RIYADH: In a bid to enhance regional connectivity, the Gulf Electricity Interconnection expansion project has secured a $570 million loan from the Kuwait Fund for Arab Economic Development, according to an official release.
The initiative is a part of the Gulf Cooperation Council Interconnection Authority’s efforts to address energy challenges faced by its member nations and Iraq.
The project aims to secure technical and economic benefits by increasing the capacity, efficiency, and reliability of the electrical networks in GCC countries.
Kuwait, as one of the primary beneficiaries of the development, will receive an additional supporting capacity of 2,500 megawatts, further enhancing the country’s electricity grid.
The project is also set to have a significant impact on the electrical network in southern Iraq. The region will receive an electrical capacity boost of 500 MW, which will not only meet part of its energy demand but also enhance the performance and stability of its electrical network.
The scope of the development encompasses the creation of a primary linking station at Al-Wafrah in Kuwait, with an expected completion date set for December 2024.
Additionally, the project will involve the construction of dual overhead transmission lines to connect the station to the Al-Fadhili station in Saudi Arabia.
It will then extend double overhead lines back to the Al-Zour area in Kuwait.
Furthermore, cables will connect the Al-Wafrah area to the Sabah Al-Ahmad 3 and Sabah Al-Ahmad 4 stations in Kuwait, ensuring they are plugged in to the country’s electrical network.
Lastly, 400-kilovolt overhead lines will be extended to the Al-Faw station in southern Iraq, connecting it to the country’s electrical grid and subsequently to the global network.
The project is expected to achieve an economic return of 14.4 percent, and the initiative also aligns with broader sustainability goals.
In March 2022, the Kuwait Fund for Arab Economic Development inked a loan agreement to provide 35 million Kuwaiti dinars ($115 million) to finance the expansion.
According to an official release, the fund has plans to extend an additional loan to the project, with the terms and conditions to be negotiated and agreed upon at a later date.
