The Gulf Cooperation Council Interconnection Authority (GCCIA) has commenced construction on a significant electricity interconnection project linking Oman to the Gulf region's power grid. This initiative represents a major step toward enhancing energy integration, security, and cooperation across the Gulf.

The project involves the development of a direct connection between the GCC power grid and Oman’s national grid, aiming to improve electricity reliability, enable renewable energy integration, and strengthen emergency power support. The construction includes two 400-kilovolt transmission lines spanning approximately 530 kilometers, connecting the Al Sila substation in the UAE to the Ibri substation in Oman. Additionally, two state-of-the-art substations will be built in Ibri and Al Baynounah, equipped with advanced protection, control, and communication systems. A dynamic compensation station is also planned to enhance grid stability and boost transmission capacity to 1,600 megawatts, improving efficiency in electricity exchange.

A Strategic Vision for Regional Integration

Speaking on the occasion, Mohsin Hamed Al Hadhrami, Under-Secretary of Oman’s Ministry of Energy and Minerals and Chairman of the Board of Directors of GCCIA, emphasized the strategic importance of this development. "The initiative reflects the strategic vision of GCC leadership to position electrical interconnection as a cornerstone of Gulf integration", he stated. He underlined the importance of energy security as a pillar of regional stability, economic growth, and sustainable development.

Al Hadhrami also highlighted the long-standing benefits of the GCC power interconnection network, which has delivered operational and economic advantages for over 25 years. He noted that the direct connection with Oman will enhance operational flexibility and serve as a model of successful Gulf partnerships in financing infrastructure projects that support the energy transition.

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One of the Largest GCCIA Expansion Projects

This interconnection project is described as one of the largest expansion initiatives in the history of the GCCIA. Ahmed Ali Al Ebrahim, Chief Executive Officer of GCCIA, confirmed the project involves a total investment of approximately US$700 million. Key contributors include the Qatar Fund for Development and Sohar International Bank, which have provided US$600 million in financing agreements.

"The project is designed to meet rising electricity demand, enable renewable energy integration, strengthen emergency preparedness, and increase power exchange capacity across GCC member states", Al Ebrahim stated.

Fahad Hamad Al Sulaiti, Director-General of the Qatar Fund for Development, echoed this sentiment, emphasizing that the financing aligns with the fund’s commitment to supporting infrastructure projects that promote regional integration and sustainable economic development.

Sohar International Bank’s Chief Executive Officer, Abdulwahid Mohamed Al Murshidi, noted that the bank’s participation in the project aligns with Oman Vision 2040, contributing to economic integration across the Gulf and addressing challenges related to renewable energy and carbon emissions.

Enhancing the Gulf’s Energy Cooperation Model

Once operational, the interconnection is expected to improve grid reliability, strengthen emergency power support mechanisms, and accelerate the integration of renewable energy. It is also anticipated to deliver significant economic savings and bolster the GCC power grid as a leading example of regional energy collaboration.

This ambitious project demonstrates the continued commitment of Gulf nations to advancing sustainable energy solutions while reinforcing infrastructure that supports both economic and environmental goals. With completion on the horizon, the GCCIA and its partners are poised to further unite the region through this groundbreaking energy initiative.

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