Interconnection vital to GCC energy future
6 November 2024
Commentary
Jennifer Aguinaldo
Energy & technology editor
On 31 October, Riyadh-headquartered Alfanar Projects confirmed winning contracts worth SR20bn ($5.3bn) from Saudi Electricity Company (SEC) to implement a high-voltage direct current (HVDC) project in Saudi Arabia in partnership with China Energy Equipment Group.
The work entails installing and deploying HVDC converter stations and an overhead transmission line with a capacity of 7,000MW, which will connect Saudi Arabia’s central, western and southern regions.
The project is potentially the largest HVDC network to be built in the GCC region and one of the largest globally, exceeded mainly by several transmission links in mainland China and India.
Compared to existing alternating current (AC) transmission, HVDC is seen as more environment-friendly as it allows electricity transmission over long distances with minimal losses.
It addresses the efficiency requirements of utilities, particularly with the increased generation of renewable energy through wind and solar PV plants that are typically located away from electricity demand centres.
In addition to efficiency, interconnections via HVDCs will offer grid stability and resilience across the GCC states and their neighbouring countries as they look for ways to shift supply to meet peak demand and avoid curtailment barring viable energy storage options.
Several HVDC networks are under construction across the GCC states. The region’s first subsea power transmission network in Abu Dhabi is under construction. It replaces existing offshore gas turbine generators catering to Adnoc’s offshore operations with more sustainable power sources available in Abu Dhabi’s onshore power network.
The Saudi-Egypt interconnection is also underway. Once completed, it will eventually enable the daily exchange of up to 3,000MW of electricity at peak times, opening up potential energy trade between the GCC and other countries in the Gulf, Africa and Europe.
Given the GCC region’s massive generation capacity buildout – an estimated 49,000MW of renewable and gas-fired capacity was under construction as of October this year – the importance of interconnecting grids within and across jurisdictions can only grow.
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