The Kuwait Authority for Partnership Projects (KAPP) has signed agreements with Saudi Arabia’s ACWA Power and Gulf Investment Corporation for the second and third phase expansion of the Al-Zour North power plant.
The expansion, valued at more than Kd1bn ($3.27bn), addresses Kuwait’s severe electricity shortages, as reported by Reuters.
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The contracts include the design, finance, construction, operation, maintenance and eventual transfer of an integrated facility that combines electric power generation with water desalination capabilities.
The Al-Zour North project is expected to generate 2.7GW of electrical output alongside 120 million gallons of daily water production through advanced combined-cycle technology.
KAPP director general Asmaa Al-Mousa stated that the expansion project, which is anticipated to take three years, will be financed by investors rather than government funds.
Ministry of Electricity, Water and Renewable Energy Undersecretary Adel Al-Zamel stated that Kuwait anticipates a substantial enhancement in its electricity services with the upcoming launch of several major projects, including a collaboration with China.
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By GlobalDataSince 2024, the government has implemented scheduled power cuts in certain areas to manage demand.
Al-Zamel told reporters: “If [the projects] go according to plan, by 2028 our situation will be much better.”
He announced that Kuwait anticipates finalising an implementation agreement with China by early 2026, focusing on phases three and four of the Shagaya renewable energy project, which will have a combined capacity of 3.2GW.
In July 2025, ACWA Power entered into agreements and memoranda of understanding (MoU) with international partners to establish a green hydrogen and renewable energy export value chain linking Saudi Arabia and Europe.
These collaborations reflect Saudi Arabia’s dedication to improving global logistics connectivity.
