Shafaq News/ On Wednesday, the Gulf Cooperation Council (GCC) countries signed a pivotal contract to implement a project that will connect the Gulf electricity market with Iraq.

The initiative aims to bolster energy security in the region and enable GCC countries to supply Iraq with approximately 3.94 terawatt hours of electricity annually. The prices are expected to be competitive, falling below the cost of local production, which could lead to significant reductions in public expenditure for Iraq.

The agreement was formalized at the headquarters of the GCC Interconnection Authority in Dammam, eastern Saudi Arabia, during an event attended by Saud bin Bandar bin Abdulaziz, the Deputy Emir of the Eastern Province. He inaugurated the updated control center systems for the interconnection network, designed to enhance the efficiency and flexibility of electricity systems in addressing current and future challenges.

Bin Abdulaziz highlighted the project’s potential to “ensure sustainable energy supply, promote local projects, and stabilize Iraq's electrical grid. This will reduce the country’s reliance on costly fossil fuels and improve the utilization of available resources.”

"This Gulf electricity interconnection project is a strategic initiative that strengthens economic and social cooperation among GCC countries and their neighbors," Bin Abdulaziz stated. "It has the full support of GCC leaders to achieve energy security and stability in the region."

The Deputy Emir also emphasized the importance of expanding the project's scope beyond merely ensuring energy flow. He noted that “initial steps have been taken through the signing of memorandums of understanding to explore the possibility of electrical interconnection with Iraq, Jordan, and Egypt. Actual operations are set to commence in early 2025 with Iraq.”