GCC and Iraq power link to be operational by next year

A power grid connecting the GCC countries and Iraq is slated to become operational in the first half of 2026.

The Gulf Cooperation Council Interconnection Authority (GCCIA) and Iraq’s electricity ministry are finalising the preparations for launching the interconnection project, the UAE state-run Wam news agency reported.

The discussions were held during a meeting in Bahrain, the report said.

The project is designed to export power from GCC countries to Iraq by linking southern Iraq to the Gulf power grid, thereby contributing to the stability of regional electrical networks.

The operational contracts scheduled for signing before the project’s official launch were reviewed, along with initial discussions on the power purchase agreement. No financial or cost of the project was disclosed.

Ahmed Al-Ebrahim, CEO of the GCCIA, said that connecting the Gulf electricity market with Iraq will create new opportunities for regional electricity interconnection and power trade, supporting the GCC countries’ objectives to establish a competitive electricity market.

Al-Ebrahim told Reuters in November that the authority expects to invest more than $3.5 billion over the next 10 years to strengthen the grid, integrate renewable sources and open new export opportunities to neighbouring countries.

In June the Abu Dhabi Fund for Development signed an AED752 million ($205 million) loan agreement with GCCIA to support the expansion of the GCC power grid interconnection with the UAE’s national grid.

The GCCIA-UAE interconnection expansion project is designed to enhance the authority’s grid and increase the electricity transmission capacity with the UAE from 2,400 megawatts (MW) to 3,500MW, according to the GCCIA’s website.

The current GCCIA network connects Kuwait, Saudi Arabia, Bahrain, Qatar and the UAE.