KUWAIT CITY, Aug 19: Kuwaiti officials have revealed that several energy-saving initiatives proposed by international developers to address the country's electricity crisis have remained unaddressed for over a year, despite their significance in mitigating the energy shortage, reported Al-Qabas newspaper.

According to sources, eight international companies had presented proposals to the Ministry of Electricity and Water under the independent supplier system, offering to provide energy and water at a competitive price, with no cost to the state. However, these proposals have yet to be acted upon.

One such initiative was from the Norwegian company Scatec, which proposed the construction of a solar power station with a capacity of 1,300 megawatts at no cost to Kuwait. The proposal was overlooked, leading Scatec to instead sign a contract with the Egyptian government to build a 5,000-megawatt solar power station, causing Kuwait to lose a major global developer and investor.

The sources emphasized that many Gulf countries and others worldwide have successfully collaborated with experienced global and local developers to build power and water production facilities at no cost under the independent supplier system. These countries have developed long-term strategic plans to secure energy for over 15 years, attracting foreign investors and avoiding electricity shortages due to well-planned energy policies.

Concerns were raised about the potential risks to Kuwait's economy and the welfare of its citizens if the country fails to secure adequate electricity for new housing and oil sector projects. The inability to provide sufficient power could have severe implications for these critical sectors.

The sources also pointed out that Kuwait's existing power stations are aging, inefficient, and costly to maintain. The country needs to establish a new power station with a capacity of at least 1,000 megawatts annually to meet the growing demand, replacing outdated facilities to ensure efficient and reliable energy production. They noted that the lack of backup power for emergencies further exacerbates the situation.

The increasing demand for energy presents a significant challenge, requiring substantial budgets to build new power generation and water desalination plants, whether through the Ministry of Electricity or the Partnership Authority. Meanwhile, neighboring Gulf countries have successfully enlisted global and local developers to construct such facilities at no cost under the independent supplier system.

Additionally, the Ministry of Electricity and Water relied on the Gulf connection this summer to address part of the electricity shortage, highlighting Kuwait's lack of strategic energy security. In contrast, most Gulf countries have developed their own capabilities to ensure energy self-sufficiency.

The sources also revealed that a law to establish the Public Electricity Corporation was drafted 12 years ago but has yet to be enacted due to opposition, despite approval from all relevant authorities, including regulatory bodies.

Given the urgency of the situation, the sources stressed the need for a practical mechanism to attract global investors and developers for power generation and production plants, as outlined in Decree No. 207 of 2023 and Cabinet Resolution No. 995 of 2023. These regulations permit the Ministry of Electricity, Water, and Renewable Energy to purchase energy from external suppliers according to ministry-established procedures.

To further enhance energy security, the sources urged cooperation with the Direct Investment Promotion Authority under Law No. 116 of 2013 to attract global developers for water generation and production stations. Cabinet Resolution No. 995 of 2023 mandates the implementation of several key generation stations under the independent supplier system, including:

1. Al-Khiran Station
2. Al-Zour North Station
3. Al-Shaqaya Solar Power Station
4. Nuwaiseeb Station
5. Al-Abdaliah Solar Power Station

The sources concluded that had a proposal from an international developer to build a solar power station two years ago been accepted, Kuwait might have avoided the current power outages. They stressed the necessity of immediately contracting international investors to build modern, efficient power generation and desalination plants in North Al-Zour, Al-Khairan, Al-Nuwaiseeb, and Al-Subiya, replacing outdated facilities with those that consume less fuel and produce fewer carbon emissions.