Kuwait to Partner with China on USD 800 Million Solar Power Project

Kuwait is advancing its renewable energy agenda by planning solar power projects in collaboration with Chinese partners.

The initiative, valued at over USD 800 million, involves the construction of Shagaya 3 and 4 solar power plants, which will operate under the Independent Power Producer (IPP) model.

The plants will be developed through a joint venture between the governments of Kuwait and China, alongside a local Kuwaiti company listed on the stock exchange.

According to local media reports, Kuwait Investment Authority (KIA), the country’s sovereign wealth fund, has prepared a comprehensive report on the project. Ownership will be shared, with Kuwait and China each holding 42.5 percent and the local company owning the remaining 15 percent. The joint venture will handle financing, construction, operations, and maintenance of the facilities. Energy generated from the project will be sold to the Kuwaiti Ministry of Electricity through a long-term supply agreement.

The Shagaya project, located approximately 100 kilometers west of Kuwait City, spans an area of over 84 square kilometers. This ambitious project underscores Kuwait's commitment to diversifying its energy portfolio and adopting sustainable practices. The collaboration with China highlights the Gulf nation's increasing focus on leveraging international partnerships to achieve its renewable energy goals. 

It may be mentioned that Kuwait has been making strides in renewable energy, with significant projects and plans underway to diversify its energy portfolio and meet carbon neutrality goals by 2060. One of the key initiatives is the Shaqaya Renewable Energy Project, which aims to generate a total capacity of 4,500 MW across four phases using solar, photovoltaic, and wind energy. This project focuses on reducing government expenditure on electricity, creating jobs, and strengthening Kuwait's clean energy capabilities.

Additionally, the Kuwait Oil Company (KOC) has embarked on a national-level energy transition plan with KBR as an advisor. This includes a strategy for producing 17 GW of renewable energy and 25 GW of green hydrogen by 2050. The plan involves deploying large-scale solar and wind projects with integrated storage and focuses on green hydrogen for domestic and export use​.