The Arab League of Countries sought the assistance of the Arab Fund for Economic and Social Development (AFESD) to carry out a feasibility study with the goal of determining the possibility for energy trade among the Arab countries as well as with other electric power markets, Electricity and Natural Gas. This study helps to investigate ways to maximize benefits of the integrated Arab electrical interconnection, and to assess the possibility and potential for exploitation of natural gas reserves for electric power export.
What we have done
CESI, winning an high level international competition, has been awarded this strategic and challenging study which, among the main objectives, has to establish a strategy and master plan to develop the trade of energy among Arab countries, determining the trade-offs between export of electricity and/or natural gas.
The formulation of the master plan is based upon the analysis of the electricity markets in all the Arab countries involved and the elucidation of practical scenarios for its development, once each scenario has been backed by solid techno-economic feasibility analysis.
The study investigates, evaluates and ranks all the possible alternative scenarios to expand, expedite and reinforce the interconnection of the electrical grids and natural gas networks, among interconnected Arab countries.
The outcome of the study broadens the understanding of interactions that exist - or could be developed - from electricity trade and natural gas export. It widens the technical knowledge of key energy players, i.e policy makers, producers and consumers, in the energy markets of Arab countries, with the aim of creating a real and functioning energy market in the region. One of the main study outcomes is a technical and economic feasibility analysis for Arab countries to compare exporting natural gas as a raw material or using it to prouce electricity that can subsequently be exported, thus benefiting from the added value of such utilization. In addition, the study includes a plan for additional, state of the art power plants for supporting the levels of proposed trading as well as the required reinforcements of current interconnections and/or the requirements for any new ones.