The Kuwait Authority for Partnership Projects (KAPP) and the Ministry of Electricity & Water & Renewable Energy (MEWRE) will begin the Al Dibdibah Power and Al Shagaya Renewable Energy (Phase III) Zone 1 Solar PV Independent Power Project. RFQs have been dispatched to developers and developer consortia, inviting them to participate in this groundbreaking venture.
The winning consortium will shoulder a multitude of responsibilities, encompassing development, financing, design, procurement, engineering, construction, testing, commissioning, operation, maintenance, and eventual transfer of the key project assets. Situated within the Jahra Governorate, approximately 100 kilometers west of Kuwait City, the project’s geographic location strategically situates it for optimal solar energy generation potential.
Once operational, the Al Dibdibah Power and Al Shagaya Renewable Energy project will boast an impressive net power capacity of 1,100 megawatts (MW), making it a pivotal contributor to Kuwait’s energy landscape. Its output will be seamlessly integrated into Kuwait’s electricity grid and transmission network, facilitating the distribution of renewable energy across the country.
A pivotal aspect of the project’s viability lies in the secured Power Purchase Agreement (PPA) with MEWRE. This agreement, spanning a robust 30-year term, solidifies MEWRE’s role as the off-taker, ensuring stability and predictability in revenue streams for the consortium.
KAPP’s objective is to harness the private sector’s prowess and expertise to deliver maximum value for money and uphold service quality standards. This collaborative approach underscores the government’s commitment to fostering public-private partnerships that drive innovation and efficiency in the energy sector.
Guiding the project’s strategic and operational facets are esteemed advisory firms. Ernst & Young, serving as the lead and financial advisor, brings unparalleled insights into financial structuring and risk management. DLA Piper, the legal advisor, provides indispensable legal counsel to navigate complex regulatory frameworks. Additionally, DNV, the technical and environmental advisor, ensures adherence to stringent environmental standards and technical specifications.
Al Dibdibah Power and Al Shagaya Renewable Energy project symbolize Kuwait’s resolute commitment to sustainable development and energy diversification. By leveraging private sector collaboration and cutting-edge technology, Kuwait is poised to emerge as a regional leader in renewable energy deployment, driving economic growth and environmental stewardship simultaneously.
