1. Mohamed Al-Shaikh, BSc MSc CEng MIET Manager, Maintenance - GCCIA
GCC Interconnection Authority
The GCC Interconnection Grid
7th Power Transmission and Distribution Forum
Kingdom of Bahrain
Mohamed Al-Shaikh, BSc MSc CEng MIET
Manager, Maintenance - GCCIA
28-30 October 2007

2. LEGAL AND ORGANIZATIONAL DEVELOPMENT
GCC Interconnection Authority
OVERVIEW
INTRODUCTION
PROJECT DESCRIPTION
PROJECT STATUS
LEGAL AND ORGANIZATIONAL DEVELOPMENT
PROSPECTS
CONCLUSIONS

3. Supply has to increase to match the anticipated demand.
Interconnection Rationale
Power Demand in GCC Countries is anticipated to increase from 32 GW in 2003 to 94 GW in 2028.
Supply has to increase to match the anticipated demand.
Considerable investment is required to build new generating capacities .
The two common strategies: build capacities independently or interconnect individual systems.
Economic analysis of the interconnection indicated a cost / benefit ration )all six countries (
Reduces investment for power reserves by 3.5 billion US $ ( ) for the same reliability.

4. Benefits of the Interconnection
Reduce generating capacity required in each system due to ability to share power reserves
Share spinning reserves to cover emergency operating conditions
Lower operating costs by using most economic generation unit in the interconnected system
Improve the overall system reliability
Provide emergency support to any system during black out situations
Provide means for energy trading

5. Sharing of the Costs of the Interconnection
Phase I (%)
Phases I &III (%)
Kuwait
33.8
26.7
Saudi Arabia (ERB)
40.0
31.6
Bahrain
11.4
9.0
Qatar
14.8
11.7
UAE
15.4
Oman
5.6
TOTAL
100.0

6. PROJECT DESCRIPTION

7. Geographical Map
Substations
HVDC Converter
Control Center

8. Single-Line Block Diagram
KUWAIT
AL ZOUR 400 kV
1200 MW
BAHRAIN
310 km
AL FADHILI 400 kV
SAUDI ARABIA
SEC – ERB
HDVC
BACK-TO-BACK
112 km
90 km
JASRA 400 kV
600 MW
1200 MW
100 km
290 km
GHUNAN 400 kV
QATAR
DOHA SOUTH SUPER 400 kV
SALWA 400 kV
150 km
900 MW
750 MW
UAE
SHUWAIHAT
400 kV
EMIRATE NATIONAL GRID
400 MW
OMAN
OMAN NORTHERN GRID
52 km
AL WASEET 220 kV
AL OUHAH 220 kV

9. Contract Prices Contract Price Substations $221,983,888 HVDC BtB Conv.
$205,896,785
Transmission Lines
$280,400,717
Cables
$343,122,125
Control Center
$27,637,220
Consultancy
$16,283,146
TOTAL
$ 1,095,323,881

10. PROJECT STATUS

11. Al-Zour / Al-Fadhili T/L Al-Fadhili / Ghunan T/L
Project Progress
Contract No.
Contract
Actual Percentage (%)
112-A1
Al-Zour S/S
74.33
112-A6
Al-Jasra S/S
66.16
112-A7
Doha South S/S
81.08
112-A2
Al-Fadhili S/S
93.42
112-A4
Ghunan & R.A.Q. S/S
41.74
112-A5
Salwa S/S
74.4
113-A3
Al-Fadhili B2B
51.84
114-B1
Al-Zour / Al-Fadhili T/L
41.06
114-B4
Salwa / Doha South T/L
50.98
114-B2
Al-Fadhili / Ghunan T/L
81.62
114-B3
R.A.Q. / Ghunan / Salwa T/L
28.14
115-B5
Land & Submarine Cable
10.66
116-C
Control Systems
64.09
Overall Progress
41.34

12. Project Status
Completed the Submarine Cable Route Survey between Kingdoms of Bahrain and Saudi Arabia
Geo-Technical study of the Land Cable in the Kingdom of Bahrain
Final stages of the engineering work

13. Submarine Cable Route

14. Project Status Foundation work is in progress Al Jasra Doha South
Final stages of the engineering work

15. Project Status
Al-Fadhili Converter No. 2 & 3 – Control Building & Valve Hall constructions in progress
Final stages of the engineering work

16. Project Status Salwa to Doha South – Tower Auguring of Foundation
Al-Zour to Al-Fadhili – Hoisting of Insulators String
Salwa to Doha South – Tower Auguring of Foundation
Final stages of the engineering work

17. Project Status ICC – Reinforcement of Bar for Roof Beams & Slab
Construction of the roof of the ICC building is in-progress
ICC – Reinforcement of Bar for Roof Beams & Slab
Final stages of the engineering work

18. LEGAL & ORGANIZATIONAL
DEVELOPMENTS

19. The Legal Structure / Framework for GCCIA
Legal Framework
Organizational Framework
GCC Ministerial
Committee
General
Agreement
E & W Ministerial
Committee Level
Regulatory Advisory
Committee
General Assembly
& Board Level
Articles / Bylaws
GCCIA
Board of Directors
Planning
Committee
Operating
Committee
PETA
GCC Utilities Level
GCCIA - CEO
Transmission
& Metering Codes

20. Legal Agreements
General
Agreement
(GA)
Interconnector Transmission Code (ITC)
Power Exchange & Trading Agreement (PETA)
High level agreement between the Member States setting out the rules and regulations in respect of the inteconnector as well as defining the Regulatory Committee and the regulatory principles.
Agreement between the Trading parties setting out the technical provisions which the Authority, the TSO Parties and the Procurement Parties will observe when operating and using the Interconnector .
Agreement between the Trading parties setting out obligations in respect of installed capacities and operating reserves as well as Terms applicable to connection, use of interconnector, and Trading.

21. PROSPECTS

22. Development of the Electricity Market
Provide a Wheeling Services to the power sectors in the GCC countries
Becomes a ‘Launch-Pad’ for Energy Trading
Provide access to the Electricity Market in the region and beyond

23. Opportunities for the GCC Electricity Market
UCTE
East
EJLIST
Arab Maghreb
GCC

24. Opportunities for the Authority
Utilize the OPGW fiber optic excess capacity
Authority may lease out fibers
Market is being explored

25. The work progress shows about 41 % accomplishment as on September 2007
Conclusions
The Interconnector will provide economic benefits and support in emergency situations
The Interconnector’s connection points rated equivalent to the loss of 50% of the largest power plant for each country
The work progress shows about 41 % accomplishment as on September 2007
The Interconnector’s legal and organisational frame work is in the process of being finalised
The GCC Grid will be a fundamental step that can lead to a regional electricity market
The Interconnector Provides an opportunity for capitalizing in fiber optic excess capacity

26. Thank you