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Kuwait is planning to speed up its power generation projects to 14GW capacity by 2041 to focus on the present and future demands.
The country is hoping to attract outside investors to fund several power projects under a public-private partnership (PPP) program that will cover more than half of its future electricity needs over the next two decades.
Around 7,500 MW (7.5GW) of 14,000 MW (14GW) will come from these partnerships over the coming 20 years which requires billions of dollars of investment.
Fadheela A. al-Hassan, head of the Kuwait Authority for Partnership Projects, said, “Energy projects are priority projects, and the state is moving forward towards their implementation. There is a desire to rush such projects.”
The projects under PPP program comprise Al-Khiran, with the capacity of 1,800 MW, the Al-Zour 2 & 3 plant, with 2,700 MW of capacity and Al-Shaqaya and Al-Debdiba, with a combined capacity of 3,000 MW.
The PPP program is based on the creation of public shareholding companies that carry out projects managed by a strategic partner, and the goods and services produced are purchased by the government.
As per the law, 50% of the shares of these companies are allocated to Kuwaiti citizens, while between 26% and 44% are allocated to a Kuwaiti or foreign strategic investor, and rest is owned by the government.
Electricity capacity of Kuwait is estimated at 17,000 MW, and around 14,000 MW are scheduled to be added over the next 20 years.
It is anticipated that the Al-Debdiba and Al-Shaqaya project will receive its financial closing by 2026.
The feasibility studies for the Al-Zour 2 & 3 and Al-Khiran projects had been completed and now they are in the process of being approved by the board of the authority as part of preparations to qualify under the PPP plan.