- Kuwait is launching key public-private energy projects to address its power crisis, with major contracts to be awarded soon.
- Projects like Al-Zour North and Dabdaba-Shagaya aim to boost capacity and deliver 4.5 GW of renewable energy by 2030.
Kuwait has stepped up efforts to resolve its worsening electricity crisis by fast-tracking a series of energy projects backed by public and private investors. Acting Director General Asmaa Al-Mousa confirmed in a recent interview with Reuters that the Kuwait Authority for Partnership Projects (KAPP) plans to award at least one major contract within weeks.
Kuwait, a founding member of the Organisation of the Petroleum Exporting Countries (OPEC), continues to face a severe power shortfall. Rapid population growth, urban sprawl, escalating summer temperatures, and delayed maintenance at key power plants have all strained the country’s energy infrastructure.
In response, the government introduced scheduled power cuts in certain areas last year to relieve pressure on the grid.
KAPP has mobilised its Public-Private Partnership (PPP) framework to address the crisis and launch several large-scale energy projects. The framework establishes dedicated companies to deliver these developments, with a strategic partner leading each one, either Kuwaiti, foreign, or a consortium, which holds between 26% and 44% of the company’s shares.
KAPP reserves 50% of the shares for Kuwaiti citizens, while the government retains the remaining equity. The companies then sell their output, including power and desalinated water, back to the government.
“We are advancing these partnerships to ease the financial burden on the state,” Al-Mousa said. “The private sector will cover most project costs, allowing us to expand capacity without overstretching public finances.”
KAPP is currently advancing several priority projects. These include the Khairan power plant, the Dabdaba-Shagaya renewable energy complex, and the second and third phases of the Al-Zour North power and water station. Al-Mousa noted that the authority will award contracts for these developments within weeks. Once granted, construction will begin immediately.
Once complete, the Al-Zour North project will supply 2.7 gigawatts (GW) of electricity and 120 million gallons of desalinated water daily. Engineers will use combined-cycle technology to improve efficiency. The construction phase is expected to last three years.
Meanwhile, KAPP is preparing to launch tenders for phases one and two of the Dabdaba-Shagaya renewable energy project before the end of 2025. Phase one, with a generation capacity of 1.1 GW, has already completed its qualification process. The authority has now invited companies to submit qualification requests for phase two, which aims to add another 500 megawatts of renewable energy.
KAPP plans to complete the four-phase Dabdaba-Shagaya project by 2030, delivering a total renewable capacity of 4.5 GW. Officials expect these initiatives to diversify Kuwait’s energy mix, reduce its reliance on fossil fuels, and strengthen its power grid.