Kuwait Initiates Tender For New 0.5-Gigawatt Solar Project To Enhance Clean Power Generation

KAPP invites proposals for significant Solar PV roject following continuous power shortages. Image Credit: Getty Images
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Kuwait has launched the tender for a new 0.5-gigawatt solar project, intended to increase the amount of clean power generation in the Gulf state, by inviting pre-qualified consortia to submit proposals.

The Kuwait Authority for Partnership Projects reported on Sunday in the official gazette that the second such tender issued by Kuwait in the current year is the Al Dibdibah Power and Al Shagaya Renewable Energy Phase III, a Zone 2 solar PV independent power project.

KAPP said that it will be supplying the Ministry of Electricity on a 30-year power purchase contract.

Kuwait has been going through extensive power shortages because of robust population expansion, urban growth, increasing temperatures, and maintenance delays at some plants, compelling the OPEC member to impose scheduled power outages in some areas since last year.

There are six consortia invited to make bids, including groups headed by Jinko Power, Abu Dhabi Future Energy Company PJSC – Masdar, Tianjin Zhonghuan New Energy Co., EDF Renewables SA, ACWA Power, and Swift Current Management Services (SCF).

However, Limak Yatirim Enerji, TotalEnergies Renewables, and Kalyon Enerji have become eligible as contractors.

KAPP stated that the project will be undertaken by the winning bidder on a contractual basis, which will entail the development, financing, design, construction, and operation of the plant.

It will be formed within the PPP framework of Kuwait, whereby a strategic partner will own 26-44 percent of the project company, and 50 percent must be sold to Kuwaitis, and the remaining 50 percent to the government.

Therefore, Kuwait is in the process of increasing the speed of energy project implementation.

KAPP submitted bids in the initial phase of the 1.8-GW Al Khairan power project, and in August, it contracted over $3.27 billion with ACWA Power and Gulf Investment in Al-Zour North phase 2 and 3 in September.