RIYADH, 15 August — Jameel Al-Hujailan, secretary-general of the six-nation Gulf Cooperation Council (GCC), yesterday welcomed a resolution by the Kingdom endorsing the formation of a GCC Power Grid Authority to supervise the implementation of the GCC electricity grid project.
This huge power-grid linkage project, once implemented, will save the Gulf states billions of dollars, as it will reduce the cost of generating power.
“The Kingdom’s appointment of a panel to supervise the GCC power grid project is the final step toward project implementation, and that means a big step forward for economic integration throughout the Gulf region,” said Al-Hujailan.
The GCC Power Grid Authority, comprising representatives from all six Gulf countries, will be based in Dammam.
Al-Hujailan said that studies have revealed that the cost of linking the GCC power grids will be lower than the setting up of several new power generation plants in the Gulf region. The execution of this project, he said, will ensure regular power supply to the thousands of industrial units operating in the Gulf countries, thus helping to boost their productivity substantially.
This project will allow GCC countries to sell their surplus power to one another.
Electricity consumption is surging in the Gulf states. In Saudi Arabia alone, the total number of electricity subscribers exceeds 3.4 million.
More than 7,100 cities and villages in Saudi Arabia have so far been provided electricity.
The Kingdom’s power requirement is growing at a rate of 5.5 percent annually. However, the Kingdom will still need to invest SR140 billion within the next twenty years to cope with an increase in power consumption.
Giving details of the GCC power grid linkage project, Al-Hujailan said that it will also help kick-start industrial growth in the region, which in turn will create more jobs for Gulf nationals.
The first phase will link the power grids of Saudi Arabia, Kuwait, Bahrain and Qatar with Kuwait reportedly bearing 30 percent of the total cost. The United Arab Emirates and Oman will be linked in the second phase.
