Bid & Tender
TEI - Energy Outlook

GCC’s Network Expansion

The GCC’s significant success in electricity interconnectivity for the six-member bloc offers substantial long-term savings and benefits while allowing for more efficient electricity generation and distribution, providing a sustainable alternative within the energy sector leading to a marked decrease in carbon emissions.

The GCC Interconnection Authority (GCCIA), which owns and manages the Gulf electrical interconnection network, has achieved savings of approximately $3.6 billion, since its official launch in 2009, through optimized resource utilization, and reduced operational expenditures compared to the investment and operational costs of building separate reserve power plants.

The GCCIA network is actively managed in real-time from its Control Centre to ensure stability and reliability across the GCC member states. Since its inception, the project has helped the GCC countries avoid any partial or complete blackouts with a 100% success rate, by providing immediate support during emergencies and transferring the required energy through the electricity network that spans more than 1,000 km from Kuwait to Oman.

A project for the upgradation of the systems of GCCIA Control Centre has been launched to improve the efficiency and resilience of the electricity grid as well as addressing the current and future challenges. The new systems incorporate advanced cybersecurity measures, protecting against increasing cyber threats and ensuring continuous and safe operations.

The upgraded system will also enable more efficient management of renewable energy and provide advanced forecasting capabilities for energy fluctuations using AI and weather data analysis.

The GCCIA continues to expand its network, with plans to invest over $3.5 billion in the next decade to double transmission capacity, further integrating renewable energy sources and also facilitating electricity exports beyond the Gulf region.

The GCC grid is due to connect to Iraq in April 2026, its first external link beyond the region, and is also looking at connecting to Jordan and Egypt and possibly Syria in future, says Ahmed Al-Ebrahim, CEO of the GCCIA. The project to connect the network to southern Iraq, aims to supply it with approximately 600 MW of power.

The region’s renewable energy capacity will increase immensely in the future. Saudi Arabia aims to generate 50% of its electricity from renewable sources by 2030; this would create major potential for power exports from the Gulf to Egypt and eventually to Europe.

Several major projects are in progress to enhance the network's regional capacity. A new direct link between Oman and the main GCC grid is under design to enhance system reliability and increase transfer capacity to Oman. It is expected to be completed by Q4, 2026. A strategic project designed to increase transmission capacity with the UAE from 2,400 MW to 3,500 MW, with completion expected by Q1, 2027.

This unified Gulf electricity market to facilitate cross-border power trade, is expected to create opportunities exceeding $20 billion over the next 15 years.

The collaborative power interconnection strategies forge regional partnerships, providing energy security and sustainable development efforts, thus contributing to long-term national economic growth.


Pallavi Agrawal

Editor