The desert sun of Kuwait may soon be powering tens of thousands of homes — as the country moves ahead with its most ambitious solar energy tender yet. On 2 December 2025, the Ministry of Electricity, Water and Renewable Energy (MEWRE), working alongside the Authority for Partnership Projects (KAPP), issued a Request for Proposals (RFP) for a 500‑megawatt (MW) solar photovoltaic (PV) project under the Shagaya Renewable Energy Park.
This big step comes as part of the broader Al Dibdibah Power and Al Shagaya Renewable Energy Phase III — reflecting Kuwait’s growing commitment to clean energy, cutting carbon emissions, and reducing reliance on fossil fuels.
What’s the deal: 500 MW Solar Project at Shagaya
The project will be located within the Shagaya Renewable Energy Park, in the Jahra Governorate — approximately 100 km west of Kuwait City.
Under the RFP:
- The winning bidder (or consortium) will be responsible for designing, financing, building, operating, maintaining — and eventually transferring the solar plant.
- The electricity generated will be exported to national grid and transmission network.
- The project comes with a long-term agreement: a 30‑year Power Purchase Agreement (PPA) with MEWRE as the official offtaker.
Originally announced via a tender launch in May 2025, the project had reached the pre‑qualification phase earlier.
Who’s Bidding: Global Giants in the Race
KAPP invited a mix of international power companies and consortia, as well as a few firms bidding solo, to submit proposals.
Consortia competing include:
- ACWA Power (Saudi Arabia) — with Kuwait’s Alternative Energy Projects Company
- EDF Renouvelables (France) — with Abdullah Al Hamad Al Sagar & Brothers and South Korea’s Korean Western Power Company
- Jinko Power (China / Hong Kong) — with Kuwait’s Combined Group Contracting Company
- Masdar (Abu Dhabi, UAE) — with Fouad Alghanim & Sons General Trading & Contracting Company
- Tianjin Zhonghuan New Energy (China) — with Sinotec Company and Mohammed Abdulmohsin Al Kharafi & Sons
- Swift Current (USA) — with Kuwait-based Arizona National for General Trading & Contracting Company
In addition, a few firms are attempting a solo bid — including TotalEnergies Renewables (France), and two Turkish companies: Limak Yatirim Enerji and Kalyon Enerji.
Such broad international participation suggests strong global confidence in Kuwait’s renewable energy ambitions.
Why It Matters: Beyond Just Another Solar Plant
The significance of this RFP goes deeper than adding another power plant. Here’s why this matters a lot:
Diversifying Kuwait’s Energy Mix
Kuwait has long been dependent on fossil fuels. With projects like the 500 MW plant at Shagaya, the country is signaling a serious shift toward renewables. Gradually, solar energy could reduce reliance on oil and gas for domestic electricity — freeing up hydrocarbons for export or strategic reserves.
Meeting Growing Electricity Demand
Desert heat, population growth, and growing industrial demand have pushed Kuwait’s electricity needs up. Solar power can be deployed faster than traditional fossil‑fuel plants, offering a timely solution. As noted in similar earlier tenders (like a 1.1 GW solar PV tender in June 2025), solar power gives Kuwait a chance to close the supply‑demand gap.
Long‑Term Stability & Private Sector Strength
By issuing an RFP under a 30‑year PPA, Kuwait ensures long-term stability for investors. Involving experienced international utilities and consortiums brings in expertise, financing, and project execution capabilities. As stated by KAPP, the private sector’s involvement is meant to “maximize value for money and service quality.
Environmental Impact & Global Image
A large-scale solar project of this magnitude will help cut carbon emissions, reduce pollution, and showcase Kuwait’s commitment to clean energy — aligning the country with global sustainability goals. For the Gulf region, traditionally dominated by oil, such moves also signal a shift in identity: from fossil‑fuel reliance to embracing renewables.
What’s Next: Timeline & What to Watch
- The RFP was officially issued on 2 December 2025
- Proposals from qualified bidders are to be submitted by 16 February 2026 (12:00 noon Kuwait time).
- Once chosen, the winning bidder will proceed with design, construction, and ultimately the operation of the 500 MW solar PV plant under a 30‑year PPA.
- The generated electricity will be integrated into Kuwait’s grid, helping meet demand and reduce fossil‑fuel dependence.
In parallel, the broader Phase III of Al Dibdibah–Shagaya Renewable Energy project also includes bigger ambitions including other solar zones and possibly battery storage capacities, as part of Kuwait’s long-term renewable roadmap.
What This Means for Kuwait — And the Region
With the 500 MW solar RFP, Kuwait is quite literally betting on the sun. For citizens, this could mean more stable electricity supply, fewer blackouts, and cleaner energy. For the government, a chance to preserve oil wealth by gradually shifting domestic energy consumption to renewables.
For the Gulf region where many countries still rely heavily on fossil fuels — Kuwait’s move may spark a chain reaction. Partnerships with global clean‑energy firms, long‑term PPAs, and large‑scale solar tenders could become more common.
What happens after February 2026 (when bids close) will be critical. Choice of bidder, project cost, execution speed all these will determine whether the project becomes a shining example of Gulf green transition, or just another stalled promise.
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