Mohamed Al-Shaikh, BSc MSc CEng MIETManager, Maintenance - GCCIA

OVERVIEW

INTRODUCTION

PROJECT DESCRIPTION

PROJECT STATUS

LEGAL AND ORGANIZATIONAL DEVELOPMENT

PROSPECTS

CONCLUSIONS

Reduces investment for power reserves by 3.5 billion US $ (2008- 2028) for the same reliability.

Economic analysis of the interconnection indicated a cost / benefit ration 1.77 (all six countries )

The two common strategies: build capacities independently or interconnect individual systems.

Considerable investment is required to build new generating capacities .

Supply has to increase to match the anticipated demand.

Power Demand in GCC Countries is anticipated to increase from 32 GW in 2003 to 94 GW in 2028.r1

Slide 3

r1 I believe it is much more than this figure, only Saudi Arabia is 32,000 MW.rnassar, 10/10/2007

Provide means for energy trading

Provide emergency support to any system during black out situations

Improve the overall system reliability

Lower operating costs by using most economic generation unit in the interconnected system

Share spinning reserves to cover emergency operating conditions

Reduce generating capacity required in each system due to ability to share power reservesr4

Slide 4

r4 I believe it is much more than this figure, only Saudi Arabia is 32,000 MW.rnassar, 10/10/2007

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 100.0 100.0

r3

Slide 5

r3 This slide to be confirmed by Mr. Musallami.rnassar, 10/10/2007

SubstationsHVDC ConverterControl Center

SAUDI ARABIASEC – ERB

HDVCBACK-TO-BACK

KUWAITAL ZOUR 400 kV

BAHRAIN

QATARDOHA SOUTH SUPER 400 kV

OMANOMAN NORTHERN GRID

UAESHUWAIHAT

400 kV

EMIRATE NATIONAL GRID

1200 MW

1200 MW600 MW

750 MW

400 MW

900 MW

GHUNAN 400 kV

AL FADHILI 400 kV

310 km

90 km

100 km290 km

150 km

52 km

SALWA 400 kV

112 km

JASRA 400 kV

AL WASEET 220 kVAL OUHAH 220 kV

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

Contract No. Contract Actual Percentage (%)

112-A1 Al-Zour S/S 74.33112-A6 Al-Jasra S/S 66.16112-A7 Doha South S/S 81.08112-A2 Al-Fadhili S/S 93.42112-A4 Ghunan & R.A.Q. S/S 41.74112-A5 Salwa S/S 74.4113-A3 Al-Fadhili B2B 51.84114-B1 Al-Zour / Al-Fadhili T/L 41.06114-B4 Salwa / Doha South T/L 50.98114-B2 Al-Fadhili / Ghunan T/L 81.62114-B3 R.A.Q. / Ghunan / Salwa T/L 28.14115-B5 Land & Submarine Cable 10.66116-C Control Systems 64.09

Overall Progress 41.34

GCC MinisterialCommittee

GCCIABoard of Directors

GCCIA - CEO

General Agreement

PETA

Transmission& Metering Codes

E & W MinisterialCommittee Level

General Assembly& Board Level

GCC Utilities Level

Articles / Bylaws

PlanningCommittee

OperatingCommittee

Regulatory AdvisoryCommittee

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 the

technical provisions which the Authority, the TSO Parties and the Procurement

Parties will observe when operating and

using the Interconnector .

Interconnector Transmission Code (ITC)

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.

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.

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.

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.

GeneralAgreement

(GA)

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

EJLIST

UCTE

East

Arab Maghreb GCC

Utilize the OPGW fiber optic excess capacity

Authority may lease out fibers

Market is being

explored

The Interconnector Provides an opportunity for capitalizing in fiber optic excess capacity

The GCC Grid will be a fundamental step that can lead to a regional electricity market

The Interconnector’s legal and organisational frame work is in the process of being finalised

The work progress shows about 41 % accomplishment as on September 2007

The Interconnector’s connection points rated equivalent to the loss of 50% of the largest power plant for each country

The Interconnector will provide economic benefits and support in emergency situations