In recent years, the Middle East region countries have experienced rapid population and economy growth, which has resulted in large increase of energy and power demand. Although the traditional fossil fuels remain the majority for supplying the domestic demand, additional generating capacity and fuel supply are necessary according to current situation and future demand forecast. The renewable energy provides an alternative resource for satisfying demand, especially in this region with high potential of solar and wind energy. Besides the development of renewable energy, interconnected electricity networks also enable the cross-border power exchange to fulfil electricity demand. Many Middle East countries have already started developing renewable energy and reforming the national power sector for regional electricity integration. However, none of them has already implemented their targets and the challenges are still huge. This study reviews current conditions of electricity and energy interconnection development, and analyzes the process of regional electricity network integration and national power sector reforms and provides suggestion for regions’ plan. Finally, the technology developments for future power grid interconnection and renewable energy integration are also reviewed.