The tender process for Kuwait’s 500MW Al-Dabdaba Solar Power Project and the Shagaya Renewable Energy Project (Phase III Stage II, planned for Al-Jahra Governorate) has reached a critical milestone, with 9 consortia successfully shortlisted.
The shortlist was announced jointly by the Kuwait Authority for Partnership Projects (KAPP), the Ministry of Electricity & Water & Renewable Energy, and the Kuwait Institute for Scientific Research (KISR). The shortlisted companies include international energy giants and regional leaders, encompassing several Chinese enterprises such as Jinko Power. The detailed list is as follows:
- Saudi Arabia’s ACWA Power and Kuwait’s Alternative Energy Projects Company;
- France’s EDF Renouvelables, Kuwait’s A.H. Al-Sagar & Bros., and South Korea’s Western Power Company;
- China’s Jinko Power (HK) and Kuwait’s United Group for Building and Contracting;
- UAE’s Masdar and Kuwait’s Fouad Al Ghanim & Sons General Trading & Contracting;
- France’s TotalEnergies;
- Turkey’s Kalyon Enerji;
- USA’s Swift Current Management Services (SCE) and Kuwait’s Arizona National General Trading & Contracting;
- Turkey’s Limak;
- China’s Tianjin Zhonghuan, Sinotec Co., Ltd., and Kuwait’s Mohammed Abdulmohsin Al-Kharafi & Sons.
Reportedly, the PV capacity for the aforementioned project will be deployed within the Shagaya Renewable Energy Park, west of Kuwait City. The winning bidder will be responsible for the design, financing, construction, ownership, operation, and maintenance of the power plant. Project ownership will be transferred to the Kuwaiti government after 30 years.
Kuwait has been accelerating its energy transition process in recent years. With the recent announcement of the prequalification results for the Al-Dibdibah and Al-Shagaya Phase III Stage II Solar Independent Power Producer (IPP) project, this Gulf nation is once again becoming a focus for Chinese power investors and engineering contractors.
This solar IPP project, led by Kuwait’s Ministry of Electricity & Water & Renewable Energy and the Kuwait National Renewable Energy Program (KNREP), will be developed using the IPP model. It will supply electricity to the national grid via a long-term power purchase agreement and is a key demonstration project under Kuwait’s “2030 Renewable Energy Strategy.”
Kuwait has long relied on fossil fuels for power generation, with over 80% of its installed capacity coming from natural gas and fuel oil units. However, pressure from high oil prices and electricity subsidies is driving the government to accelerate its transition.
Currently, Kuwait’s renewable energy market shows three main development trends: firstly, the clarification of energy transition targets, with national long-term development plans and renewable energy roadmaps setting clear renewable energy share goals; secondly, the maturation of project models, with IPP/BOO models gradually being rolled out; and thirdly, the return of international and multilateral financing institutions to the market, as improved fiscal stability ratings are expected to enhance financing availability.
