Kuwait City, August 18 2025 – The Kuwait Fund for Arab Economic Development has announced that the expansion of the Gulf Power Interconnection Project, launched in December 2022, constitutes a strategic milestone in advancing energy integration across the GCC. By enhancing electricity exchange efficiency and ensuring long-term sustainability, the initiative stands as a pivotal investment in the region’s clean energy future.
Acting Director General of the Kuwait Fund for Arab Economic Development, Mr. Waleed Al‑Bahar, reiterated that Kuwait remains the primary economic beneficiary of the project. The new Al‑Wafra 400 kV Station will augment Kuwait’s national grid capacity by approximately 2,500 megawatts, fortifying supply during peak demand and enhancing grid stability. Financing is delivered via two loans from the Kuwait Fund to the Gulf Interconnection Authority, totalling KWD 70 million (USD 224 million).
Crucially, the Al‑Wafra station and its link to Saudi Arabia are on track for completion by December 2024, enabling Kuwait to significantly advance energy resilience and regional connectivity. The Kuwait–Iraq interconnection (Al‑Wafra–Al‑Faw) is expected to be operational by May 2025, supporting expanded network capacity and cross-border energy exchange. The project is slated to begin operations by the end of 2024, with full readiness across the GCC–Iraq axis anticipated by 2026.
Mr. Al-Bahar further emphasized that the project underpins environmental goals by facilitating clean energy distribution and enabling electricity trade within the GCC and neighbouring regions, leveraging surplus capacity to generate long-term economic returns while reducing emissions.
Kuwait’s involvement in the southern Iraq expansion positions the nation as a central hub for regional electricity trade, reinforcing ambitions around energy security, efficiency, and resilience, while reaffirming its leadership in regional energy integration strategy.
Technical Scope and Infrastructure
Al-Wafra 400 kV Station – A new high-capacity substation in Kuwait, central to the expanded grid infrastructure.
400 kV Double-Circuit Overhead Transmission Lines connecting:
Al-Wafra (Kuwait) ↔ Al-Fadhili (Saudi Arabia) – completion: December 2024
Al-Wafra ↔ Sabah Al-Ahmad “3Z” & “4Z” (Kuwait internal grid)
Al-Wafra ↔ Al-Faw (Southern Iraq) – completion: May 2025, approximately 295 km span
Start of Operations – By end of 2024, with full readiness across GCC and Iraq by 2026
About the Kuwait Fund for Arab Economic Development
The Kuwait Fund For Arab Economic Development is the first institution in the Middle East that took an active role in the international development efforts.
The Kuwait Fund extends Loans on concessionary term to finance development projects in the developing countries. The Fund also provides technical assistance to finance the costs of the feasibility studies of projects, as well as the training of nationals of the borrowing countries. In addition, the Fund subscribes in the capital of international and regional development institutions. Today, the Kuwait Fund forms a solid bridge of friendship and solidarity between the state of Kuwait and the developing nations.
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