Grid lines

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With the complex phase I of the GCC interconnection project less than 12 months from completion, Utilities Middle East takes an in-depth look at the project so far.

The idea of connecting the electrical grids of GCC member countries was first considered more than 20 years ago.

A preliminary feasibility study in 1990 showed that a unified grid would bring significant cost savings and improve the reliability of power supplies across the region, as well as helping utilities to keep pace with rising demand for electricity.

It recommended that a body be set up to oversee the project.

However, it was not until 29 July 2001 that the Gulf Cooperation Council Interconnection Authority (GCCIA) was officially established and the finer details and financing for the power network began to be mapped out.

The decision was taken to implement the project in three phases. Phase I would join the systems of Kuwait, Saudi Arabia, Bahrain and Qatar.

Phase II would see the internal interconnection of the UAE and Oman to form the UAE National Grid and the Oman Northern Grid. Under phase III, a line would be run between Saudi Arabia and the UAE, thereby connecting the first two phases, while another would link the UAE and Oman.

The estimated cost of the project, based on the economic conditions in 2003, was: US $1 189 million for phase I; US $300 million for phase II; and US $137 million for phase III.

The GCCIA calculated that the payback period for an investment of around US $1 billion would be less than four years.

With annual electricity consumption in the GCC forecast to jump from 32 GW in 2003 to 94 GW by 2028, the GCCIA estimated that the interconnected grid would save US $3.5 billion worth of capital expenditure on building new capacity to meet this demand.

Phase I in detail

A second study was carried out in 2003 by SNC Lavalin, which plotted the best route for the interconnecting cables. Interested parties were then invited to submit pre-qualifying bids to work on the phase I project.

Some 91 companies and consortia requested pre-qualification forms and 63 were subsequently submitted.

In the first quarter of 2004, 45 parties were pre-qualified to enter bids for the various contracts. Tender documents were then issued in February 2005.

Deals inked

The winners of the tenders were announced in November 2005.

ABB won a US $222 million order to supply and install six 400 kV gas-insulated substations, including switchgear, circuit breakers, transformers and shunt reactors.

A Prysmian/Nexans consortium was awarded a US $343 million contract to install the submarine cables and land cables that would link Bahrain to Saudi Arabia.

The submarine route spans 42 km and comprises six single phase cables, while the underground section stretches across 7 km. The combined weight of the cables required was said to be more than 12 000 tonnes.

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