ADFD And GCCIA Finalise AED 752 Million Agreement To Strengthen GCC Power Grid Connectivity With UAE

The Abu Dhabi Fund for Development (ADFD) has partnered with the Gulf Cooperation Council Interconnection Authority (GCCIA) to enhance the GCC power grid's connection with the UAE's national grid. This AED752 million (US$205 million) agreement is set to bolster regional energy security and facilitate power exchange among GCC member states.

The agreement was formalised at ADFD's headquarters in Abu Dhabi. Mohammed Saif Al Suwaidi, Director-General of ADFD, and Eng. Ahmed Ali Al Ebrahim, CEO of GCCIA, signed the deal. The event was attended by Eng. Sharif Salim Al Olama from the UAE Ministry of Energy and Infrastructure and Dr. Saif Saeed Al Qubaisi from Abu Dhabi Department of Energy, along with other officials.

This initiative aims to enhance connectivity between the UAE and the GCC power grid, promoting regional energy resilience and economic integration. It aligns with the UAE Energy Strategy 2050, which seeks to create an efficient and sustainable energy system that supports long-term economic growth.

The project involves constructing a 400kV double-circuit overhead transmission line spanning 96 kilometres. This line will link the Al Silaa substation in the UAE with Saudi Arabia's Salwa substation. Additionally, it includes expanding substations in Gonan, Al Silaa, and Salwa, alongside upgrading switchgears, circuit breakers, and reactors.

Advanced protection and control systems will be developed as part of this project to improve grid efficiency and reliability. These enhancements are based on comprehensive technical and economic feasibility studies that align with GCCIA’s vision for a robust regional power infrastructure.

Al Suwaidi stated that this project demonstrates ADFD’s dedication to financing impactful infrastructure supporting UAE's development goals. He noted that power grid interconnection is crucial for energy security and transitioning to sustainable energy sources.

Strategic Partnerships

Al Ebrahim highlighted that this project marks the first phase of their collaboration with ADFD during the current expansion of the GCC power grid. He mentioned ongoing initiatives with Kuwait, Oman, and southern Iraq as part of a broader investment exceeding US$1 billion.

He further explained that increasing transmission capacity aims to establish a unified Gulf electricity market for cross-border power trade. This market is expected to generate significant economic value, with opportunities projected to exceed US$20 billion over 15 years.

The project serves as a practical example of regional energy integration by improving grid efficiency, emergency preparedness, connectivity with partners, and promoting renewable energy integration into a unified network. This effort reinforces GCC’s commitment to sustainability goals and emissions reduction targets.

With inputs from WAM