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Energy Insights 2025

Page 174

ENERGY AND GEOPOLITICS IN THE MIDDLE EAST

Progress in Power Grid Interconnection in the GCC and MENA Region Salem Alhajraf, PH.D. MBA Visiting Research Scholar

Setting the Scene Despite being responsible for one third of the world’s daily hydrocarbon exports, primarily oil and gas, many countries in the Middle East and North Africa (MENA) region are experiencing frequent power shortages. This has resulted in scheduled power cuts and common electricity blackouts. Over the past 25 years, electricity demand in the region has surged by 275%, rising from 918 terawatt-hours (TWh) in 2000 to 2,533 TWh in 2024, while the Gulf Cooperation Council (GCC) countries have experienced a remarkable increase of 362%. In comparison, global electricity generation rose by approximately 200% during the same period.1 Factors such as extreme heat, adverse weather conditions, economic growth, and a rising industrial, commercial, and household demand for electricity are driving many countries in the region to expand their electricity transmission networks and enhance crossborder grid interconnections. The development of power grid interconnection in the GCC and MENA regions became essential and has seen significant advancements over the last two decades. Such progress is crucial for enhancing energy security, improving regional electricity trade, and supporting sustainable development across the regions. Efforts have been made to establish a coordinated electrical infrastructure that fosters collaboration among countries, ultimately leading to a more integrated electricity trade market. Such initiatives not only aim to optimize resources but also address energy shortages and promote renewable energy as compatible with electricity reliability. As interconnections continue to evolve, stakeholders are focusing on policy alignment and investment to ensure a reliable and efficient power supply for both domestic and regional needs. Energy Insights 2025

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Energy Insights 2025 by Baker Institute Center for Energy Studies (CES) - Issuu