08 February 2016

GCC states are looking at linking to power grids in Pakistan and Turkey.

A unified Gulf Arab electricity grid that currently serves as an emergency backup system could become an "electricity highway" that extends to the wider Middle East and Europe if Gulf states push ahead with ambitious renewable energy projects, industry experts said.

The unified grid was set up to share capacity in case of emergencies in Gulf Cooperation Council (GCC) countries - Kuwait, Saudi Arabia, the United Arab Emirates, Bahrain, Qatar and Oman - with each maintaining a minimal reserve level in the grid. All six countries came online by 2011.

The grid, which has a maximum transfer capacity of 1200 megawatt (MW), has seen minimal trade exchanges in the last few years, but large scale deployment of renewable energy sources would be a key driver for more intense use of the transmission grid, particularly for cross-border links.

"In the initial stage of renewable energy generation deployment in the Gulf countries, this backbone (GCC grid) shall serve as an 'electricity highway' for the domestic market. At a later stage, the grid should be suitably reinforced to avoid curtailment of excess generation," said Floris Schulze, managing director at technical consulting and engineering firm CESI Middle East.

 "On the eastern side, ideas have been put forward aimed at examining the possibility of connecting the Arabian Peninsula link with Pakistan, which is in desperate need for additional power supply, while feasibility for Turkey is being explored, paving the way towards Europe," he told Zawya.

CESI signed a three-year agreement with the GCC Interconnection Authority (GCCIA) in 2014 to provide system operations and planning studies, as well as feasibility studies for the development of an international transmission and interconnection network.

POWER CORRIDORS

The share of renewable energy accounted for less than 1 percent of the GCC's total installed generation capacity of 120 gigawatt (GW) at the end of 2014, but the region is targeting an increase in the share of renewables to 15-30 percent by 2030.

Schulze said competitive energy pricing structures and the geo-centric location of GCC states, which hold nearly a third of the world's proven crude oil reserves and about a fifth of natural gas reserves, could position the region as a power trading house for Europe, Africa and Asia.

He said a planned interconnection between Saudi Arabia and Egypt's power grids could open up opportunities for a possible extension towards Europe. 

Electricity demand in the Gulf region peaks in the summer months while there is surplus power during the rest of the year which can be exported.

"Foreseeing the growing demand of energy, we now aim to connect the whole Middle East with the possibility of connecting European countries with the Interconnectivity Grid," said Nasser Abdullah Al-Shahrani, director of operations and control at GCCIA.

"There are big savings to be made here in terms of capital investments, fuel costs and reducing the environment impact to generate power," he told Zawya.

The authority estimates operational and fuel efficiency savings across the system at more than USD 300 million for GCC states based on feasibility estimates to 2028.

GCCIA sees potential in extending the grid to connect to other regional power pools such as EJILST (Egypt-Jordan-Iraq-Lebanon-Syria-Turkey), the Arab Maghreb (Libya, Tunis, Algeria, Morocco and Mauritania) and the European power grid UCTE.

RENEWABLES PUSH

Gulf Arab states have moved to diversify the region's energy mix to include renewables and other alternatives to meet rising domestic demand for electricity, increase energy efficiency and rationalize consumption.

Investment in new projects is on the rise, as seen by the recent investment in the UAE's Mohammed bin Rashid Al-Maktoum solar park and Kuwait's Shagaya wind turbine, solar thermal and PV projects.

"Shagaya is a pilot project in Kuwait aiming at 70 MW power by 2017 from renewables. This will help to save fuel costs across the GCC region," Suhaila Marafi, director of the department of studies and research at Kuwait's Ministry of Electricity and Water, told Zawya at a conference in Abu Dhabi last month.

A recent report by the International Renewable Energy Agency (IRENA) said that close to 60 percent of the GCC's surface area has significant potential for solar PV deployment and that the development of just 1 percent of this area could create almost 470 GW of additional power- generation capacity.

"Strong solar and wind resources, declining technology costs and the presence of an enabling policy environment are increasing the cost competitiveness of renewables, in particular for solar PV," the report said.

It said government commitment in the form of key policy and regulatory actions would be needed to catalyse investment in the sector and accelerate the pace of deployment.

© Zawya 2016