Kuwait is planning to increase its power generation capacity by 14.05 gigawatts (GW) by 2031 to meet rising electricity demand and secure stable supplies. The program includes major projects such as the Al-Zour North power plant phases II and III, the Shagaya renewable energy project, the Khairan power and desalination plant, and the Nuwaiseeb project. The expansion combines conventional and renewable energy sources, using public-private partnerships and international collaborations. These projects are central to Kuwait's strategy to modernize its energy infrastructure and ensure sustainable power for future growth.
Kuwait will add 14.05 gigawatts of power generation capacity by 2031, according to the Minister of Electricity, Water, and Renewable Energy. This expansion is aimed at addressing growing electricity demand caused by population growth, rising temperatures, urban development, and occasional delays in plant maintenance. The government has already imposed planned power cuts in some areas due to these shortages. Despite extreme summer temperatures reaching 51 degrees Celsius, Kuwait managed peak electricity demand better than expected, with a slight 0.17% decrease compared with a projected 4% increase.
The Al-Zour North power plant is a major part of this plan. The second and third phases of the plant will add 2.7 GW to the grid. In August, contracts were signed with a consortium led by Saudi Arabia's ACWA Power and the Gulf Investment Corporation, with a total investment of over 1 billion Kuwaiti dinars (approximately USD 3.27 billion), supported by both local and international banks.
Another significant initiative is the Shagaya renewable energy project. Its first and second phases, with a combined capacity of 1.6 GW, will be built under a public-private partnership model. The third and fourth phases will add an additional 3 GW, developed in collaboration with Chinese partners. These efforts are aimed at integrating renewable energy into Kuwait's power mix and reducing reliance on conventional power sources.
The Khairan power and water desalination plant is also part of the plan, with its first phase expected to add 1.8 GW under a public-private partnership scheme. Bidding for this project opened to pre-qualified consortiums in September, and it is expected to strengthen both electricity and water supply capacities.
The Nuwaiseeb project will contribute a total of 7.2 GW in multiple phases. Some parts of this project are scheduled for completion beyond 2031 and will extend into the following decade, ensuring long-term capacity growth.
These projects collectively form a key part of Kuwait's strategy to enhance energy infrastructure, improve efficiency, and maintain reliable electricity supply for both residential and industrial needs. The combination of conventional and renewable energy projects demonstrates Kuwait's efforts to meet rising demand while also supporting sustainable development goals.
Source Reuters
5th Jun, 2025
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