On January 4, 2024, the Kuwait
Authority for Partnership Projects (KAPP), in conjunction with the Ministry of
Electricity & Water & Renewable Energy, initiated the qualification
process for companies and consortia interested in participating in a tender.
This tender is geared towards the development of 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.
Located within the Jahra
Governorate, approximately 100 kilometers from Kuwait City, the solar power
plant is set to contribute significantly to the national grid and transmission
network. The project is backed by a 30-year Power Purchase Agreement with the
Ministry of Electricity & Water & Renewable Energy serving as the
off-taker.
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.
Firms or consortia seeking
participation in the tender must exhibit financial robustness, operational
expertise, and a proven track record in successful project development,
adhering to specified criteria. The Request for Qualification (RFQ) package is
available for interested parties upon payment of USD 11,381.24. The deadline
for acquiring the RFQ package is February 22, 2024. Applicants are required to
upload all necessary documentation onto the electronic portal by noon on March
7, 2024.
This significant move aligns with
Kuwait’s dedication to adopting clean energy practices and signifies a
strategic shift towards diminishing dependence on traditional power sources.
The qualification process marks the dawn of a new era for private sector
engagement in Kuwait’s renewable energy landscape.
In recent years, Kuwait has
observed a noteworthy transition towards sustainable and renewable energy
sources, echoing the global initiative to combat climate change and lessen
reliance on fossil fuels. The Kuwaiti government, recognizing the need to diversify
its energy mix, has paved the way for a vibrant and promising renewable energy
market within the country.
A pivotal aspect of Kuwait's
renewable energy journey is solar power, leveraging the nation's abundant
sunlight, making it an ideal candidate for solar energy projects. Substantial
investments in solar infrastructure, including large-scale solar farms and
widespread rooftop solar installations, underscore the government's dedication
to solar energy. Initiatives like the Shagaya Renewable Energy Park exemplify
this commitment, aiming to harness both solar and wind power to fulfill a
significant portion of the country's energy demand.