The Gulf Cooperation Council Interconnection Authority has announced the start of implementation of the direct electricity interconnection project linking the GCC grid with Oman’s network, marking a major step in regional energy integration and infrastructure development.

The project includes two 400-kilovolt transmission lines extending around 530 km, linking the Al Sila substation in the UAE with the Ibri substation in Oman. It also involves the construction of two main 400-kilovolt substations in Ibri and Al Baynounah, equipped with advanced protection, control and communication systems, said a WAM news agency report.

A dynamic compensation station will be built to enhance grid stability and increase transmission capacity to up to 1,600 megawatts, improving electricity exchange efficiency between Oman and GCC states.

The total project cost is around $700 million, financed through Gulf partnerships, with $600 million provided through agreements with Qatar Fund for Development and Sohar International Bank.

The project is expected to enhance network reliability, strengthen emergency support capabilities, support renewable energy integration and deliver significant economic savings, reinforcing the GCC power interconnection as a leading model of regional energy integration.

The announcement ceremony was attended by Sheikh Mubarak bin Fahad Jassim Al Thani, Ambassador of Qatar to Oman; Yaqoob Saif Al Kiyumi, Vice Chairman of the Board of Directors of the GCC Interconnection Authority; Ahmed Ali Al Ebrahim, Chief Executive Officer of the Authority; Fahad Hamad Al Sulaiti, Director-General of the Qatar Fund for Development; and Abdulwahid Mohamed Al Murshidi, Chief Executive Officer of Sohar International Bank, alongside representatives of Gulf energy companies operating in Oman.

Mohsin Hamed Al Hadhrami, Under-Secretary of the Ministry of Energy and Minerals in Oman and Chairman of the Board of Directors of the GCC Interconnection Authority, said the project reflects the vision of GCC leaders to make electrical interconnection a pillar of Gulf integration, stressing that energy security underpins stability, economic growth and sustainable development.

He noted that the GCC power interconnection has delivered proven benefits for more than 25 years by enhancing grid reliability and achieving significant economic savings.

He added that the direct interconnection with Oman strengthens operational flexibility and represents a successful model of Gulf partnership in financing strategic infrastructure projects that support energy transition and sustainable development.

For his part, Ahmed Ali Al Ebrahim said the project is one of the largest expansion initiatives in the authority’s history, designed to meet rising electricity demand, support renewable energy integration, enhance emergency readiness and increase electricity exchange capacity among GCC states.

He confirmed that the project will deliver substantial operational and economic benefits and strengthen the reliability of Gulf electricity networks during the transition to renewable energy. 

Fahad Hamad Al Sulaiti said the financing reflects the Fund’s commitment to supporting strategic energy infrastructure projects that strengthen regional integration and promote sustainable economic and social development.