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Wednesday, December 11, 2024
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Kuwait signs contract for 250 MW expansion at Al-Subiya station

Kuwait to boost energy by 17,350 MW with $16.5B investment, 30% renewable

publish time

13/11/2024

publish time

13/11/2024

Kuwait signs contract for 250 MW expansion at Al-Subiya station
Dr. Mahmoud Boushehri, Minister of Electricity and Water with Alghanim International Company chairman during the signing of contract.

KUWAIT CITY, Nov 13: Dr. Mahmoud Boushehri, Kuwait’s Minister of Electricity, Water, and Renewable Energy, signed a contract on Tuesday with Alghanim International Company to expand the Al-Subiya Power Plant, increasing its production capacity by 250 megawatts (MW). The project, valued at approximately KD 118 million (around USD 384 million), is a foundational step in strengthening Kuwait’s electrical infrastructure, following approval from regulatory authorities.

In a press statement, Dr. Boushehri highlighted the ministry's ongoing efforts, announcing that the tender process is underway for Phase IV of the Al-Subiya Power Plant expansion, which will add up to 900 MW. Additionally, he noted that the tender process for the North Al-Zour Power Plant’s second and third phases, with a combined capacity of 2,700 MW, is nearing completion. Bids have been received by the Public-Private Partnership Authority (PPPA), with final preparations underway to award the contract. The ministry, in collaboration with the PPPA, is also advancing tender documents for the Al-Khairat Power Plant, projected to generate 1,800 MW.

On the renewable energy front, Minister Boushehri reported that six companies have qualified to work on the Shaqaya Station’s second and third phases, which will produce 1,700 MW, under joint efforts by the Ministry and the PPPA. Further, the Ministry of Electricity is working with the Ministries of Foreign Affairs and Finance to secure a long-term partnership with China for establishing the Abdaliyah and Shaqaya stations’ fourth and fifth phases, expected to provide an additional 3,400 MW of renewable energy.

Dr. Boushehri added that the ministry, alongside the Ministry of Finance and the Kuwait Direct Investment Promotion Authority, is finalizing legal requirements to set up two new power generation stations in Abdali and Nuwaiseeb, with a combined capacity of 6,600 MW under the future producer (supplier) system.

Over the next five years, Kuwait’s electricity production capacity is anticipated to grow by 17,350 MW, with renewable sources comprising 30 percent. Total investment is expected to reach around KD 5 billion (USD 16.5 billion), with private sector involvement exceeding 90 percent. As new stations become operational, some older facilities will be phased out due to high operating costs and diminishing economic viability. (KUNA)