$952.5 million in savings from the GCC Interconnection Project

Over 16 Years... and the "Highest Record" in 2025

The annual report issued by the Gulf Cooperation Council (GCC) Interconnection Authority revealed unprecedented savings of $412 million in 2025. Since the project’s launch in 2009 through last year, cumulative savings reached $540.5 million, bringing the total savings achieved over the past 16 years to approximately $952.5 million.

The report, which Al-Siyasa reviewed, stated that these savings resulted primarily from reduced investments in power plant construction, lower operational and reserve operational costs, and economic benefits from avoiding scheduled outages during emergencies. Additionally, economic savings were achieved through energy trading based on economic principles. The report attributed the annual economic savings growth from the interconnection, and the unprecedented rise compared to previous years, to the increased volume of electricity trade among GCC states, which reached 5.8 terawatt-hours in 2025, thereby increasing savings from energy trade.

Cumulative Savings

The report compared cumulative economic savings with the cumulative project cost since the GCC interconnection began operations in 2009 through 2025. It showed that cumulative economic savings by the end of 2025 reached $5.22 billion, surpassing the cumulative project cost of $2.151 billion. Furthermore, cumulative economic savings exceeded the cumulative project cost since 2016. Consequently, the project’s economic viability was achieved starting in 2016, reflecting the success and growing benefits of regional cooperation in reducing operational costs, enhancing energy efficiency, and supporting the stability of electrical grids in GCC states.

Grid Stability

The report clarified that the GCC interconnection grid continued to play a vital role in enhancing the stability of Gulf grids in 2025. The grid demonstrated high levels of readiness and efficiency in handling various power support scenarios. Support requirements were successfully met in cases of generation loss or load issues. Since its inception through the end of 2025, the grid recorded a total of 3,008 support cases, including 172 support cases in 2025 for member state grids. This reflects the interconnection system’s ability to respond quickly and effectively to operational challenges, as well as its role in enhancing the stability and operational efficiency of Gulf grids.

Renewable Energy

The report indicated that the interconnection grid efficiently handled fluctuations caused by sudden increases or decreases in renewable energy production by providing necessary support to maintain the stability of the Gulf electrical system. A total of 265 support cases were recorded since 2023, with the interconnection grid successfully providing support in more than 69 cases during 2025. This demonstrates its high readiness and capacity to enhance the security and stability of electrical grids in the region. In line with strengthening this role, the Authority is currently developing an operational procedure to regulate the support mechanism during renewable energy fluctuations, ensuring a more efficient and coordinated response among Gulf grids. This enables all Gulf grids to benefit from interconnection capacities in addressing these challenges, amid the rapid expansion in diversifying energy sources and the use of renewable energy (wind, solar, etc.) in Gulf grids. The interconnection grid continues to play a vital role in supporting the stability and reliability of the Gulf electrical system. Since 2023, with the increasing reliance on these sources...