The GCC Interconnection Authority (GCCIA) has entered into a $500 million interim financing agreement with Sohar International Bank to advance the development of a direct electricity interconnection project, integrating the Authority’s grid with the Sultanate of Oman’s power network.
The project aims to enhance regional energy security and increase opportunities for electricity trade and exchange among the Gulf Cooperation Council member states, in a strategic step that reflects the depth of Gulf integration.
The project entails the construction of a state-of-the-art 400-kilovolt double-circuit transmission line designed to significantly strengthen cross-border electricity connectivity in the Gulf region.
This vital infrastructure will link the Al-Sila station, currently operated by the GCC Interconnection Authority (GCCIA) in the UAE, with the new Ibri station that is being developed by the Authority in Oman. Spanning a total distance of approximately 530 kilometers, the transmission line represents a major investment in regional power integration and energy security.
With a planned transfer capacity of 1,600 MW, the project is expected to enhance grid reliability, facilitate energy trade between the two countries, and provide a more stable and efficient supply of electricity. Beyond meeting growing domestic demand, the new interconnection will also play a strategic role in enabling renewable energy integration and supporting the long-term sustainability goals of both Oman and the UAE.
By creating a robust link within the GCC power grid, the GCCIA initiative underscores the region’s commitment to shared energy infrastructure, economic cooperation, and the pursuit of cleaner, more resilient power systems.
Eng. Mohsen bin Hamad Al-Hadhrami, Chairman of the Board of Directors of GCCIA, said that the project represents a qualitative leap in the path of integrating electricity networks among the GCC states, noting that it will strengthen the Sultanate of Oman’s position as a pivotal hub for energy exchange in the region.
