Oman’s New GCC Power Interconnection: Key Benefits for Investors and Businesses in the Region
MUSCAT: The Gulf Cooperation Council Interconnection Authority (GCCIA) has signed significant contracts aimed at expanding the regional electricity grid, a crucial step towards enhancing power connectivity between the UAE, Oman, and the broader Gulf region. The agreements were formalized during an official ceremony held at the GCCIA headquarters in Dammam, Saudi Arabia.
The ceremony was presided over by Mohsin bin Hamad al Hadhrami, Under-Secretary of the Ministry of Energy and Minerals and Chairman of the GCC Interconnection Authority Board of Directors. Attendees included members of the GCCIA Board, senior executives, and representatives from the companies awarded the implementation contracts.
Contracts were signed on behalf of the GCCIA by CEO Ahmed bin Ali al Ibrahim, with implementing companies represented by their respective leaders.
According to the GCCIA, these agreements will establish a direct connection between Oman’s national grid and the GCC network. This upgrade is expected to enhance energy security, improve grid stability, and support Oman’s clean energy goals.
A central feature of the initiative is the construction of a 400 kV double-circuit transmission line, connecting the UAE’s Sila’a station to Oman’s new Ibri station, which will be developed by DEWA. This 530 km line will significantly increase cross-border electricity flow, creating new opportunities for energy exchange and trade. Two new 400 kV substations will also be constructed in Ibri and Al Baynunah, incorporating advanced control, protection, and communication systems to ensure operational reliability and safety.
The broader GCC-UAE expansion includes a 96 km double-circuit line linking Sila (UAE) to Salwa (Saudi Arabia), alongside substantial upgrades to existing substations in Ghunan, Sila, and Salwa. Enhanced equipment such as new circuit breakers, reactors, and modern protection systems will improve the overall efficiency of the GCC grid.
Additionally, a dynamic compensation station (STATCOM) will be installed to enhance grid stability and support increased transmission capacity of up to 1,600 MW. Construction on all project components is slated to commence in the fourth quarter of 2025, with full operational capabilities expected by late 2027.
For Oman, this project offers substantial long-term benefits. Directly linking to the GCC grid will provide the Sultanate with greater flexibility in balancing supply and demand, reduce generation costs, and optimize fuel usage. The interconnection will also facilitate the import or export of surplus electricity, supporting Oman’s transition to renewable energy. Furthermore, the enhanced regional grid is anticipated to lower carbon emissions and bolster collective GCC efforts toward building a more sustainable, resilient, and integrated energy system.
Special Analysis by Omanet | Navigate Oman’s Market
The recent contracts signed by the GCCIA to enhance the electricity grid present significant opportunities for businesses in Oman, particularly in renewable energy sectors. This interconnection allows for greater energy exchange, enabling flexible supply management, which can reduce operational costs and fuel dependence. Smart investors should consider positioning themselves in the renewable energy landscape, as this initiative will likely drive demand for sustainable energy solutions and technologies in the region.
