How to Build a GCC Power Market

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The current crisis in the Strait of Hormuz is likely to push Gulf Arab countries further in a positive direction. Long before the conflict began, the six countries of the Gulf Cooperation Council (GCC) had already been rapidly expanding their renewable energy infrastructure. This remarkable growth is central to their plans to diversify and decarbonize power generation while sustaining economic development. However, as the GCC scales up its energy systems, operational complexity will increase. To address these challenges efficiently — and to continue expanding cost-effectively — the region should consider the substantial benefits of a cross-border regional power market. We believe that such an ecosystem — a true regional power market — is both technically and politically viable in the GCC. This article outlines key considerations and proposes a practical pathway toward its realization.

A true regional power market is a wholesale electricity market built on transparent exchanges and brokerage systems, enabling price discovery at any point in time across GCC countries — subject to available cross-border transmission capacity.

Such a market would deliver significant operational advantages and reduce overall system costs. It would improve utilization of existing infrastructure, enhance supply security, and enable more efficient balancing and reserve sharing across interconnected systems.

Source: Wikipedia