Saudi-Jordanian Committee Approves Feasibility of Connecting Power Grids

Power Station Saudi Arabia (Reuters)
Power Station Saudi Arabia (Reuters)
TT

Saudi-Jordanian Committee Approves Feasibility of Connecting Power Grids

Power Station Saudi Arabia (Reuters)
Power Station Saudi Arabia (Reuters)

A Jordanian-Saudi technical committee approved the feasibility of connecting the electric power grids of the two countries through a 170km transmission line, which is expected to be operational in 2022.

National Electric Power Company (NEPCO) Director General Amjad Rawashdeh said in a press conference on Monday that the two sides drew a preliminary timetable for implementing the project.

Studies show that the Saudi consumption of electricity during the daytime, especially in the summer, is higher than during the evening hours, Rawashdeh said, while in Jordan the opposite is the case.

In light of the introduction of solar power stations to Jordan’s grid, electricity consumption would exceed that of Saudi Arabia during the early hours, particularly during winter.

The Director-General indicated that exporting electricity to Saudi Arabia during the daytime is possible and would allow future and contracted renewable energy power stations to be established, provided that electrical power would be imported from Saudi Arabia after sunset.

The projected exchange of electric power will not hinder either country’s ability to meet its own power needs at any time of the day, the statement added but would achieve optimal exploitation of electricity generation resources in the two kingdoms.

Rawashdeh pointed that technical and economic feasibility studies for the planned power link revealed a complementary relation between the two grids, expecting the joint project to open the door for establishing a joint Arab electricity market that links Arab Gulf countries, Jordan, Egypt, Palestine, Syria, and Iraq.

He indicated that such a connection is important because it would reduce power production costs and reflect consumers’ electricity bills in both countries, stating that this is expected to have a positive impact on various sectors.

Rawashdeh also noted that the Jordanian-Saudi electric connection will increase the networks’ reliability, especially the Jordanian grid’s, as it is the smaller in terms of size and capacity.

The link would also minimize the risks of sudden blackouts in generating units or the fluctuations in renewable power stations, which are affected by weather conditions.

Earlier, Jordan’s Minister for Energy and Mineral Resources, Hala Zawati, suggested that increasing the Jordanian production of solar power would allow the country to export excess electricity to other countries during daylight hours.

She indicated that Jordan has since started exporting to Palestine and soon will be exported to Iraq after the completion of the electrical connection, asserting that Jordan is also willing to provide electricity to Syria and Lebanon if needed.



Türkiye's Central Bank Lowers Key Interest Rate to 47.5%

A girl sells plastic items to people in the Kadikoy district in Istanbul, Türkiye, Saturday, Dec. 7, 2024. (AP Photo/Francisco Seco)
A girl sells plastic items to people in the Kadikoy district in Istanbul, Türkiye, Saturday, Dec. 7, 2024. (AP Photo/Francisco Seco)
TT

Türkiye's Central Bank Lowers Key Interest Rate to 47.5%

A girl sells plastic items to people in the Kadikoy district in Istanbul, Türkiye, Saturday, Dec. 7, 2024. (AP Photo/Francisco Seco)
A girl sells plastic items to people in the Kadikoy district in Istanbul, Türkiye, Saturday, Dec. 7, 2024. (AP Photo/Francisco Seco)

Türkiye’s central bank lowered its key interest rate by 2.5 percentage points to 47.5% on Thursday, carrying out its first rate cut in nearly two years as it tries to control soaring inflation.
Citing slowing inflation, the bank’s Monetary Policy Committee said it was reducing its one-week repo rate to 47.5% from the current 50%.
The committee said in a statement that the overall inflation trend was “flat” in November and that indicators suggest it is likely to decline in December, The Associated Press reported.

Demand within the country was slowing, helping to reduce inflation, it said.
Inflation in Türkiye surged in recent years due to declining foreign reserves and President Recep Tayyip Erdogan’s unconventional economic policy of lowering rates as a way to tame inflation — which he later abandoned.
Inflation stood at 47% in November, after having peaked at 85% in late 2022, although independent economists say the real rate is much higher than the official figures.

Most economists argue that higher interest rates help control inflation, but the Turkish leader had fired central bank governors for failing to fall in line with his previous rate-cutting policies.

Following a return to more conventional policies under a new economic team, the central bank raised interest rates from 8.5% to 50% between May 2023 and March 2024. The bank had kept rates steady at 50% until Thursday's rate cut.
The high inflation has left many households struggling to afford basic goods, such as food and housing.