Kuwait has signed major agreements worth $3.27 billion to advance phases two and three of the Al-Zour North power plant. The Kuwait Authority for Partnership Projects (KAPP) finalized the contracts with Saudi Arabia’s ACWA Power and the Gulf Investment Corporation.
The deals mark a key step toward solving Kuwait’s electricity shortages. KAPP Director General Asmaa Al-Mousa confirmed that private investors, not the government, will finance the entire cost of these phases.
The Al-Zour North power plant will deliver 2.7 gigawatts of electricity and 120 million gallons of water daily once completed. The project will use advanced combined-cycle technology to improve efficiency. Furthermore, construction will take three years, with work expected to progress rapidly after this signing.
Officials say the power plant of the Kuwait initiative represents one of the country’s largest infrastructure ventures. During the ceremony, Adel Al-Zamel, Undersecretary of the Ministry ofter, and Renewable Energy, Electricity, Wa expressed optimism about the project’s impact. He explained that several ongoing energy projects will together strengthen the country’s electricity supply.
Since last year, Kuwait has implemented planned power cuts in some areas to manage high demand. Authorities believe the Kuwait power plant project will help reduce such measures once new capacity comes online.
Kuwait is also collaborating with China on other large-scale energy developments. Al-Zamel mentioned a significant project at Shagaya focused on renewable energy. Phases three and four of this initiative aim to generate 3.2 gigawatts of clean power. The government hopes to sign an implementation agreement with China in early 2026.
Moreover, the combination of conventional and renewable energy projects will diversify Kuwait’s energy mix. Officials expect that by 2028, electricity services will improve significantly, reducing shortages and improving reliability for residents and businesses.
Industry analysts view the Kuwait power plant project as a strategic move that strengthens energy security. It will also attract foreign investment, generate jobs, and promote technology transfer into the country’s utility sector.
With major contracts now signed, Kuwait is moving closer to achieving its long-term energy goals. This project demonstrates the government’s commitment to modernizing infrastructure and ensuring stable power supply for the future.
