Kuwait Nears Decision On 1.1 GW Al Shagaya Solar Project As Renewable Energy Expansion Advances

Kuwait is moving closer to awarding one of its largest solar energy projects as part of the country’s efforts to expand renewable energy generation. The government is expected to announce the winning bidder for the Al Dibdibah Power and Al Shagaya Renewable Energy Phase III Zone 1 project during the third quarter of 2026. The project, which has a planned capacity of 1.1 GW, will be developed at the Shagaya Renewable Energy Park in the Jahra governorate.

Authorities had initially planned to reveal the selected developer in June. However, recent reports indicate that the preferred bidder is now expected to be announced within the next two months. Financial bids for the solar photovoltaic project are scheduled to be opened by mid-July, marking a key step in the selection process.

Three major international consortia are competing for the contract. One consortium is led by Saudi Arabia’s ACWA Power in partnership with Kuwait’s Alternative Energy Projects Company. Another bidder includes Abu Dhabi-based Masdar working together with Fouad Alghanim & Sons General Trading and Contracting. The third consortium consists of France’s EDF Renewables, South Korea’s Western Power Company, and Kuwait’s Abdullah Al Hamad Al Sagar and Brothers Company.

The competing groups submitted their technical proposals earlier this year after the request for proposals was officially issued in June 2025. The project is expected to play a major role in increasing Kuwait’s renewable energy capacity and supporting its long-term sustainability goals.

Meanwhile, the Kuwait Authority for Partnership Projects has extended the deadline for bid submissions for Phase III Zone 2, a separate solar project with a planned capacity of 500 MW. Companies interested in the project now have until July 26 to submit their proposals. The extension was granted after bidders requested additional time to finalize their offers.

Seven companies and consortia are currently competing for the Zone 2 contract. The project has experienced several timetable changes since the request for proposals was launched in late 2025. Earlier, the submission deadline had already been pushed from February to April before being extended again to July.

Together, the Zone 1 and Zone 2 developments highlight Kuwait’s commitment to expanding renewable energy infrastructure and increasing the share of solar power in its national electricity mix.