GCC Power Interconnection Expansion Benefits Kuwait

The Kuwait Fund for Arab Economic Development has announced that the expansion of the GCC Power Interconnection Project, launched in December 2022, constitutes a strategic milestone in advancing energy integration across the GCC. By enhancing electricity exchange efficiency and ensuring long-term sustainability, the initiative stands as a pivotal investment in the region’s clean energy future, it said.

Acting Director General of the Kuwait Fund for Arab Economic Development, Waleed Al‑Bahar, reiterated that Kuwait remains the primary economic beneficiary of the project. The new Al‑Wafra 400 kV Station will augment Kuwait’s national grid capacity by approximately 2,500 megawatts, fortifying supply during peak demand and enhancing grid stability. Financing is delivered via two loans from the Kuwait Fund to the GCC Interconnection Authority, totalling KWD70 million (~US$224 million).

Crucially, the Al‑Wafra station and its link to Saudi Arabia are on track for completion by December 2024, enabling Kuwait to significantly advance energy resilience and regional connectivity. The Kuwait–Iraq interconnection (Al‑Wafra–Al‑Faw) is expected to be operational by May 2025, supporting expanded network capacity and cross-border energy exchange. The project is slated to begin operations by the end of 2024, with full readiness across the GCC–Iraq axis anticipated by 2026.

Al-Bahar further emphasised that the project underpins environmental goals by facilitating clean energy distribution and enabling electricity trade within the GCC and neighbouring regions, leveraging surplus capacity to generate long-term economic returns while reducing emissions.

Kuwait’s involvement in the southern Iraq expansion positions the nation as a central hub for regional electricity trade, reinforcing ambitions around energy security, efficiency, and resilience, while reaffirming its leadership in regional energy integration strategy.