Powering Kuwait’s future: Structuring and financing energy projects through PPPs
Kuwait’s energy transition is gaining momentum. In one of the most technical sessions of ASAR Conference 2025, David Charlier, Kunal Singh, Ayman Al-Qattan, Fahad Al-Zuabi, and Ibrahim Sattout examined how Kuwait can structure and finance the power and water projects needed to meet rising demand and deliver long-term sustainability. Their discussion highlighted the opportunities and constraints shaping Kuwait’s next decade of energy development — and the central role of public–private partnerships (PPPs).
Expanding generation capacity through strategic partnerships
The panel outlined Kuwait’s plan to reach 14 GW of installed power capacity by 2031, driven by major projects such as Al-Zour North Phases 2 and 3, the Shagaya Renewable Energy Park, and upcoming power and water initiatives including Al Nuwaiseeb and Al Khairan. These projects represent a balanced approach, combining conventional and renewable sources while enhancing security of supply.
PPPs, they noted, remain a proven model for bringing private-sector expertise and financing into large-scale infrastructure. Kuwait’s structure — which blends government oversight with private investment and participation from Kuwaiti merchants — was recognised as unique in the region and fundamental to enabling effective long-term project delivery.
Financing innovation and the rise of ESG-driven capital
Discussing the financial landscape, the panel emphasised growing investor confidence in Kuwait’s PPP programme. Kunal Singh highlighted the increasing importance of sustainable finance, supported by the Central Bank of Kuwait’s ESG guidance. Green bonds, sustainability-linked lending and broader ESG-aligned financing tools are now gaining traction, reflecting a global shift toward projects that combine economic value with environmental responsibility.
Speakers also noted the need to diversify funding sources to support the scale of Kuwait’s pipeline. Export credit agencies, bond programmes and co-lending structures with government institutions were identified as essential for addressing banking capacity constraints and ensuring bankability.
Regulatory frameworks, governance, and delivery risk
The panel acknowledged that Kuwait has made meaningful progress in standardising procurement and improving the regulatory environment for PPPs. However, challenges remain. These include procurement delays, inter-agency coordination, and ensuring clarity in risk allocation — all of which are critical to attracting serious international and domestic financiers.
Clear governance and predictable regulatory processes, they stressed, will be decisive in converting proposed projects into operational assets.
Towards a balanced, modernised energy mix
The panellists reaffirmed Kuwait’s long-term targets:
- 50% renewable energy by 2050
- Carbon neutrality by 2060
Achieving these goals will require integrating energy storage, digital systems, and data-driven optimisation into the power sector, particularly as demand from energy-intensive sectors such as data centres increases. Technological innovation was identified as a key enabler for reducing intermittency in renewables and improving grid resilience.
Key takeaway
Kuwait’s future energy system will be shaped by the interplay of financial innovation, regulatory coordination, and sustainable partnerships. Delivering this transformation will require not only capital but also consistent execution, institutional alignment, and the continued evolution of Kuwait’s PPP framework.
ASAR advises sponsors, lenders, and developers on structuring and financing energy and infrastructure PPPs, across Kuwait and the wider GCC.
Part of the ASAR Conference 2025 Insights Series: Powering Sustainable Growth in Kuwait.
Read more from the ASAR Conference 2025 Insights Series
