Oman has secured a $100 million loan agreement from the Qatar Development Fund to help finance its connection to the Gulf Cooperation Council (GCC) power grid. The project, estimated to cost over $700 million, will involve constructing two 400 kilovolt (kV) overhead transmission lines linking the GCC Interconnection Authority’s (GCCIA) Al Sila station on the UAE-Saudi Arabia border to a new station at Ibri in Oman. The total length of the lines will be 530 kilometers, with two new 400kV substations to be built—one at Ibri and another at Al Baynunah in Abu Dhabi.
This project is set to begin in the second half of 2025, with completion expected by the first half of 2027. The interconnection will significantly increase Oman’s power generation capacity and reduce the immediate need for a new power plant. It will also allow for greater integration of renewable energy sources, such as solar and wind power, and lead to reduced carbon emissions across the connected regions.
Ahmed Al Ebrahim, CEO of GCCIA, emphasized that the interconnected network will allow for better handling of increasing energy loads, enable future expansion, and provide substantial annual savings through reduced operational costs. Additionally, the network will foster increased electricity exchange and trade among GCC nations, and potentially with Iraq, enhancing regional energy cooperation.
The GCCIA’s existing grid already connects Kuwait, Saudi Arabia, Bahrain, Qatar, and the UAE. The interconnected system has been instrumental in preventing over 2,800 electrical outages in the Gulf by enabling the instantaneous transmission of required power. There are also plans to expand the transmission capacity in the UAE by extending lines from Saudi Arabia and building a new substation, a $205.5 million project slated for completion by 2027.
