GCCIA and Qatar Fund for Development Invest $100 Million in Oman-Gulf Power Interconnection

The Gulf Cooperation Council Interconnection Authority (GCCIA) and the Qatar Fund for Development (QDF) have signed a $100 million financing agreement to connect the Gulf power grid with Oman. This strategic project, with a total cost exceeding $700 million, aims to enhance regional energy security and efficiency.

Share:

Gain full professional access to energynews.pro from 4.90€/month.
Designed for decision-makers, with no long-term commitment.

Over 30,000 articles published since 2021.
150 new market analyses every week to decode global energy trends.

Monthly Digital PRO PASS

Immediate Access
4.90€/month*

No commitment – cancel anytime, activation in 2 minutes.

*Special launch offer: 1st month at the indicated price, then 14.90 €/month, no long-term commitment.

Annual Digital PRO Pass

Full Annual Access
99€/year*

To access all of energynews.pro without any limits

*Introductory annual price for year one, automatically renewed at 149.00 €/year from the second year.

The power interconnection project between the Gulf Cooperation Council (GCC) and Oman takes a major step forward with the signing of a $100 million financing agreement between the Gulf Cooperation Council Interconnection Authority (GCCIA) and the Qatar Fund for Development (QDF). The ceremony took place in Muscat under the patronage of Oman’s Minister of Energy and Minerals, Eng. Salim Nassir Al Aufi. The agreement was signed by Eng. Ahmed Ali Al-Ebrahim, CEO of GCCIA, and Fahad Hamad Al Sulaiti, Director General of QDF.

A $700 Million Project for Gulf Energy Integration

This project aims to establish a direct connection between the GCC interconnected network and Oman, with an overall budget exceeding $700 million. It involves the construction of two 400 kV overhead transmission lines linking the Al Sila station in the United Arab Emirates to the newly built Ibri station in Oman. The total length of these lines will span 530 kilometers.

The planned electrical infrastructure also includes the development of two 400 kV substations, one in Ibri and another in Al Baynunah. These facilities will be equipped with advanced control, protection, and communication systems to ensure reliable and optimized grid operations. Additionally, a dynamic compensator will be installed to enhance network stability and increase transmission capacity.

Increased Transmission Capacity and Reduced Operational Costs

The interconnection is expected to provide a total transmission capacity of 1,700 MW, with a net transfer capacity estimated at 1,200 MW. This initiative aligns with the Gulf nations’ goal of improving energy integration and maximizing regional energy synergies.

The economic impact of this project is significant. By optimizing electricity exchanges between Oman and the GCC countries, it reduces the need for costly new power plant investments. Furthermore, by enhancing the flexibility and resilience of the interconnected grid, this infrastructure enables more efficient demand and supply management.

Toward Greater Energy Efficiency in the Gulf

This project is also expected to lower operational costs for participating countries. The improved efficiency of the interconnected grid will reduce annual energy expenditures while facilitating the exchange of surplus electricity among member states.

Finally, by reducing reliance on local generation infrastructure, the interconnection could play a crucial role in optimizing the region’s energy resources. This investment marks a major advancement in energy cooperation within the GCC and contributes to strengthening the Gulf electricity market.

The French Academy of Sciences calls for a global ban on solar radiation modification, citing major risks to climate stability and the world economy.
The halt of US federal services disrupts the entire decision-making chain for energy and mining projects, with growing risks of administrative delays and missing critical data.
Facing a potential federal government shutdown, multiple US energy agencies are preparing to suspend services and furlough thousands of employees.
A report reveals the economic impact of renewable energy losses in Chile, indicating that a 1% drop in curtailments could generate $15mn in annual savings.
Faced with growing threats to its infrastructure, Denmark raises its energy alert level in response to a series of unidentified drone flyovers and ongoing geopolitical tensions.
The Prime Minister dismissed rumours of a moratorium on renewables, as the upcoming energy roadmap triggers tensions within the sector.
Kuwait plans to develop 14.05 GW of new power capacity by 2031 to meet growing demand and reduce scheduled outages, driven by extreme temperatures and maintenance delays.
The partnership with the World Bank-funded Pro Energia+ programme aims to expand electricity access in Mozambique by targeting rural communities through a results-based financing mechanism.
The European Commission strengthens ACER’s funding through a new fee structure applied to reporting entities, aimed at supporting increased surveillance of wholesale energy market transactions.
France’s Court of Auditors is urging clarity on EDF’s financing structure, as the public utility confronts a €460bn investment programme through 2040 to support its new nuclear reactor rollout.
The U.S. Department of Energy will return more than $13bn in unspent funds originally allocated to climate initiatives, in line with the Trump administration’s new budget policy.
Under pressure from Washington, the International Energy Agency reintroduces a pro-fossil scenario in its report, marking a shift in its direction amid rising tensions with the Trump administration.
Southeast Asia, facing rapid electricity consumption growth, could tap up to 20 terawatts of solar and wind potential to strengthen energy security.
The President of the Energy Regulatory Commission was elected to the presidency of the Board of Regulators of the Agency for the Cooperation of Energy Regulators for a two-and-a-half-year term.
The Australian government has announced a new climate target backed by a funding plan, while maintaining its position as a major coal exporter, raising questions about its long-term energy strategy.
New 15-year agreement for the exploration of polymetallic sulphides in the Indian Ocean, making India the first country with two licences and the largest allocated perimeter for these deposits.
The Argentine government launches a national and international tender to sell 44% of Nucleo Electrica SA, continuing its policy of economic withdrawal through capital markets.
A report by Rhodium Group anticipates stagnation in US emissions, a result of the political shift favouring fossil fuels since Donald Trump returned to office.
A sudden fault on the national grid cut electricity supply to several regions of Nigeria, reigniting concerns about the stability of the transmission system.
Re-elected president Irfaan Ali announces stricter production-sharing agreements to increase national economic returns.