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The Gulf Cooperation Council Interconnection Authority (GCCIA) and the Qatar Development Fund (QDF) formalized their partnership in a landmark financing agreement to the tune of USD 100 million. The event took place in a ceremony held today in Muscat under the patronage of Eng. Salim Nassir Al Aufi, Minister of Energy and Minerals. This agreement paves the way for a transformative direct grid connection project linking the GCCIA network with the Sultanate of Oman, the total cost of which exceeds USD 700 million. The agreement was duly executed by Eng. Ahmed Ali Al-Ebrahim, CEO, on behalf of the GCCIA, and Fahad Hamad Al Sulaiti, Director General, on behalf of the Qatar Fund for Development. The project involves the construction of two 400 kV overhead transmission lines connecting the GCCIA’s Al Sila station in the United Arab Emirates to the Ibri station, which the GCCIA will construct in the Sultanate of Oman. The total length of the lines will be 530 kilometers. The project also includes the construction of two 400 kV substations, one in Ibri and the other in Al Baynunah. These substations will be equipped with advanced control, protection, and communication systems to ensure reliability, efficiency, and safety. A dynamic compensator station will also be installed to bolster grid stability and increase transmission capacity. This interconnection project will provide a total transmission capacity of 1,700 MW, with a net transfer capacity of 1,200 MW. This project marks a pivotal stride toward the seamless integration of Gulf power grids, a vital strategic initiative designed to fortify regional energy network connectivity and bolster the reliability and sustainability of the region’s electricity systems. It resonates with global imperatives for energy infrastructure development and the pursuit of sustainable development goals. This project promises a wealth of advantages for both the Sultanate of Oman and the GCC nations. By unlocking hundreds of megawatts of additional generation capacity, it significantly reduces the imperative for costly new power plant construction. Furthermore, it will streamline and amplify electricity exchange between the GCC countries and Oman, fostering greater flexibility and resilience within regional power systems. Operational costs will also see a marked decrease, as the interconnected network reduces the operational expenditures of participating nations, leading to substantial annual financial savings. Critically, this initiative will contribute significantly to the reduction of carbon emissions, directly supporting global environmental conservation efforts. |
