Sheikh Mohammed Bin Rashid inaugurates second phase of GCC Grid Interconnection project

On a step to establish an electric energy market in the GCC, at a cost of AED 5 billion

Abu Dhabi, 20 April 2011: His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, has inaugurated the second phase of the GCC Grid Interconnection Project, at a total cost of over AED 5 billion including UAE's contribution of about AED 800 million. During the inauguration ceremony, His Highness Sheikh Mohammed said that the strategic and economic integration of the GCC region is the key to the well being and promising future of its citizens; it also represents the shared vision of GCC leaders.

The project aims to connect the electricity grids in GCC countries to one another. This would provide a platform for energy trade and exchange, while improving the reliability of existing energy systems and lowering electricity reserve requirements on GCC countries.

In addition, His Highness Sheikh Mohammed said that the joint project sends out a clear message to all GCC nationals as to the serious commitment of all GCC countries to joint GCC projects, while highlighting the positive outcomes of such projects on everybody in the region. After all, the project will save up to AED 18.4 (approximately $ 5 billion) and will lay the foundation for a common energy market among the GCC countries. The project will also enable the achievement of a major strategic goal, which is providing GCC countries with sustainable energy supplies to support the national economies and drive sustainable development in the GCC region.

GCC energy ministers and board members of the GCC Interconnection Authority (GCCIA) attended the inauguration ceremony. GCCIA will undertake implementation of the project as well as maintenance and network operation, while playing a key role in energy trade in the region.

In his speech at the ceremony, engineer Essa Al-Kawari, Chairman of GCCIA, praised the UAE's role in the project. He also praised the joint vision of GCC leaders in bringing this project to reality.

Al-Kawari presented an overview of the different stages of the project, which included extending electrical lines above the ground, along with an underwater cable in the Arabian Gulf. The network has been also used to extend fiber optic lines in order to strengthen the IT and networks infrastructure in the GCC countries and provide investment opportunities for companies operating in the telecommunications sector.

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For more information:
Hassan Al Alkeem
Ministry of Energy
Telephone: +971 50 4441988

Ali Bakheet
GCC Interconnection Authority
Telephone: +971 50 4401785