The scope of the project encompasses the development, financing, design, procurement, engineering, construction, testing, commissioning, operation, maintenance, and eventual transfer of the solar PV plant. Once operational, the plant will supply electricity to Kuwait's national grid under a 30-year power purchase agreement with MEWRE as the sole offtaker.
KAPP has appointed Ernst & Young as the lead and financial advisor, DLA Piper as the legal advisor, and DNV as the technical and environmental advisor for the project. Interested companies and consortia are required to submit their responses to the Request for Qualification by 24 July 2025.
This initiative aligns with Kuwait's strategic objective to diversify its energy sources and reduce reliance on fossil fuels. The country aims to generate 15% of its electricity from renewable sources by 2030. The Al Shagaya Renewable Energy Park, which also includes the Al Dibdibah Power Project, is central to this goal. The park is being developed in multiple phases, with the current tender focusing on Phase III – Zone 2.
The project's location in the Jahra Governorate offers optimal solar irradiance, making it suitable for large-scale solar energy generation. The integration of this 500MW capacity into the national grid is expected to enhance energy security and support Kuwait's commitments to environmental sustainability.
The PPP model adopted for this project reflects Kuwait's broader strategy to attract private sector investment in infrastructure development. By involving private entities in the financing and operation of renewable energy projects, the government aims to leverage external expertise and capital while mitigating public expenditure.
The Al Shagaya Renewable Energy Park has been a focal point of Kuwait's renewable energy initiatives. Previous phases have incorporated various technologies, including solar thermal and wind energy, to create a diversified energy mix. The addition of this 500MW solar PV project is anticipated to significantly contribute to the park's overall capacity and the nation's renewable energy output.
Kuwait's commitment to expanding its renewable energy portfolio is further evidenced by its collaboration with international partners. The involvement of global advisory firms in this project underscores the country's intent to adhere to international standards in project execution and environmental compliance.
As the deadline for RFQ submissions approaches, interested parties are expected to prepare comprehensive proposals demonstrating their technical and financial capabilities. The selection process will evaluate the qualifications of applicants to ensure the successful delivery and operation of the solar PV plant.
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Kuwait