Iraq, GCC sign an agreement to connect electricity markets
Shafaq News/ On Wednesday, the Gulf Cooperation Council(GCC) countries signed a pivotal contract to implement a project that willconnect the Gulf electricity market with Iraq.
The initiative aims to bolster energy security in the regionand enable GCC countries to supply Iraq with approximately 3.94 terawatt hoursof electricity annually. The prices are expected to be competitive, fallingbelow the cost of local production, which could lead to significant reductionsin public expenditure for Iraq.
The agreement was formalized at the headquarters of the GCCInterconnection Authority in Dammam, eastern Saudi Arabia, during an eventattended by Saud bin Bandar bin Abdulaziz, the Deputy Emir of the EasternProvince. He inaugurated the updated control center systems for theinterconnection network, designed to enhance the efficiency and flexibility ofelectricity systems in addressing current and future challenges.
Bin Abdulaziz highlighted the project’s potential to “ensuresustainable energy supply, promote local projects, and stabilize Iraq'selectrical grid. This will reduce the country’s reliance on costly fossil fuelsand improve the utilization of available resources.”
"This Gulf electricity interconnection project is astrategic initiative that strengthens economic and social cooperation among GCCcountries and their neighbors," Bin Abdulaziz stated. "It has thefull support of GCC leaders to achieve energy security and stability in theregion."
The Deputy Emir also emphasized the importance of expandingthe project's scope beyond merely ensuring energy flow. He noted that “initialsteps have been taken through the signing of memorandums of understanding toexplore the possibility of electrical interconnection with Iraq, Jordan, andEgypt. Actual operations are set to commence in early 2025 with Iraq.”
