Gulf Cooperation Council Power Grid Nears Completion

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Researched by Industrial Info Resources (Sugar Land, Texas)--The Gulf Cooperation Council's (GCC) power grid was set to go live on June 28 on an experimental basis, with work on the $1.1 billion first phase, involving the North Grid, being completed on schedule.

The project, which aims to link the six GCC states through a single power network, comprises two major grids, the North and South grids. The North Grid runs through the states of Kuwait, Saudi Arabia, Bahrain and Qatar, while the South Grid includes United Arab Emirates and Oman. Work on the GCC grid is being executed in a phased manner, with the first phase addressing operations of the North Grid. The second phase of the project, involving the South Grid, has also been completed, with all associated infrastructure being set up to connect the power lines of United Arab Emirates and Oman. However, the South Grid is expected to be put to use only at a later date.

In addition to the North and South grids, the GCC power grid project also covers two agreements to be signed by the beneficiaries of the venture. The first agreement, executed by the electricity and water ministries of the individual states, binds the GCC states to a common power network and also governs mutual relations in regard to power. This agreement, which has been in effect since March 23, 2009, enables local grid authorities to conduct business with the GCC Interconnection Authority (GCCIA) regarding the use of common facilities.

The second agreement pertains to regulations and procedures involved in the trading and exchange of power among the member states using the GCC grid in both normal and emergency situations. The Power Exchange and Trading Agreement is undergoing final revisions and is expected to be signed shortly.

According to GCCIA, which is overseeing part of the North Grid portion of the project, member states would be able import power based on the capacity of their respective interconnectors. Saudi Arabia and Kuwait will be able to draw about 1,200 megawatts (MW) each, followed by United Arab Emirates with 900 MW. Quatar will be able to draw about 750 MW, Bahrain 600 MW, and Oman 400 MW of power from the central grid.

The common power network project, which was launched about eight years ago, is expected to usher in an era of power security with states being able to generate, transmit and trade surplus power. Costs associated with independent installations and capacity expansion programs are expected to come down by almost 50%, saving billions of dollars over the next two decades.

Test runs have already been conducted at various points of the common grid, including Kuwait's Al Zour station and the Gonan region control center in Saudi Arabia. The final phase of the venture, involving integration of the North and South grids, is scheduled to be completed by 2011.

However, apart from the GCC grid, the member states have also charted out individual plans to ramp up their power generation capacities, with total investments of about $45 billion. Reports from the U.K.'s Benoil Services Limited (Newbury) indicate that Saudi Arabia is looking to raise its power output by 20,000 MW through a series of both greenfield and brownfield ventures and an investment of about $30 billion. United Arab Emirates has plans to generate an additional 7,000 MW at a cost of $8 billion, while Kuwait is expected to invest $3.6 billion to augment its capacity by 5,000 MW. According to the report, Qatar will pump in $3 billion to add another 2,500 MW to its capacity, while Bahrain is expected to spend $1 billion on capacity expansion. Oman will invest approximately $800 million to increase its energy output.

In the long run, a common power grid is expected to link all Arab countries, with electricity becoming a key tradable commodity in the region.

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