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Kuwait & Lebanon: update on renewable energy projects in progress

  • United Kingdom
  • Energy and infrastructure

01-08-2018

KUWAIT

Background

As part of vision 2030, His Highness the Amir of the State of Kuwait, Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah has stated that 15% (approximately 2.5GW) of Kuwait’s electricity must be sourced from renewable energy by 2030. In light of this increasing focus on renewable energy, the following is an update on the ongoing projects in Kuwait.

Al Dibdibah solar plant

Further to our briefing on 31 July 2017 on this project, this project involves the construction of a 1,000MW photovoltaic solar plant and was tendered by the Kuwait National Petroleum Company as a part of the Shagaya renewable energy complex. Although the project was expected to be awarded in 2018, the prequalification process for the main contract is currently ongoing and we now understand the award and final signing is anticipated for early 2019. There is a list of pre-qualified companies that is publically available. Please let us know if you want us to share that with you. 

Az-Zur North 2 & 3 and Al Khairan

The State of Kuwait, through the Kuwait Authority for Partnership Projects, in collaboration with the Kuwaiti Ministry of Electricity and Water, has requested expressions of interest (“EOI”) from international and local participants for the Az-Zour North Phases 2 & 3 (Combined) and Al-Khairan Phase 1 projects (the "Projects", each a “Project”). The Projects, which are combined cycle gas turbine power plants with desalination capabilities, will be issued as public private partnerships to further reinforce Kuwait’s power generation and water production capacities as part of vision 2030.

The Az-Zour North 2 & 3 (Combined) project is expected to be run on LNG as its primary fuel and gas oil as a backup fuel, providing a minimum of 2700 MW of additional power and at least 165 MIGD of desalination.

The Al-Khairan project will be the first phase of a major power generation and water production complex that will be developed over three phases at the Al-Khairan site which is expected to provide a total capacity of 5,400 MW and around 125 MIGD of desalination. This Project includes the development of shared facilities, including but not limited to a seawater intake and outfall, fuel pipelines, fuel receiving and metering stations, 400 Kv Substation and common site infrastructure that will be used by subsequent phases of the Project.

The deadline for submissions of EOI for the Projects is 12:00PM (Kuwait Time) on Sunday, 18 November 2018.

LEBANON

Background

Lebanon currently has a maximum electricity-generation capacity of 2,000 megawatts (MW), far less than a 2017 summer peak demand of 3,400 MW. With this substantial shortfall of electricity capacity, the Lebanese Government is looking to renewable energy sources to narrow and eradicate this deficit.

Upon our recent verification with the Ministry of Energy and Water in Lebanon (“MOE”), we have now been informed of two things by the MOE relating to the solar and wind projects mentioned below: (1) the land for the projects must be found by each bidder, as the Government will have no involvement in the provision of the land; and (2) there will also be no specific Government guarantee to the PPA.

300MW Solar + Storage.

Following a call for EOIs issued in April 2018, the Lebanese Centre for Energy Conservation (LCEC)’s has received 75 responses. The list of firms who have pre-qualified is not yet public. A subsequent call for those that have pre-qualified to provide actual proposals is expected to be released in December 2018.  

Round II wind 

Following a call for EOIs issued in January 2018, a list of pre-qualified firms has been issued. The list of pre-qualified firms is available if you would like us to share that with you. The subsequent request for proposals to those that have pre-qualified is expected to be issued in September 2018.

However, with the uncertainty caused by the recent change in Government and the MOE, there is a risk that the Round II wind project and the 300MW solar and storage project may be further delayed beyond the dates set out above. 

Round I wind

In November 2017, the Lebanese council of ministers granted permits for three wind farms in Akkar to Sustainable Akkar (60MW), Hawa Akkar (60MW), and Lebanon Wind Power (80MW) following a call for EOIs, an RFP, an evaluation by an inter-ministerial committee and a joint proposal by the Minister of Finance. The Power Purchase Agreement was signed by each of these entities in February 2018.

If you would like to discuss the above, any other clean energy opportunities in Kuwait and Lebanon, or the market generally, please contact the team below.

For more information contact

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