Power trading through the Interconnector: Initiation of a local GCC Power market and overcoming challenges

摘要

In the third quarter of 2009, most of the Gulf Countries Council members’ electrical networks werernconnected through a 400 kV backbone that span from south of Kuwait till the north of Abu Dhabi.rnEstablished for the main purpose of emergency support as envisioned in early 1980s, the projectrnspanned to create a new source of industry in the region which is power trading between the memberrnstates through the GCC Interconnector. This new industry is still in its path towards acceptance andrnmaturity.rnThis paper would focus on the process of development of power trading in the GCC region. Thoughrnthe interconnection has been in service since 2009, the optimization of the grid capacity has notrnreached the status where it could be labelled as “active” till date. It has been noted that there arernobstacles and challenges that could hamper the further growth of power trading. Issues such asrnsubsidized fuel prices, different regulatory frameworks, difference in interest, priorities and nationalrnstrategies are key issues that have been observed to challenge cross-border power trading between thernmember states. In this paper, we would examine these obstacles and address a suitable tactic tornovercome it in order to promote and support the growth and development of power trading.rnThrough proper observations of power trading activities that has taken place in 2010 and 2011rnbetween member states using the GCC Interconnector, the trend and circumstances would be reviewedrnagainst the typical and standard power trading practices from around the globe. Captured fromrnMember states feedback and meetings, issues and concerns on the matter of power trading will berntreated as official stance and as part of the proposed approach towards creating a local energy marketrnin the region. Findings are formulated into tangible and acceptable proceedings that the member statesrncould adopt as part of their development plans for the region and fits within the objectives of their longrnterm visions.rnFrom this paper, it could be seen that to establish a new industrial growth in the oil-rich region,rnmultiple angles and issues such as local politics, industrial reform and adoption of new global trendsrnare some of the main points that need to be taken in consideration and addressed. GCC Interconnection Authority (GCCIA), the transmission system operator of the GCC Interconnection,rnhas been given the role to be the driver for the region to facilitate power trading between memberrnstates and to take an active role in it. Utilization of technical solutions and provision of practicalrnprocedure, GCCIA has been active in promoting the culture and benefits of power trading between thernmember states. Through dedication and focused ambition, the member states along with GCCrnInterconnection Authority (GCCIA) could develop from scratch a new field of industry in the regionrnthat could save on annual costs, conserve fuel and generate steady revenue. If such initiatives are takenrnin consideration and implementation, it could be forecasted that attraction for foreign investment,rnwelfare development and partnership in the region would be on the rise in this strategic part of thernglobe.