Power Grid

Kuwait has recently signed a memorandum of understanding (MOU) with two international companies, AB Transco and its strategic partner General Electric Vernova, to construct a large-scale power plant. This agreement comes at a time when Kuwait is facing challenges in electricity generation, occasionally resulting in power outages.

The Ministry of Electricity, Water, and Renewable Energy confirmed the signing of this MOU in a statement released on January 27, 2025, highlighting the importance of this partnership in addressing the country's energy needs.

The MOU outlines plans for the development of a power plant with a capacity of 3,000 megawatts. It includes the construction of necessary infrastructure, such as gas turbines, a main substation, and essential components like water pipelines, fuel lines, and transmission networks to ensure the effective delivery of electricity.

The Ministry has emphasized that this initiative aligns with Kuwait's future vision and government plans, focusing on involving the private sector in key development projects, particularly in electricity generation through independent providers.

Dr. Mahmoud Abdulaziz Boushahri, Kuwait's Minister of Electricity, Water, and Renewable Energy, explained that the MOU reflects the directives of the country's political leadership. He also pointed out that the collaboration with AB Transco and General Electric Vernova is aimed at enhancing electricity generation in line with Kuwait's long-term goals. The project will involve detailed technical and financial studies, with adherence to international standards for design, construction, and operation, which will be thoroughly reviewed by the Ministry before moving forward.

As part of the agreement, a Kuwaiti joint-stock company will be established to oversee the construction, operation, and maintenance of the new power plant. This company will also have the option of offering shares to the government and public, with an emphasis on employing local labor in line with national employment regulations.

Additionally, the plant will integrate modern technologies designed to minimize carbon emissions, aligning with global environmental standards. Once all necessary approvals are obtained, the power purchase agreement (PPA) will be finalized, ensuring that the new facility meets Kuwait’s growing electricity demands.