UAE and Saudi Arabia Set Sights on Electricity Exports to India and the EU

The United Arab Emirates and Saudi Arabia are accelerating efforts to become major exporters of electricity, leveraging excess generation capacity fueled by heavy investments in renewable energy and seasonal shifts in regional demand.

According to Adnan Al Hosani, Director of Electricity and Trade at the UAE’s Ministry of Energy, the country currently operates with approximately 50% spare capacity, positioning it as a strong contender in the global electricity market.

The UAE’s growing portfolio of clean energy, including the 5.6 GW Barakah nuclear plant and large-scale solar projects like Noor Abu Dhabi, is expected to nearly double by 2030. Upcoming solar developments and a second nuclear facility are already in progress, Hosani revealed.

One of the UAE’s most ambitious initiatives involves a proposed high-voltage direct current (HVDC) subsea cable connecting the Emirates to India. The project, now undergoing feasibility studies, could require an investment of up to $6 billion.

Meanwhile, Saudi Arabia is advancing its own clean energy goals, aiming to develop 130 GW of renewable capacity by the end of the decade. The Kingdom is also in talks with the United States about potential nuclear power development.

“Saudi Arabia intends to remain a leading global energy exporter, not just in fossil fuels, but in electricity as well” said Andrew Shaw, Vice President of the Electrical Division at Alfanar Group, the largest private electrical manufacturer in the country.

In a major milestone, Saudi Arabia’s first subsea HVDC link to Egypt is expected to begin operations this June, delivering up to 3 GW. A similar connection to India is also under consideration. Indian Prime Minister Narendra Modi recently confirmed that both countries are exploring grid interconnectivity options during a visit to the Kingdom.

The growing push for cross-border electricity trade is seen by Gulf nations as both a new revenue stream and a step toward a more sustainable energy model. With a population of around 60 million, electricity demand in the GCC peaks during the summer months due to intense reliance on air conditioning.

“This shift reflects a broader drive for energy efficiency” noted economist Nasser Saidi. He emphasized that integrated power grids allow for more efficient fuel use and lower per-unit energy costs.

The GCC Interconnection Authority (GCCIA) is expanding regional connectivity, now linking the UAE and Kuwait, with Oman next in line. These interconnections have already proven valuable for countries like Kuwait and Iraq, which struggle with chronic power shortages.

Kuwait, for instance, relied on GCCIA support last summer and expects demand to surpass 19 GW again this year. Iraq, facing deficits as high as 12 GW is set to import nearly 4 terawatt hours annually through a connection with Kuwait, alongside a planned 1,000 MW link with Saudi Arabia.

Looking beyond the Gulf, the UAE is involved in several transcontinental electricity initiatives. One project includes a $1 billion Mediterranean subsea cable to transport renewable power across the region. The UAE is also part of a plan to connect with Italy and Albania via the Adriatic Sea.

Abu Dhabi’s Taqa, the national energy company, has invested $100 million in Xlinks, a UK-based project to transmit Moroccan solar and wind power to the British grid.

Other international efforts, such as the Elmed interconnection between Tunisia and Sicily, aim to integrate North African and Gulf energy supplies into the European market.
“The Arab region is well-positioned to benefit from an EU-Arab electricity interconnection, especially during periods of energy surplus” said Alessandro Armenia, an energy analyst at Kpler. He pointed to Italy and Greece as ideal entry points, given their high and volatile electricity prices, adding that “GCC exporters could capture significant value in such a market”.