Arab Power Interconnection: Expanding Energy Trade

Arab Power Interconnection: Expanding Energy Trade
Arab Power Interconnection: Expanding Energy Trade
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Amman – Electricity interconnection projects between Jordan and neighboring countries are entering a new phase of expansion, with plans to increase exchange capacity with Egypt, move ahead with the Jordan-Iraq interconnection project, and address technical challenges affecting links with Syria and Lebanon, according to a UN paper titled “Energy Trade for Renewable Energy Development: Global Best Practices, Challenges and the Way Forward.”
اضافة اعلان
The paper highlights the importance of electricity interconnection in strengthening security of supply, improving the efficiency of energy resources, and creating opportunities to expand electricity trade between countries, particularly as the need to develop power grids grows to accommodate the expansion of renewable energy sources.

Issued by the United Nations Economic and Social Commission for Western Asia (ESCWA), the paper identifies Jordan as a cornerstone of the electricity interconnection system linking Egypt, the Levant and Iraq. This strengthens Jordan’s role in supporting regional integration in the energy sector and expanding opportunities for electricity exchanges among countries, as part of efforts to enhance security of supply and improve the efficiency of available resources.

The paper, translated by Al-Ghad, revealed that the Jordanian government has plans to expand energy exchange projects with countries across the region, launch new projects and increase exchange capacities under existing interconnection schemes.

Jordan’s Interconnection Projects With Neighbors

According to the paper, Jordan has been electrically connected with Egypt since 1998 and 1999 through a submarine cable crossing the Gulf of Aqaba. The link operates at 400 kilovolts and extends for approximately 13 kilometers, while the current electricity exchange capacity between the two countries ranges from 500 to 550 megawatts.

The paper revealed plans to increase the exchange capacity to around 1,100 megawatts by studying the construction of a second interconnection line. This would expand energy exchange opportunities between the two countries and enhance the utilization of their respective grid capacities.

Regarding Iraq, the paper reviews the electricity interconnection project between the two countries, with an initial capacity ranging between 150 and 200 megawatts. Work is also underway to reinforce the electricity grid in eastern Jordan in preparation for the project’s requirements, with implementation expected to accelerate in the coming years.

Jordan’s interconnection with Syria is provided through a 400-kilovolt overhead transmission line extending approximately 147 kilometers, with a nominal capacity ranging between 300 and 800 megawatts. However, the utilization of the line faces technical and operational challenges, requiring equipment rehabilitation and the removal of constraints affecting electricity flows, in addition to stronger coordination among the relevant authorities.

The paper said the Levant electricity interconnection corridor linking Jordan with Syria and Lebanon is among the key projects the Jordanian government aims to advance during the coming phase. Although the physical assets and infrastructure required to connect the three countries have been completed, commercial exchanges and energy flows through the corridor continue to face significant disruptions due to instability and existing technical constraints.

The paper places Jordan’s interconnection projects within a broader corridor linking Egypt, the Levant and Iraq, describing it as a model of gradual regional interconnection that enables countries to expand electricity exchanges and strengthen grid stability in line with available technical and economic capabilities.

Arab Interconnection: Projects to Expand Energy Exchange

At the Arab level, the paper reviews electricity interconnection experiences in several regions, including the Gulf Cooperation Council Interconnection Grid, which links the six GCC states and allows them to exchange electricity and benefit from available reserves. This helps reduce the cost of maintaining reserves and improves the ability to respond to emergencies.

It also examines the Egypt-Saudi Arabia electricity interconnection project, which aims to reach an exchange capacity of 3,000 megawatts using high-voltage direct current technology. The project would strengthen electricity exchanges between the two countries while allowing them to benefit from differences in peak-demand periods.

In North Africa, the paper points to interconnection networks among Maghreb countries, as well as existing links between some countries in the region and Europe. These connections provide opportunities to expand electricity trade and increase the use of renewable energy resources.

These projects reflect a broader trend toward developing electricity networks and moving from relatively separate national systems toward more interconnected grids. This expands opportunities for energy exchange and enables countries to benefit from differences in production and consumption patterns.

Arab Common Electricity Market

The Arab Common Electricity Market is emerging as one of the proposed pathways for strengthening integration among Arab energy markets through the development of regulatory and institutional frameworks governing electricity trade between countries.

The League of Arab States, with technical support from ESCWA, is working to advance this approach with the aim of facilitating electricity exchanges and gradually moving from bilateral agreements toward a broader Arab electricity market.

Developing such a market faces challenges related to harmonizing legislation, electricity tariffs and grid operating rules, as well as coordinating exchange operations and settling transactions between participating countries.

Recommendations to Strengthen Interconnection and Energy Trade

Regarding the steps needed to develop electricity trade across the Arab region, the paper stresses the importance of harmonizing regulatory frameworks and grid operating procedures, while developing clear mechanisms for electricity pricing, determining transmission costs and settling transactions. These measures would facilitate exchanges between countries and strengthen investor confidence.

The approaches outlined in the paper also call for increased investment in high-voltage transmission networks and the development of energy storage technologies and smart grids to enhance the ability of electricity systems to accommodate variable renewable energy generation.

The recommendations include strengthening the exchange of technical and operational data among countries and coordinating grid development planning. They also call for preparing bankable projects supported by clear contracts and stable cost-recovery mechanisms, helping attract private-sector investment and development-financing institutions.

The paper concludes that expanding electricity interconnections requires not only infrastructure development but also institutional cooperation and regulatory coordination among countries. This would enhance the economic benefits of electricity trade, strengthen energy security and support the transition toward renewable energy sources.

Source: Al-Ghad