KUWAIT CITY, May 20: The Ministry of Electricity, Water and Renewable Energy has signed a significant contract to purchase 500 megawatts of electrical energy through the Gulf electrical interconnection network. This network, extending from the Sultanate of Oman to the State of Kuwait, will help cover the anticipated electricity shortages during the peak summer months. The energy import will commence in early June and continue until August 31.

Engineer Haitham Al-Ali, Acting Undersecretary of the Ministry, and Engineer Ahmed Al-Ibrahim, CEO of the Gulf Interconnection Authority formalized the contract. Al-Ali highlighted this agreement's technical and economic advantages for Kuwait, noting that the cost of the purchased energy is close to the cost of local production. This decision follows extensive studies to ensure feasibility and benefits.

Kuwait holds a 26.7 percent share in the founding stocks of the Gulf Cooperation Council Electricity Interconnection Authority, a joint-stock company established by GCC member states to connect their electricity networks. This initiative aims to secure energy supplies, promote investment, and achieve economic benefits through energy exchange and diversification.

Al-Ali emphasized that direct contracting with the Interconnection Authority supports electrical networks during emergencies, a practice familiar to member states.

Engineer Al-Ibrahim, CEO of the Gulf Electricity Interconnection Authority, explained that the Gulf Electricity Market facilitates effective regional electrical energy trading through an electronic platform. This platform manages the scheduling of traded energy and financial settlements between traders. The agreement between the Ministry and the Authority includes renewable provisions for energy supply during July and August, tailored to the interconnected networks' conditions and needs.

The trade-in electrical energy among GCC countries aims to sustain development, enhance reliability, and reduce production costs by offering sustainable energy at competitive prices. Notably, the value of electrical exchanges within the Gulf network was $136.64 million in 2021 and $83.75 million in 2022.