The Kuwait Fund for Development has said that it is financing a major expansion of the Gulf Cooperation Council’s electricity grid, a move aimed at deepening energy integration across the region and opening the door to wider clean power trade.
The project, launched in late 2022, includes the construction of the Al-Wafra substation in Kuwait, which will add about 2,500 megawatts of capacity to the national grid, easing pressure during peak demand and improving stability, the Fund said.
The Kuwait Fund is providing two loans worth 70 million Kuwaiti dinars ($224 million) to the GCC Interconnection Authority to support the development.
Acting Director General Waleed Shamlan Al-Bahar said Kuwait stands to be a primary beneficiary, with the grid expansion expected to enhance energy security, reduce carbon emissions and improve the flow of surplus power across GCC states.
The project also extends the grid into southern Iraq, positioning Kuwait as a potential hub for regional electricity trade. The move could help accelerate cross-border clean energy distribution, a priority for Gulf states as they diversify away from oil.
The technical scope includes the Al-Wafra 400 kV station and a network of double-circuit transmission lines linking Kuwait with Saudi Arabia and Iraq, alongside reinforcements to Kuwait’s internal power system.
The GCC grid, operational since 2009, was originally designed to provide backup capacity and enhance reliability. Its expansion comes as Gulf countries increase investment in renewables and seek to export electricity to neighbouring markets.
