Kuwait has recently signed a contract to purchase 500 megawatts of electricity from the Gulf Cooperation Council countries through the Electricity Interconnection Authority for the Gulf Cooperation Council countries. The contract includes buying 300 megawatts from Oman and 200 megawatts from Qatar. This energy purchase is expected to bring technical and economic benefits to Kuwait, as the energy purchase prices align closely with the cost of production after conducting necessary studies.
The Gulf electrical market allows for trading electrical energy through bilateral deals as well as through electronic platforms, enabling member states to submit competitive offers in quantities and prices. Deals are concluded through the Gulf Electricity Interconnection Authority’s platform, which manages the traded energy and financial settlements between traders.
Haitham Al-Ali, Acting Undersecretary of Kuwait’s Ministry of Electricity, explained that this contract is directly with the Gulf Interconnection Authority, which deals with Oman and Qatar in coordination with Kuwait. Engineer Ahmed Al-Ibrahim, CEO of Gulf Electricity Interconnection Authority stated that exploiting the Gulf electrical interconnection network for energy trading between countries is a key goal of the Gulf countries’ investment in this Authority. The State of Kuwait owns about 26% of this network as a second-largest shareholder, and electricity trading maximizes economic benefits and savings for interconnected countries. This strategy allows for flexibility in meeting energy demands and ensures efficient energy trading among member states.
