Global investors eye Kuwait’s power crisis as opportunity

Kuwait’s looming energy crisis has sparked the interest of international developers and investors, who have submitted several proposals to build power plants using the independent power producer (IPP) model.

Under this model, the government would be exempt from construction costs and would instead purchase the generated electricity at a price agreed upon between the investor and the Ministry of Electricity and Water.

According to sources familiar with the matter, the ministry has received six proposals from international developers and investors in recent months to build conventional and solar power plants to address the expected energy shortage in the coming years. The sources stressed that most of the proposed projects would not impose any costs on the state budget, with the exception of purchasing the generated electricity at prices agreed upon between the ministry and the investor.

The sources added that these proposals have not yet been subjected to comprehensive studies, and no decision has been taken regarding them. They noted that IPP projects, which are used in most countries around the world, do not require any government funding during the implementation phase and can be executed quickly.

The sources believe that the government, represented by the Ministry of Electricity and Water, can address the energy shortage by implementing IPP projects and transforming the ministry into a corporation. They praised the efforts of the Minister of Electricity and Water and Renewable Energy, Dr. Salem Al-Hajraf, in this regard.