Grid Interconnection to Save Gulf Cooperation Council Countries $3.5 Billion

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Researched by Industrial Info Resources (sugar Land, Texas)--When Saudi Arabia, Bahrain, Qatar and Kuwait are interlinked by a new power grid this year, the total savings from the rate of return after three years of operation is projected at $3.5 billion. In the first phase of the grid connection project, six member states of the Gulf Cooperation Council (GCC) will be linked in the network and ensured an adequate and secure supply of electrical power. Saudi Arabia's Ministry of Water and Electricity said the project's cost would be recovered by 2011.

Toward the end of 2005, the GCC Interconnection Authority signed contracts with six companies for a total investment of $1.07 billion for Phase I of the grid project. This phase covers a double-circuit 400-kilovolt (kV), 50-hertz line from Al-Zour in Kuwait to Ghunan in Saudi Arabia with an intermediate connection in Saudi Arabia at Al Fadhili, associated substations and a back-to-back HVDC interconnection at the 380-kV, 60-hertz system at Al Fadhili.

The grid is designed to reduce the cost of power in participating countries and after the completion of Phase I and the resulting savings on generation capacity, the total cost savings from the rate of return after four years of operation on this phase alone is estimated at $2.5 billion. Saudi Arabia will meet 40% of the cost of the first phase, Kuwait will meet 36.5%, Qatar will meet 13.5% and Bahrain will meet 10%. When estimates were last published in September 2007 the total project cost stood at $7 billion.

The United Arab Emirates (UAE) and Oman will be connected in the second phase of the project, and this will be followed by the joining of the two grid systems into one network. In Phase III, 400-kV and 200-kV circuits and associated substations will link centers in the UAE and Oman plus a 220-kV line linking the UAE with Oman. On completion in 2010, Kuwait and Saudi Arabia will each receive an extra 1,200 megawatts (MW) of capacity, the UAE will receive 900 MW, Qatar will receive 750 MW, Bahrain will receive 600 MW and Oman will receive 450 MW.

A study on the interconnection of Egypt with Saudi Arabia is underway with a view to creating a pan-Arab grid.

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