Kuwait has launched the tender process for a 500-megawatt solar project, marking a new step in its strategy to develop independent power capacities. The project is part of the third phase of the Al Shagaya complex and also includes the Al Dibdibah site. It will be executed under the public-private partnership (PPP) framework, managed by the Kuwait Authority for Partnership Projects (KAPP).
Thirty-year power purchase agreement
The project, titled Zone 2 Solar PV Independent Power Project, is set to operate under a 30-year power purchase agreement with the Ministry of Electricity. The selected consortium will be responsible for the development, financing, design, construction, and operation of the facility. The required ownership structure includes a 26% to 44% stake for a strategic partner, 50% for Kuwaiti investors, and the remaining shares held by the government.
Six consortia invited to bid
Prequalified entities include groups led by Jinko Power, Abu Dhabi Future Energy Company PJSC – Masdar, Tianjin Zhonghuan New Energy Co., EDF Renewables SA, ACWA Power, and Swift Current Management Services (SCF). Subcontractors qualified for the project include Limak Yatirim Enerji, TotalEnergies Renewables, and Kalyon Enerji.
Addressing pressure on the power grid
This development comes as Kuwait faces mounting pressure on its power grid. Rapid population growth, urban expansion, rising temperatures, and maintenance delays have led authorities to impose planned power cuts in certain regions since last year.
Accelerated energy project deployment
The country has recently ramped up its investment in energy infrastructure. In September, KAPP opened bids for the first phase of the 1.8-gigawatt Al Khairan project. In August, over $3.27 billion in contracts were signed with ACWA Power and Gulf Investment Corporation for phases 2 and 3 of the Al-Zour North power plant.
