The Qatar Fund for Development (QFFD) has agreed with the Gulf Cooperation Council Interconnection Authority (GCCIA) to develop the Gulf electricity interconnection system and connect it to the southern Iraq network. The project includes the construction of a new transformer substation with a capacity of about 400 KV in the Wafra area in Kuwait and a link between the Gulf electricity interconnection system and the Iraqi electricity network through Al-Faw electricity transformer station in southern Iraq. It will be implemented by the GCC Electricity Interconnection Authority, which owns and manages the Gulf electrical interconnection network.
In July 2022, Saudi Arabia and Iraq signed the executive report on the principles of the electricity interconnection agreement for a 1 GW line. The 400 kV, 435 km-long line will connect the town of Arar in northern Saudi Arabia to the city of Yusufiya in central Iraq. The project is expected to be commissioned in 2023 or 2024. In September 2020, Iraq also reached an agreement with Jordan to link their power grids and Jordan accepted to provide Iraq with 1 TWh/year starting in December 2022. The two countries could increase the exchanges on a later stage. In 2020, Iraq imported 11.8 TWh of electricity, mainly from Iran, accounting for 26% of the country's power consumption.