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GCCIA evaluates Oman-UAE grid link bids

27 January 2025

The GCC Interconnection Authority (GCCIA) is understood to be evaluating bids that it has received for a contract to build a direct interconnection between Oman's national transmission network and the regional electricity grid.

MEED reported in May 2023 that design work was under way for Oman’s second GCCIA link.

Oman Electricity Transmission Company (OETC), in its five-year capability statement published last year, said the GCCIA has agreed to construct the project.

"The new link will enhance system reliability and resiliency by increasing the total transfer capability up to 1,600MW between the Oman and GCCIA networks," OETC said.

The new direct interconnection comprises a 528-kilometre (km), 400-kilovolt (kV) double circuit overhead line between the existing Ibri independent power producer (IPP) 400kV grid station in Oman and the 400kV grid station in Al-SIlaa in the UAE.

MEED understands that the project includes two intermediate substations: one near Madinat Zayed in the UAE and the other adjacent to the Ibri substation in Oman.

Local contractor Bahwan Engineering Company is understood to be among the firms that have submitted proposals for the contract, which is valued at an estimated $1bn.

OETC said the principal technical benefits of connecting Oman directly to the GCCIA grid include the integration of spinning reserve requirements and the optimisation of generation dispatch. It also encourages renewable energy development and reduces fuel gas or diesel use by power generation and generation capacity requirements.

OETC noted that power exchange between Oman and its existing interconnection to the GCCIA amounted to 93,029.56 megawatt-hours (MWh) of exports and 85,089.46MWh of imports in 2023.

Oman’s first link with the GCCIA became operational in November 2011.

It comprises a 200kV line connecting the Mahadha grid station in Al-Wasit in Oman to the Al-Oha grid station in Al-Ain, UAE.

It is the third known project that aims to improve or expand linkages with the GCC grid. Projects are under way for interconnection with Kuwait, as well as with Iraq.

The GCCIA Al-Fadhili high-voltage direct current converter station in Saudi Arabia is undergoing a major upgrade, which will enable the GCC states to exchange up to 1,800MW of electricity daily using the grid.

OETC manages the grid in northern Oman and Dhofar at voltages of 400kV, 220kV and 132kV. One of the major OETC capital expenditure programmes is the execution of the first phase of the 400kV North-South Interconnector project.

In December 2020, Nama awarded State Grid Corporation of China the contract for the privatisation of OETC. Nama divested 49% of its shares in OETC to State Grid, which raised $1bn in capital.

Photo credit: OETC

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Jennifer Aguinaldo

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