QFFD to loan $100m for electricity grid expansion in Oman
The Peninsula
Muscat: Qatar Fund for Development (QFFD) has signed a loan agreement with the GCC Interconnection Authority to finance the expansion of the electrici...
Muscat: Qatar Fund for Development (QFFD) has signed a loan agreement with the GCC Interconnection Authority to finance the expansion of the electricity grid in the brotherly Sultanate of Oman, as part of efforts to enhance regional cooperation and sustainable development. The total project cost is estimated at $560m, with the fund contributing a loan of $100m.
In a press release today, QFFD said: “This project is a strategic step toward the integration of the GCC energy networks and a vital strategic initiative aimed at enhancing the integration of regional energy grids, increasing the reliability and sustainability of electricity systems in the region.”
The project will provide significant benefits for Oman and the GCC countries, achieving savings of hundreds of megawatts from additional generation capacities, thereby reducing the need to build new power plants. It will also facilitate and enhance electricity exchange between GCC countries and Oman, increasing the flexibility of electrical systems and improving their stability. Additionally, it will reduce operational costs by cutting down the operational expenses of connected countries and generate significant annual financial savings. An important benefit of the project is its contribution to reducing carbon emissions, supporting environmental conservation goals.
Oman’s Minister of Energy and Minerals, H E Eng Salim bin Nasser Al Oufi confirmed that the signing of the financing agreement represents a strategic step within the GCC energy integration policies. He pointed out that the project enhances energy security and sustainability, supporting the GCC countries’ plans to develop energy infrastructure in an efficient and reliable manner.
He also praised the central role of the GCC Interconnection Authority in implementing joint interconnection strategies, emphasizing that this project strengthens the stability of electrical networks and supports the GCC’s drive toward integrated energy markets.
