The Ministry of Electricity in Kuwait signed an agreement with the Gulf Electricity Interconnection Authority to purchase 500 megawatts of electrical energy to cover its needs during the month of next June through the Gulf Electricity Interconnection Network extending from the Sultanate of Oman to the State of Kuwait.
The agreement is subject to renewal during the coming months of July and August, according to the Kuwaiti Ministry of Electricity, Water and Renewable Energy.
Haitham Al-Ali, Acting Undersecretary of the Kuwaiti Ministry of Electricity, told reporters during the signing that the contract includes the purchase of 300 megawatts from the Sultanate of Oman and 200 megawatts from Qatar, noting that it extends from the first of June to the 31st of August.
Al-Ali added, “The contract was signed directly with the Gulf Interconnection Authority, and they deal with Oman and Qatar in coordination with Kuwait.”
For his part, CEO of the Gulf Electrical Interconnection Authority, Ahmed Al-Ibrahim, said that exploiting the Gulf electrical interconnection network for energy exchange and trade between countries is one of the most important goals of the Gulf countries’ investment in the authority and the network.
He added that Kuwait owns about 27% of the network and is its second largest shareholder.
Al-Ibrahim also said that “the Gulf Cooperation Council countries have the potential to become a global center for the exchange of electrical energy,” according to what was reported. Gulf Electricity Interconnection Authority account on the X platform.
M. Ahmed Al-Ibrahim, CEO of #Gulf_Electric_Interconnection_Authority:
The GCC countries have the potential to become a global center for the exchange of electric energy.— GCCIA (@gccia) May 19, 2024
Construction work on the Gulf electrical interconnection network began in 2005 and ended in 2009.
The project was divided into 3 stages:
- Connecting electrical networks in Kuwait, Saudi Arabia, Bahrain and Qatar
- Then linking the electricity networks of the Emirates and the Sultanate of Oman
- Then complete the continuous electrical connection from Kuwait to the Sultanate of Oman.
Kuwait – 5 million people – relies heavily on the use of air conditioners during the summer in one of the hottest countries in the world, which greatly increases energy consumption.
The Gulf Cooperation Council Electricity Interconnection Authority is responsible for managing a transmission system that connects the energy networks of all six GCC countries.
A report by the Authority indicates that the Gulf Cooperation Council countries have saved about $3.3 billion from the Gulf electrical interconnection project since the beginning of its operation in 2009.
The report adds that the capital cost of the Gulf electrical interconnection project in its three phases amounted to $1.4 billion until the end of 2022, while the operational cost from 2009 amounted to approximately $525.6 million.