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Cross-border electricity trading in the GCC countries, Egypt, Jordan and Iraq: Hourly market coupling or bilateral agreements?

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  • Petitet, Marie
  • Ricaud, Benjamin
  • Felder, Frank A.
  • Elshurafa, Amro M.

Abstract

Cross-border electricity trading in the Middle East and North Africa region can provide cost and environmental benefits. Several projects of interconnectors are on-going or under consideration in the region, and policymakers must develop the appropriate contractual scheme to trade electricity. Based on an economic dispatch model at the 2030 horizon, this paper investigates implications of the electricity trade in the Gulf Cooperation Council countries plus Egypt, Jordan, and Iraq. The model adopts an hourly resolution, accounting for time zone differences between countries, and considers current and future network interconnections. The results indicate that implementing an hourly market coupling, formulized as a regional cost-based power pool, can decrease the region's annual generation cost by 1.6 % on average, while avoiding 35 % of renewable curtailment and reducing carbon dioxide (CO2) emissions by 8 million metric tons in 2030.

Suggested Citation

  • Petitet, Marie & Ricaud, Benjamin & Felder, Frank A. & Elshurafa, Amro M., 2025. "Cross-border electricity trading in the GCC countries, Egypt, Jordan and Iraq: Hourly market coupling or bilateral agreements?," Energy, Elsevier, vol. 327(C).
    • Handle: RePEc:eee:energy:v:327:y:2025:i:c:s0360544225019620
    DOI: 10.1016/j.energy.2025.136320
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