Prince Saud bin Bandar Sponsors Signing of the Contract to Link Gulf Electricity Market with Iraq
Eastern Province, Kingdom of Saudi Arabia, Dubai, UAE, October 10, 2024: His Royal Highness Prince Saud bin Bandar bin Abdulaziz, Deputy Governor of the Eastern Province, sponsored the signing ceremony for the contract to link the Gulf electricity market with the Republic of Iraq on Wednesday 9 October at the headquarters of the Gulf Cooperation Council Interconnection Authority (GCCIA) in Dammam. During his visit, His Royal Highness also launched the project to upgrade the systems of the GCCIA Control Center.
The ceremony was attended by Eng. Ahmed Al Ebrahim, CEO of GCCIA, and Eng. Saleh Al Amri, CEO of the GCC Lab. The upgrade aims to improve the efficiency and resilience of the electricity grid, addressing current and future challenges. The new systems also incorporate advanced cybersecurity measures, protecting against increasing cyber threats and ensuring continuous and safe operations.
His Royal Highness, the Deputy Governor of the Eastern Province, expressed his appreciation for the efforts he witnessed during his visit, commending the dedication of those working at the Gulf Cooperation Council Interconnection Authority (GCCIA) to ensure the security and continuity of energy flow in the GCC countries.
His Royal Highness stated, “The implementation of the project linking the Gulf electricity market with the brotherly Republic of Iraq will contribute to the sustainability of energy supply, the establishment of local projects, and the enhancement of the stability of Iraq’s electricity grid. This will reduce reliance on expensive traditional energy sources and increase the efficient use of available resources. During my visit, I observed the great ambition of those leading this vital project.” He further emphasized that the Gulf electricity interconnection project is a strategic initiative that strengthens cooperation in economic and social fields between the GCC countries and neighbouring states. The project enjoys the support of the esteemed leaders of the GCC nations in their efforts to ensure the security and stability of the region’s energy system.
Eng. Ahmed Al Ebrahim, CEO of GCCIA, expressed his gratitude to His Royal Highness, the Deputy Governor of the Eastern Province, for sponsoring the signing ceremony. He stated, “Since the official launch in 2009, the Gulf electricity interconnection project has been one of the most significant infrastructure linkage projects endorsed by the leaders of the GCC countries. It has received special attention from them, may God preserve them. We have succeeded in achieving our noble objective, as well as reaping numerous economic benefits from the project. Since its inception, the project has helped the GCC countries avoid any partial or complete blackouts with a 100% success rate, by providing immediate support during emergencies and transferring the required energy through the electricity network that spans more than 1,000 kilometers from Kuwait to Oman. So far, we have provided over 2,800 instances of support, including more than 50 cases related to renewable energy losses due to the drop in renewable energy production.”
Al Ebrahim added, “Since its operation, the project has generated savings of approximately $3.6 billion, compared to the investment and operational costs, which amounted to around $1.5 billion.”
He emphasized the importance of expanding the project beyond merely ensuring energy flow, stating that tangible steps have been taken through the signing of memorandums of understanding to explore the possibility of connecting with Jordan and Egypt after Iraq. By the beginning of next year, the actual operation of the connection with the Republic of Iraq will commence, representing a promising step toward reaching Turkey, Europe, and the entire world. Our vision is, wherever electricity reaches, we will reach.”
Al Ebrahim further added, “The signing of the contract to implement the project linking the Gulf electricity market with the Republic of Iraq will enhance energy security and enable GCC countries to supply Iraq with approximately 3.94 terawatt-hours annually by 2025, at competitive prices lower than local production costs, which will help reduce public expenditures.”
Eng. Saleh Al Amri, CEO of the GCC Lab, stated in his speech, “Under the supervision of the Saudi Ministry of Energy, the GCC Lab has become one of the world’s largest and most advanced energy labs. The lab, located in Dammam’s Third Industrial City, was established with a budget exceeding SAR 1.1 billion. It provides testing, consulting, inspection, and training services across various technical fields and has certified over 11,000 individuals in more than 130 global professional certifications. It has also formed strategic local and international partnerships with leading manufacturers, service providers, universities, and research institutes. Additionally, the lab has played a vital role in certifying hundreds of Saudi and international products entering and leaving the Kingdom’s markets.”