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DUBAI: Aiming to step up power safety and usher in a brand new period in regional cooperation, Prince Saud bin Nayef bin Abdulaziz, the governor of the Jap Province, inaugurated {an electrical} interconnection undertaking between the Gulf Cooperation Council Interconnection Authority and Iraq.

Saudi Arabia’s Power Minister Prince Abdulaziz bin Salman mentioned the connection was a dream turned actuality, in an interview with Al-Arabiya. He mentioned this landmark deal may obtain tangible financial advantages and improve power safety.

The announcement was made throughout a ceremony in Dammam that was witnessed by Prince Abdulaziz, Prince Saud and Eng. Ziyad Ali Fadel, the Iraqi minister of electrical energy, in addition to quite a lot of Gulf Arab ministers of electrical energy, Gulf ambassadors to the Kingdom and a number of other officers from each the Gulf and Iraq.

The facility grid interconnection undertaking with Iraq entails the implementation of a dual-circuit transmission line connecting the northern metropolis of Afar in Saudi Arabia to Yusufiya in western Baghdad and can provide an preliminary capability of 1,000 megawatts and increase its functionality to answer the rising electrical energy calls for of the Iraqi inhabitants in future years.

“The launch of the Iraq electrical interconnection undertaking has thrown open plentiful prosperity in addition to in depth benefits to your entire area,” mentioned Prince Saud throughout the launch of the historic undertaking. “Moreover, this undertaking serves as a catalyst for a brand new period, ushering in broader horizons and increasing market alternatives.”

The GCCIA goals to start exporting electrical energy to southern Iraq by finish of 2024. The undertaking intends to assist the Iraqi electrical grid and improve power safety.

“This settlement holds nice significance for Iraq because it marks a serious turning level,” Ali Jasim Mohammed Al-Mitiwiti, Iraqi politician and a former parliament member, advised Arab Information.

The launch of the Iraq electrical interconnection undertaking has thrown open plentiful prosperity in addition to in depth benefits to your entire area.

Prince Saud bin Nayef bin Abdulaziz, governor of the Jap Province

He added: “As an alternative of a rustic monopolizing Iraq, together with the electrical energy sector, which has brought on important hardship for Iraqi residents, this settlement will contribute to the long-term enchancment of the electrical energy community in southern Iraq.”

“This undertaking,” continued Al-Mitiwiti, “goals to assist the rising demand for electrical energy in Basra Governorate by means of cooperation with the Cooperation Council for the Arab States of the Gulf. Moreover, it lays the muse for future alternate and commerce {of electrical} power between the international locations of the Cooperation Council and Iraq inside a regional and Arab marketplace for electrical energy.”

The settlement for the undertaking was signed by the GCCIA and Iraq on the sidelines of the Jeddah Summit for Safety and Improvement in July 2022, whereas the framework settlement was sealed between the Iraqi Ministry of Electrical energy and GCCIA in 2019 for the institution of the undertaking.

The interconnection undertaking marks the primary to be applied exterior {the electrical} grid system of the GCC international locations. It intends to fulfill a number of the demand for electrical energy in southern Iraq.

The undertaking necessitates the implementation of a 400 Kilovolt dual-circuit transmission line connecting the Al-Zour Substation, passing by means of the 400 kV Al-Wafrah unit and reaching the Al-Faw Substation, working 322 km lengthy.

The anticipated capability to be imported by means of this initiative is estimated at roughly 500 megawatts, which can cater to the electrical energy necessities of the Basra governorate, in keeping with the assertion from GCCIA.

Al-Mitiwiti underlined that the settlement “will make sure the sustainable provide {of electrical} power always and contribute to reaching one of many sustainable growth targets in Iraq and the area in the long run.”

“Since its institution in 2009, when the Kingdom embraced it, the undertaking has constantly demonstrated its impression yr after yr, producing quite a few financial benefits for the GCC international locations,” added Prince Saud. “Notably, it has considerably lowered each the capital and operational bills related to the Gulf electrical energy community.”

Prince Saud underlined that the undertaking had furnished round one half of the general required power reserves within the international locations previous to the finalization of {the electrical} interconnection.

“Moreover, it has established reliable, sustainable, and aggressive electrical energy transmission companies, yielding a constructive affect in supporting and streamlining all developmental endeavors within the area,” he added.

The undertaking permits the creation of a GCC-augmented electrical energy market and electrical energy buying and selling throughout borders. KSA, the UAE and different GCC international locations are closely investing in renewable power.

Nasser Saidi, Lebanon’s former economic system and commerce minister

Crucially, the settlement underscores a part of what Nasser Saidi, Lebanon’s former economic system and commerce minister and founding father of Nasser Saidi & Associates, calls “the regionalized globalization by the GCC.

“Built-in electrical energy grids, similar to between Saudi and Iraq, end in larger energy effectivity, improved administration of electrical energy grids and community economies, reducing prices for all of the international locations concerned,” he advised Arab Information.

“It permits the creation of a GCC-augmented electrical energy market and electrical energy buying and selling throughout borders. In parallel, Saudi, the UAE and different GCC international locations are closely investing in renewable power (primarily photo voltaic) for his or her energy technology,” he mentioned.

“Ultimately, the GCC can export solar-based electrical energy inexperienced power to not solely neighboring international locations (Iraq, Jordan, Egypt and Yemen) but additionally to India and throughout North Africa into Europe. Already, a GCC-India undersea electrical energy connector is deliberate. A brand new power infrastructure map is rising.” 

There additionally, mentioned Saidi, wider potentialities and imaginative and prescient for the settlement which have the potential as acknowledged by Prince Saud and Al-Mitiwiti to garner larger power safety and financial advantages for the area.

“The combination of primary infrastructure — water, electrical energy, transport and logistics (ports and airports) — is a serious constructing block of larger financial integration between the GCC and its regional companions, enabling the deepening of regional commerce and funding hyperlinks,” Saidi defined. 

He added: “Infrastructure integration fosters financial growth. It creates jobs in international locations similar to Iraq, Jordan, Egypt, Lebanon and Syria which have historically been reliant on exporting labor, serving to them fight the current mind drain.”

Furthermore, as Saidi pressured, the larger integration of those international locations with the GCC allows companions to take part in world worth chains by means of the area, producing increased worth exports (moderately than low-value commodity exports similar to phosphates) and diversify their economies.

All of that is happening throughout a time of nice change for world power markets.

“The GCC international locations at the moment are pursuing an lively worldwide commerce and funding technique resulting in ‘regionalized globalization’, at a time when the remainder of the worldwide economic system is fragmenting and there’s tried US, EU and allies decoupling from China,” he added. “Strategically, regionalized globalization can result in larger geopolitical stability.”