefits for GCC member states and countries connected to the interconnection system, as well as the operation of the GCC network alongside neighbouring national grids.

A preliminary assessment of potential environmental and social impacts and proposed mitigation measures will also be undertaken.

The agreement was signed by GCCIA CEO Ahmed bin Ali Al Ibrahim and Kuwait Fund Acting Director General Rashaid Ali Al-Bader.

The Kuwait Fund has previously extended three loans with a combined value of KWD78 million ($252 million) to GCCIA to support expansion of the GCC power interconnection system and its connection to southern Iraq's electricity grid.

The projects include the Al Wafrah Substation in Kuwait, which facilitates electricity exchanges and enables the country to access surplus power available through the GCC interconnection system.