Saudi Arabia’s ACWA Power Acquires Engie’s Energy Assets in Kuwait and Bahrain for $693 Million
In a strategic move to bolster its presence in the Gulf region, Saudi Arabia’s ACWA Power has announced the acquisition of energy assets from French utility company Engie in Kuwait and Bahrain. The deal, valued at $693 million, encompasses significant stakes in power generation and water desalination facilities, marking a substantial expansion for ACWA Power in the Middle East.
Details of the Acquisition
The agreement includes the transfer of Engie’s shares in several key projects:
- Az Zour North One Independent Water and Power Project (IWPP) in Kuwait: ACWA Power will acquire an 18% stake in this facility, which has been operational since 2016. Az Zour North One contributes approximately 10% of Kuwait’s power capacity and 20% of its water desalination capacity, producing around 1,539 megawatts (MW) of electricity and 107 million gallons (approximately 405,000 cubic meters) of water per day. en.newsroom.engie.com
- Bahrain Projects: The acquisition includes a 45% stake in both the Al Ezzel and Al Dur power plants, as well as a 30% stake in the Al Hidd facility. These assets collectively enhance ACWA Power’s footprint in Bahrain’s energy sector.
In total, the acquired assets represent an operating capacity of 4.61 gigawatts (GW) of gas-fired power generation and 1.11 million cubic meters per day of water desalination capacity. The deal also encompasses the associated operations and maintenance companies responsible for these facilities.
Strategic Implications
This acquisition aligns with ACWA Power’s strategic objectives to expand its influence in the Gulf Cooperation Council (GCC) region and to play a pivotal role in the energy transition by providing reliable and sustainable power and water solutions. By consolidating its presence in Bahrain and entering the Kuwaiti market, ACWA Power is positioning itself to meet the growing energy and water demands of these countries.
Marco Arcelli, CEO of ACWA Power, stated, “We consolidate our presence in Bahrain, where we are already a reliable supplier of power and water, and we enter Kuwait, where we recently submitted a bid for a … .”
The move into Kuwait is particularly noteworthy, as it marks ACWA Power’s inaugural entry into the Kuwaiti energy market. This expansion is expected to provide a platform for further growth opportunities in the region.
Operational and Financial Impact
The integration of these assets is anticipated to enhance ACWA Power’s operational capabilities and diversify its portfolio. The acquired facilities are equipped with advanced technologies that ensure efficient and environmentally friendly operations, aligning with global best practices in the energy sector.
Financially, the acquisition is set to contribute positively to ACWA Power’s revenue streams. The long-term contracts associated with these assets provide stable and predictable cash flows, which are essential for sustaining growth and delivering value to stakeholders.
Regulatory Approvals and Future Outlook
Completion of the transaction is subject … stakeholder approvals. Both ACWA Power and Engie are working closely with the relevant authorities to ensure a smooth transition and to address any regulatory requirements.
Looking ahead, this acquisition positions ACWA Power to capitalize on the increasing demand for energy and water in the GCC region. The company’s strategic investments underscore its commitment to supporting the region’s infrastructure development and to contributing to the broader goals of energy security and sustainability.
In summary, ACWA Power’s $693 million acquisition of Engie’s energy assets in Kuwait and Bahrain represents a significant milestone in the company’s expansion strategy. By enhancing its operational footprint and diversifying its portfolio, ACWA Power is poised to play a crucial role in meeting the evolving energy and water needs of the Middle East.
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