Kuwait Cancels $1.4bln Al Dabdaba Solar Project Due To Covid-19

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Kuwait has cancelled plans to set up the Al Dabdaba solar plant, which would have provided 15 % of the oil sector’s needs from renewable sources, due to the Covid-19 pandemic, reported Reuters.

After evaluating the project in the context of spreading of coronavirus and its impacts on the global oil and financial markets, the decision was taken.

The plant was planned to be constructed at Al-Shagaya renewable energy complex which is nearly 100 miles west of the capital Kuwait City and near to the Saudi border.

The lowest bid for the project was KD439 million ($1.4 billion), Kuwait’s Alrai newspaper stated. But the project was repeatedly delayed due to bureaucratic procedures, it added.

The project was planned for operational launch in February next year and it was developed by the Kuwait National Petroleum Company. However, the project was repeatedly delayed due to bureaucratic procedures, it added.

It would have been one of the largest PV solar facilities generating 2,500GWh of electricity per year.

Earlier the Kuwait National Petroleum Company (KNPC), which oversees the project was awaiting government response on whether to re-tender or award the project to the contractor with the lowest bid, the Arabic language daily Al-Rai said, quoting KNPC sources.

The Dabdaba project is part of government plans to tap renewable energy sources to expand their share of the energy mix to 15 percent by 2030 and has been on the cards for nearly two years. 

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