Kuwait Launches Tender For 1,100 MW Solar Power Plant, Advancing Renewable Energy Goals

In a pivotal move towards sustainable energy, the Kuwait Authority for Partnership Projects (KAPP), in collaboration with the Ministry of Electricity & Water & Renewable Energy, initiates the qualification process for companies and consortia to participate in a tender. This tender aims to develop the Al Dibdibah Power and Al Shagaya Renewable Energy – Phase III – Zone 1 Solar PV Independent Power Producer (IPP) project, boasting a net capacity of 1,100 MW.

Key Highlights:

1. Project Overview: The solar power plant will be situated within the Jahra Governorate, approximately 100 kilometers from Kuwait City, contributing to the national grid and transmission network.
2. Power Purchase Agreement (PPA): The project benefits from a 30-year Power Purchase Agreement with the Ministry of Electricity & Water & Renewable Energy as the off-taker.
3. Objectives of the Project:

• Introduce private sector practices and capital to traditionally public sector-controlled domains.
• Alleviate the financial and operational burden from the Ministry of Electricity & Water & Renewable Energy.
• Decrease dependence on fossil fuels, reducing overall power generation costs.
• Enhance renewable energy capacity in Kuwait’s energy mix.

1. Qualification Criteria: Companies or consortia must demonstrate financial strength, operational experience, and a track record of successful project development in line with specified criteria.
2. RFQ Package: Interested parties can obtain the Request for Qualification (RFQ) package by making a payment of 3,500 Kuwaiti Dinars. The deadline for purchasing the RFQ package is 22nd Feb 2024.
3. Submission Deadline: Applicants must upload all required elements onto the electronic portal by noon on 7th March 2024.

Partnership and Advisors:

• Ernst & Young serves as the Lead & Financial Advisor.
• DLA Piper provides legal advisory services.
• DNV acts as the Technical & Environmental Advisor.

This significant step aligns with Kuwait’s commitment to embracing clean energy and marks a strategic move towards reducing reliance on conventional power sources. The qualification process signals a new era for private sector involvement in Kuwait’s renewable energy landscape.