Gulf oil producers and other Arab countries are investing over $2bn in projects to link their electricity networks for stable power supplies and to reduce operational costs.
About 60% of the funds are from six Gulf Cooperation Council (GCC) countries, which are promoting the most ambitious and expensive common power grid in the region, according to a study by the Arab Fund for Economic and Social Development (AFESD).
Other Arab nations are also planning to connect their electricity networks and all projects in the region by end of 2015, according to Emirates 24/7 citing AFESD.
Investments are being made amounting to $229m for the Egypt-Jordan grid, $144m for the Syrian-Jordanian grid, $101m for the Syrian-Turkish link, $99m for Morocco’s connection with Spain’s network, $86m for the common grid between southern and northern Yemen and about $49m for the Egyptian-Libyan network.
The remaining investments cover joint networks between Syria and Lebanon as well as Libya and Tunisia.
Power supplies will be shared proportionately by the six GCC members with the UAE receiving about 900MW, while supplies will be 1,200MW for Saudi Arabia, 400MW for Oman, 750MW for Qatar and 1,200MW for Kuwait.