The GCC Interconnection Authority plans to pour more than USD 3.5 bn over the next decade into strengthening its regional interconnection power grid, boosting its capacity to integrate renewables and export electricity to neighboring countries, Reuters reports, citing CEO Ahmed Al Ibrahim. The authority will self-finance the program and recover costs through annual fees paid by member states.

The first cross-border connection outside the Gulf will link the GCC grid to Iraq, with electricity exports set to begin in April 2026, Al Ibrahim said. Talks with Baghdad are ongoing to finalize the export framework. The project, valued at more than USD 300 mn, was fully financed by the authority without a margin, with cost recovery expected within seven years through transmission tariffs.

REFRESHER- Iraq’s tie-up to the GCC interconnection power grid was set to be operational in December of last year.

Also in the pipeline: Expansion plans will later include Jordan, and potentially Syria, Al Ibrahim noted. Gulf countries are also in talks to connect Middle Eastern grids to the European network by exporting electricity to Egypt via the Saudi-Egypt interconnection, with Egypt then set to have a 2 GW EuroAfrica Interconnector linking its grid with Greece and Cyprus, he said.

The focus remains on reinforcing internal grids, particularly as Saudi Arabia and the UAE roll out large-scale data center and AI projects that will increase power demand. Such projects will place added pressure on domestic grids due to their high and volatile electricity consumption, Al Ibrahim said, adding that stronger interconnection will be key to stabilizing supply and balancing loads across the region.

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