As part of the Kuwait Government’s efforts towards achieving its -renewable energy goals set in the Kuwait Vision 2035 and Kuwait’s strategy for renewable and sustainable energy for the years 2030 – 2050, the Minister of Electricity, Water and Renewable Energy, H.E. Dr. Salem Alhajraf recently announced several initiatives that include:
Residential Rooftop Solar Power: The government is exploring the possibility of enabling Kuwaiti citizens to install solar power generating systems on the rooftops of their homes, from which the Government would subsequently purchase the generated power. The payment for this power would be in the form of either credit to the electricity account of the residence owner or cash. This innovative approach, which represents a significant step towards privatising renewable energy production, not only promotes green energy but also provides a tangible benefit to the Kuwaiti citizens, either through credit to their electricity accounts or cash.
Establishing a Dedicated Electricity and Water Regulatory Authority: The process of the establishment of a dedicated authority for electricity and water has been initiated. This development is expected to reshape the landscape of the power and water sectors in Kuwait, and would entail several regulatory changes that would hopefully accelerate the achievement of the clean energy goals of the Kuwait Vision 2035.
Renewable Energy Goals: Kuwait is aiming to source 30% of its energy requirements from renewable energy sources by 2030, with an ambitious target of sourcing 50% of its energy requirements from renewable energy sources by 2050. This bold move showcases Kuwait’s confidence in its efforts to transition to clean energy.
Complementing the above initiatives is the recent announcement by KAPP of the launch of the Request for Proposals (RFP) stage for the development and operation of Az Zour North IWPP Project Phases 2 and 3. It is planned that the Project will utilize a blend of liquefied and high-pressure natural gas to deliver at least 2,700 MW of electricity and 120 MIGD of desalinated water to supply the national electricity grid and water transmission network.
The successful transition to the RFP stage, following considerable anticipation, marks a pivotal step in bolstering Kuwait’s energy and water infrastructure. The Request for Qualifications (RFQ) stage for this project had previously been cancelled and relaunched by the KAPP in May 2023 after KAPP and the Ministry of Electricity, Water and Renewable Energy decided to re-assess the carbon emissions output of this project, in light of Kuwait’s ratification of the Paris Accords and its commitment to reducing global carbon emissions.
Our Firm, prides itself in its expertise in assisting the government of Kuwait, state-owned companies, investors, lenders and advisors with clean energy endeavours in Kuwait and we recognise the crucial role of renewable energy in shaping a sustainable economy and cleaner environment in Kuwait. We remain committed to providing effective legal assistance to our clients involved in the energy sector and to helping them navigate the intricacies of Kuwait’s regulatory landscape.
Please contact Ibrahim Sattout (Partner) and Akusa Batwala Tuma (Partner) to see how we can help you Go Further along your business journey in the area of infrastructure and project development.
#ASAR #GoFurther #KuwaitLaw #BahrainLaw #RenewableEnergy #KuwaitVision2035 #MENA
