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The Gulf Cooperation Council Interconnection Authority (GCCIA) has announced the start of construction of a $700 million direct power interconnection between Oman and the GCC regional electricity network (GCCIA grid).
The cross-border project will deliver transmission capacity of up to 1,200 megawatts (MW), enabling large-scale power exchange between Oman and rest of the GCC states.
The development builds on the existing 220kV interconnector between Oman and the GCCIA network, which has been operational since November 2011. That link connects Oman’s Mahadha (Al Wasit) grid station to Al Oha in Al Ain, UAE, and currently allows power exchange of up to 400MW.
Once the new 400kV direct interconnection is completed, total transfer capacity between Oman and the GCC grid is expected to rise to around 1,600MW.
Key components of the direct link project include construction of two 400 kilovolt (kV) overhead transmission lines between Ibri (Oman) and Al Silaa (UAE) extending for 530 kilometres, development of two main 400kV substations in Ibri and Al Baynunah, and installation of a STATCOM dynamic compensator station to enhance grid stability and increase transfer capacity.
The project is financed with $100 million provided by Qatar Fund for Development ($100 million) and $500 million provided Oman's Sohar International Bank.
According to Oman Electricity Transmission Company's (OETC) 5 Year Annual Transmission Capability Statement 2025-2029, the direct interconnection project will link its Ibri IPP 400kV grid station and GCCIA's new 400kV grid station in the Ibri area, which will be connected with the existing GCCIA-owned Silaa 400kV substation in the UAE and another new 400kV substation in the UAE.
In November 2025, GCCIA awarded the contracts (construction and consultancy) for the project to France’s Cegelec and EDF for substations and technical consultancy respectively; Serbia’s Energoprojekt Entel for engineering consultancy services; India’s Kalpataru Projects International and KEC International for construction of transmission lines, and Oman's Oman National Engineering and Investment Company (ONEIC) and Zawawi Powertech Engineering for civil works.
Linking Iraq and GCC grids
Last month, GCCIA signed an 8 million Kuwaiti dinars ($26 million) loan agreement with Kuwait Fund for Development (KFAED) for the Gulf Electricity Interconnection System Enhancement project.
The Gulf Electricity Interconnection System Enhancement Project includes a new substation in Kuwait’s Al Wafra area, which has already entered operationl a 400-kV double-circuit overhead transmission line spanning about 255-km between Al Wafra and Saudi Arabia’s Al Fadhili substation, and a 400kV interconnection with Iraq. The project is expected to be fully commissioned by the end of the first quarter of 2026, with electricity exports to Iraq anticipated to start during the summer of 2026.
(Writing by Dennis Daniel; Editing by Anoop Menon)
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