The Government of Kuwait has officially shortlisted a group of candidates to bid for the development of the Al Dibdibah Power and Al Shagaya Renewable Energy – Phase III – Zone 2 photovoltaic solar power plant. The project is led by the Kuwait Authority for Partnership Projects (KAPP) in collaboration with the Ministry of Electricity, Water and Renewable Energy of the State of Kuwait (MEWRE).
A project structured as a public-private partnership
The project is based on an Independent Power Producer (IPP) model, under which the selected companies will be responsible for financing, designing, constructing, operating, maintaining, and ultimately transferring the facility. With a net capacity of 500 megawatts, the plant will be connected to the national grid and contribute to the country’s power supply.
The facility will be located in the Al Jahra Governorate, approximately 100 kilometres west of Kuwait City. This initiative is part of a series of government-led efforts to diversify Kuwait’s energy supply sources through long-term structured partnerships.
A 30-year power purchase agreement
The associated Power Purchase Agreement (PPA) is structured for a 30-year term, with MEWRE acting as the sole offtaker of the electricity produced. This contract model is intended to secure the project’s long-term economic viability for private investors.
The Kuwaiti government has appointed several international firms to support the selection process. Ernst & Young is acting as Lead and Financial Advisor, DLA Piper as Legal Advisor, and DNV is providing technical and environmental expertise.
A milestone for Kuwait’s solar market development
The announcement of the shortlisted bidders marks a new step in the expansion of Kuwait’s solar portfolio. The Al Dibdibah project, now in its third phase, reflects the authorities’ intent to develop a structured market through bankable, IPP-based projects.
The identification of shortlisted bidders paves the way for the next stages of the tender process, aiming to appoint the selected developer in the coming months.
