Completion of the First Three Phases of the Study Related to the Integrated Electrical Interconnection and Energy Trade Project between the Arab countries
The Arab Fund is currently financing a study related to the Integrated Electrical Interconnection and Energy Trade between the Arab countries. The study aims at comparing the benefits of exporting electricity versus natural gas used for electrical generation, in an effort to determine the optimum strategy for each Arab country, and all the Arab countries combined, in order to achieve the optimum utilization of their natural gas resources to meet the electrical demands in their various countries up to the year 2030.
The contract for executing the study was signed between the Arab Fund and the consortium CESI– Ramboll in February 2012. Regular progress review meetings are being held in the Arab League HQ building in Cairo. The meetings are attended by representatives of the Arab Fund, the study team, the League of Arab states (Energy sector), the member states, along with the consortium's staff.
The first three parts of the study were completed in 2012. They included the construction of databases containing information on the generation and transmission facilities in all Arab Countries that participated in the study, along with the compilation of information on the production, consumption and reserves of natural gas in the same countries, along with the determination of the feasibility of a number of future electrical and natural gas interconnection projects between the Arab countries.
It is expected that the remaining 4 phases of the study will be completed before the end of August 2013. The outcome of these phases will contain recommended strengthening of the various internal transmission networks in the various Arab countries to prevent any bottlenecks that could limit the amount of energy trade recommended in phase 3 of the study, the preferred financing schemes and implementation sequences for the recommended projects, along with the suggested prices for energy trade on each of the new interconnection projects.