Haitham Al-Ali, Acting Undersecretary of the Kuwaiti Ministry of Electricity, said: “Kuwait has contracted to purchase 500 megawatts of electricity through the Electricity Interconnection Authority for the Gulf Cooperation Council countries.”
Al-Ali added that the contract includes purchasing 300 megawatts from the Sultanate of Oman and 200 megawatts from Qatar.
Al-Ali explained, “This purchase step brings technical and economic benefits to Kuwait, especially with the convergence of the offers submitted for energy purchase prices to the cost of its production, and this comes after conducting the necessary studies for that.”
Al-Ali told reporters: “The contract is with the Gulf Interconnection Authority directly, and they deal with Oman and Qatar in coordination with Kuwait.”
Concluding bilateral deals
For his part, Engineer Ahmed Al-Ibrahim, CEO of the Gulf Electricity Interconnection Authority, explained that “the Gulf electrical market for trading electrical energy is one of the effective markets in the region,” stressing that “the Gulf common electricity market allows for the conclusion of bilateral deals as well as through the electronic platform, which enables companies Member states are able to submit competitive offers in quantities and prices,” indicating that “deals are concluded through this platform affiliated with the Gulf Electricity Interconnection Authority, which will schedule the traded energy and financial settlements between traders.”
He said: “There has been agreement between the Ministry of Electricity, Water and Renewable Energy and the Gulf Interconnection Authority on the offers that were submitted to supply electrical energy to the State of Kuwait during the month of June, so that they can be renewed during the months of July and August, according to the conditions and needs of the interconnected networks of the member states.”
Al-Ibrahim said: “Exploiting the Gulf electrical interconnection network to exchange and trade energy between countries is one of the goals of the Gulf countries’ investment in the Authority and the Gulf electrical interconnection network, of which the State of Kuwait owns about 26% as the second largest shareholder, as electricity trade enables maximizing the economic benefits and savings of the interconnection.” Electricity for trading countries. (agencies)