Against the backdrop of accelerating global energy structure transformation, Kuwait is promoting the large-scale development of renewable energy through systematic bidding. In 2025, the country officially launched the bidding process for the "AlDibdibah Power and AlShagaya Renewable Energy Phase III - Region 2 Project". This 500 MW solar photovoltaic project will effectively promote Kuwait's goal of diversifying its energy structure and mark an important step in the country's development of renewable energy.

Specific arrangement and operation mode of project bidding

The project is jointly initiated by the Kuwait Partner Project Management Authority, the Ministry of Electricity, Water Resources and Renewable Energy, and the Kuwait Academy of Sciences. It is located in the Shagaya Renewable Energy Park in Jehra Province, which has excellent solar energy resource conditions. At present, the bidding documents have been officially released and have been delivered to 6 consortia that have passed the pre qualification review and 3 independent enterprises. According to the bidding arrangement, all interested bidders are required to submit complete bidding documents before 12:00 noon Kuwait time on February 16, 2026. The project will operate under a 30-year power purchase agreement model, with the Ministry of Electric Power, Water Resources and Renewable Energy as the designated purchaser, providing long-term stable acquisition guarantees for the electricity generated by the project. This arrangement creates clear and reliable revenue expectations for investors and reduces project operational risks.

Strategic positioning of the project in the overall planning

The 500 MW project tendered this time is an important component of the overall development plan for Shagaya Renewable Energy Park Phase III. It is worth noting that in the development plan of the same park, the larger Phase III No.1 area photovoltaic independent power generation project is also being promoted simultaneously, with an installed capacity of 1100 megawatts. The bidding deadline has been extended to January 15, 2026. The linkage and promotion of these two projects demonstrate Kuwait's overall strategy of systematically expanding renewable energy installed capacity through a combination of standardized competitive bidding mechanisms and long-term power purchase agreements. This phased and large-scale development model not only ensures the robustness of project progress, but also accumulates valuable experience for the development of subsequent renewable energy projects.

The strategic significance of the project for Kuwait's energy transformation

The implementation of this project is an important measure for Kuwait to continuously promote the diversification of energy structure and enhance the sustainability of the power system. By inviting multiple domestic and foreign companies that have undergone strict pre screening to participate in bidding, Kuwait can not only gain sufficient competition in technical solutions and project quotations, but also attract advanced solar deployment technologies and innovative solutions. After the project is completed and put into operation, it will significantly increase the proportion of clean energy in Kuwait's power structure, provide solid support for the country to achieve its renewable energy development goals, and further enhance the reliability and stability of the power supply system, better meeting the growing demand for electricity for people's livelihood and industry. From a broader regional perspective, the advancement of this project will consolidate Kuwait's important position in the development of renewable energy in the Gulf region, laying a solid foundation for its transition to a sustainable energy system. Editor/Yang Beihua