Kuwait commits $224m to GCC power grid expansion

19 August 2025

The Kuwait Fund for Arab Economic Development has extended two loans worth KD70m ($224m) to finance the expansion of the Gulf Power Interconnection Project.

The project is intended to strengthen regional energy integration, improve electricity exchange and support the shift to clean energy.

The new Al-Wafra 400kV station will augment Kuwait’s national grid capacity by approximately 2,500MW, stabilising regional supply, particularly during summer demand surges.

The GCC Interconnection Authority has also commenced construction of a 400kV, 295-kilometre transmission line connecting Kuwait’s Al-Wafra station to Iraq’s Al-Faw station. The first phase will export 500MW to Iraq, rising to 1,800MW over time.

Additionally, a 400kV double-circuit overhead transmission line will connect Al-Wafra with Al-Fadhili in Saudi Arabia.

Acting director general of the Kuwait Fund, Waleed Al-Bahar, said Kuwait will be the primary economic beneficiary, with surplus capacity from the project generating long-term economic returns.

The new Al-Wafra 400kV station will also connect internally to Kuwait’s grid through the Sabah Al-Ahmad “3Z” and “4Z” substations.

Full GCC–Iraq integration is expected to be completed by the end of 2026, with Kuwait’s involvement positioning the country as a crucial hub for regional electricity trade.

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Mark Dowdall
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