Muscat: The Gulf Cooperation Council Interconnection Authority has announced a comprehensive plan to boost the capacity for electrical power transmission between GCC states, following extensive technical and economic feasibility studies that align with its long-term strategic vision.

At the centre of this expansion is the direct interconnection between the GCCIA network and Oman’s power grid, a strategic initiative designed to elevate regional energy reliability, accelerate integration, and support the GCC’s sustainable development goals.

The project includes the construction of a double-circuit 400 kV transmission line stretching 530 kilometres, linking the Al Sila substation in the UAE to a new Ibri substation in Oman. Two new 400 kV substations, one in Ibri and another in Al Baynunah, will be developed with advanced control, protection, and communication systems to ensure maximum safety and efficiency.

A dynamic compensating station will also be installed to improve grid stability, ultimately delivering a transmission capacity of up to 1,600 megawatts. Construction is set to begin in Q4 2025, with full operations expected by end-2027.

The Authority highlights wide-ranging benefits, including reduced investment needs for new power plants, lower operating and fuel costs, and improved capability for power exchange between Oman and other GCC states. Increasing grid flexibility and stability is also expected to significantly cut carbon emissions, advancing the region’s environmental and clean-energy commitments.

Describing the expansion as a “new qualitative leap” in Gulf electrical integration, the Authority noted that the project strengthens energy security, enhances national grid performance, and opens the door to wider electricity trade.

To finance the initiative, the GCCIA signed two major agreements: a US$100 million facility from the Qatar Fund for Development, and a US$500 million phased financing agreement with Bank Sohar International. Officials say these partnerships reflect the enduring unity and shared development vision of GCC leadership.

His Excellency Mohsen bin Hamad Al Hadrami, Undersecretary of the Ministry of Energy and Minerals and Chairman of the GCCIA Board, called the contracts a historic milestone, reaffirming the region’s commitment to a secure, interconnected, and sustainable energy future. He noted that the project bolsters long-term economic development, enables greater reliance on clean energy, and strengthens the Gulf’s readiness for rising operational and environmental challenges.

His Excellency Eng. Abdullah bin Dhiyab, President of “Kahramaa” and GCCIA Board Member, emphasized that the tendering process adhered to the highest standards of governance and transparency, selecting only the most technically capable partners.

Meanwhile, GCCIA CEO Eng. Ahmed Al-Ibrahim underlined that the project will reduce the need for costly traditional power plants and accelerate the region’s shift toward clean energy. He described the expansion as a qualitative leap in establishing an integrated, flexible, and future-ready Gulf energy ecosystem that supports sustained economic growth.