Ministry, Kuwait Oil Company ink deal for solar energy project

• The MoU empowers Kuwait Oil Company to define technical specifications, interconnection points, panel loads, and other tender details.

• Kuwait’s oil sector is currently moving towards implementing solar projects in the next phase, aiming to produce and provide 3.7 gigawatts of clean energy to the electricity sector by 2031.

Informed sources disclosed to Al-Rai newspaper that the memorandum of understanding between the Ministry of Electricity and Water and the Kuwait Oil Company (KOC) for a solar energy project to generate one gigawatt of electricity is likely to expand.

The project will be executed using a global operator model through an ongoing tender process, with the company procuring the energy under a contract spanning 25 to 30 years.

The sources highlighted that the memorandum of understanding (MoU) will enable Kuwait Oil Company to determine the necessary technical specifications, points of interconnection, loads at each point with solar panels, and other technical details to be incorporated into the tender.

They also added that the project aiming to generate one gigawatt of electricity using solar energy represents the initial strategy devised by the oil sector to mitigate emissions and broaden the energy mix, aligning with the nation’s objective of sourcing 15% of electricity from renewable energy outlets.

Project’s completion before 2030

Sources anticipate the project’s completion before 2030, given that the memorandum falls under the initiatives and projects outlined in Kuwait’s oil sector strategy for energy transformation by 2050. They note that Kuwait Oil Company is tasked and committed to overseeing the majority of these projects due to its leadership in this domain, fulfilling the state’s obligations under His Highness the Amir of Kuwait, Sheikh Mishal Al-Ahmad Al-Jaber Al-Sabah.

Lowest prices, kilowatt sales top priority in KOC’s renewable energy tender

The sources mentioned that priority will be given to the lowest prices that are technically and commercially compatible, as well as to the sale of kilowatts.

They explained that KOC is currently preparing for the tender and screening qualified companies with experience in renewable energy.

The sources identified Chinese, Gulf, American, and European companies, noting that while there is no requirement for an agent, a local partner will be necessary to manage administrative matters.

Meanwhile, informed sources have revealed that the oil sector is currently moving towards implementing similar projects in the next phase, aiming to produce and provide 3.7 gigawatts of clean energy to the electricity sector by 2030/2031. This indicates that the oil sector’s contribution will reach 100% of production for the Ministry of Electricity and Water.

The sources highlighted that the Ministry of Electricity and Water and Renewable Energy has a plan to utilize renewable energy to meet the state’s energy needs and contribute to achieving zero carbon neutrality. They noted that both the oil sector and the electricity sector have plans to implement this, and there is an energy committee that has recently been reconstituted between the ministry and the sector to facilitate collaboration and integration between the two sides.