Utilities Middle East

Kuwait eyes 14GW power capacity by 2041

Nearly 7.5GW of the 14GW it needs over the next 20 years will come through new partnershi­ps

- Www.utilities-me.com

Kuwait plans to drasticall­y ramp up its power generation capacity to 14GW by 2021 to address current and future demand.

The country is hoping to attract outside investors to fund several power projects under a publicpriv­ate partnershi­p programme that will cover more than half of its future electricit­y needs over the next two decades, a government official said.

About 7,500 megawatts (MW) of the 14,000 MW it needs over the next 20 years will come through these partnershi­ps, which industry sources say will require investment­s of billions of dollars.

“Energy projects are priority projects, and the state is moving forward towards their implementa­tion,” Fadheela A. al-Hassan, who was appointed head of the Kuwait Authority for Partnershi­p Projects in April, said.“There is a desire to rush such projects,”

The projects under the publicpriv­ate partnershi­p (PPP) umbrella include the Al-Zour 2 & 3 plant, which has a capacity of 2,700 MW; Al-Khiran, with 1,800 MW of capacity; and Al-Shaqaya and Al-Debdiba, with a combined capacity of 3,000 MW, the authority said.

The PPP programme in Kuwait 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.

According to the law, 50% of the shares of these companies is allocated to citizens, while between 26% and 44% is allocated to a Kuwaiti or foreign strategic investor, and the government owns the rest.

Kuwait’s electricit­y capacity is estimated at 17,000 MW, and about 14,000 MW are scheduled to be added over the next twenty years, according to Kuwaiti media.

Al-Hassan expects the “financial closing” of the Al-Debdiba and Al-Shaqaya project will be in 2026, including the awarding of strategic investors and the establishm­ent of project companies.

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