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September 3, 2021updated 02 Sep 2021 4:45pm

Kuwait plans 3,600MW gas-fired scheme

Nuwaiseeb scheme takes country's planned gas-fired and renewable energy capacities to 11.6GW.

By MEED   

Kuwait’s Ministry of Electricity & Water (MEW) has invited firms to bid by 26 September for the consultancy contract for the 3,600MW first phase of an integrated water and power plant in Nuwaiseeb.

The project is expected to be procured as an engineering, procurement and construction (EPC) contract, a source close to the project tells MEED.

The contract calls for a consultant for a project ‘to supply, install, operate and maintain 3,600MW [of] combined-cycle gas turbine units at the Nuwaiseeb site phase one’.

It is the third major scheme being planned in the country, next to the Al-Zour North 2 & 3 independent water and power producer (IWPP) and Al-Khiran 1 IWPP projects, which are being tendered as one contract, as well as the 3,500MW next phases of the Shagaya Renewable Energy Project (SREP).

MEED reported last month that Kuwait Authority for Partnership Projects (Kapp) is expected to issue the request for qualifications between the third and fourth quarters of this year for the contract to develop the planned Al-Zour North 2 and 3 and Al-Khiran 1 IWPP projects.

Kapp also aims to issue the request for proposals for the schemes early next year.

The Al-Zour North 2 and 3 IWPP will merge the previously planned second and third phases, and will have a generation capacity of 2,700MW and desalination capacity of 165 million imperial gallons a day (MIGD).

The Al-Khiran 1 IWPP will have a power generation capacity of 1,800MW and a desalination capacity of up to 125 MIGD.

A team comprising UK-headquartered firms Ernst & Young (EY), Atkins and Addleshaw Goddard was awarded the transaction advisory contract for the two IWPPs in April, two months after Kapp obtained approval from the State Audit Bureau to award the contract.

Rising demand

Kuwait has been under pressure to expand its power generation capacity in light of rising demand.

It was reported that peak power demand in the country reached a record 15.67GW on 28 July. Prior to June, the country’s peak load had never exceeded 15GW.

The accelerating demand threatens to erode the country’s reserve capacity, with actual operational capacity understood to be hovering around 17.5GW, which is significantly lower than the overall installed capacity of 19GW.

MEED: September deadline for renewables role in Kuwait

In May, Kapp invited firms to bid for the consultancy services package for the second and third phases of SREP.

The two phases are expected to have a capacity of approximately 3,500MW, and, depending on the recommendation of the selected transaction advisory team, could be split into several packages.

Energy Transition in the Middle East    

A major new report from MEED looks at how the global shift away from fossil fuels is reshaping energy policy in the Middle East and North Africa, and its impact on business and project investment. 

Learn more about the report here

This article is published by MEED, the world’s leading source of business intelligence about the Middle East. MEED provides exclusive news, data and analysis on the Middle East every day. For access to MEED’s Middle East business intelligence, subscribe here.

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