BMI View : Significant changes are on the cards in the Kuwaiti power sector as the government attempts to spur investment into the country's ageing infrastructure. The government has earmarked USD9.9bn for infrastructure projects including power and progress is being made on greenfield thermal and renewable projects. The electricity and water ministry is aiming to approximately double generating and desalination capacity by 2017 to cater to growing demand and an estimated USD2.5bn is expected to be invested over the medium term .
Latest Updates And Structural Trends
Kuwait's finance ministry has given approval for building a series of power plants, desalination facilities and other infrastructure projects totalling about KWD3bn (USD9.9bn). The planned projects will boost capacity by nearly 3,580MW besides waste treatment and developments for the education ministry. The projects include construction of a second phase of the gas-fired Al-Zour North power and desalinated water plant that has an initial capacity of 1,800MW, first phase of the Khairan power plant with 1,500MW of capacity and the Al Abdaliyah power plant with a capacity of 280MW. The ministry has not set a timeline for the projects, except for the sewage plant that will start by 2020. It has also not provided any information regarding funding beyond stating 50% of the funds will be raised through stock market offerings.
The Kuwait Authority for Partnerships Projects (KAPP) has prequalified seven bidding groups to develop the Al-Khairan independent water and power project (IWPP) at the AlKhairan site on the Arabian Gulf coast in Kuwait. The shortlisted bidders are Abengoa; a consortium of International Company for Water and Power and Al Mulla Group Holding Company; Korea Electric Power Corporation; a team of Marubeni Corporation and Fouad Alghanim & Sons Group of Companies; Mitsubishi Corporation; Mitsui & Co; and Sumitomo Corporation. The winning bidder will be required to design, engineer, build, own, operate, maintain and transfer the facility for 25 years. The project will include a conventional thermal steam power plant with a minimum capacity of 1,500MW and a seawater desalination plant with a minimum capacity of 125mn imperial gallons per day.
Spanish engineering and construction company TSK signed a contract worth KWD116mn (USD383.7mn) in September 2015 to construct a 50MW solar park in Kuwait, reports Agence France Presse. The solar park, to be built in the Shagaya desert zone, is slated to begin electricity generation in December 2017, according to the Kuwait Institute for Scientific Research's Energy Research Head Salem al-Hajraf.
The Kuwait Institute for Scientific Research (KISR), which is spearheading much of the country's drive to invest in renewable energy, has launched three projects to produce power from renewable energy sources. The projects include a thermal station with capacity of 50MW, a photovoltaic solar station with capacity of 10MW and a wind power station with a capacity of 10MW. The government has also announced it intends to build a 70MW solar power facility in the Al-Shaqaya area, to become operational by 2016. Additionally, the country aims to build 100 new solar-powered fuelling stations by 2020, at a rate of 20 per year.
During the period 2015-2024, Kuwait's overall power generation is expected to reach 95.3T terawatts (TWh). Driving this growth are annual gains in gas-fired and oil-fired generation, with the former expected to outpace the latter as the government looks to focus the power sector on gas in an effort to free up oil for export.
|e/f = BMI estimate/forecast. Source: EIA, UN Data, BMI|
|Generation, Total, TWh||63.885||66.152||69.143||72.021||75.175||78.305||81.413|
|Consumption, Net Consumption, TWh||54.7||56.9||59.4||62.1||65.0||67.9||70.8|
|Capacity, Net, MW||16,498.5||18,107.5||18,597.1||19,126.6||19,692.2||20,355.1||20,918.0|
The Kuwait Power Report features BMI Research's market assessment and independent forecasts covering electricity generation (coal, gas, oil, nuclear, hydro and non-hydro renewables), electricity consumption, trade, transmission and distribution losses and electricity generating capacity.
The Kuwait Power Report also analyses the impact of regulatory changes, recent developments and the background macroeconomic outlook and features competitive landscapes comparing national and multinational operators by sales, market share, investments, projects, partners and expansion strategies.
- Use BMI's independent industry forecasts for Kuwait to test other views - a key input for successful budgeting and strategic planning in the power market.
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BMI Industry View
Summary of BMI’s key industry forecasts, views and trend analysis, covering power markets, regulatory changes, major investments, projects and company developments.
Industry SWOT Analysis
Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the power sector and within the broader political, economic and business environment.
BMI’s Power Forecast Scenario
Forecasts to end-2024 for all key indicators, supported by explicit assumptions, plus analysis of key downside risks to the main forecasts:
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- Transmission and Distribution Losses: Electric power transmission and distribution losses.
- Trade: Total imports and exports.
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- Electricity Capacity: Capacity net, conventional thermal, nuclear, hydropower and non-hydroelectric renewables.
BMI’s Power Risk Reward Index
BMI’s Risk Reward Indices provide investors (power companies, service companies and equity investors) looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide indices of highest to lowest appeal to investors,
Structure, size and value of the industry sector; overview of the industry landscape and key players; an assessment of the business operating environment, sustainable energy policies, pricing and the latest regulatory developments.
Key Projects Database
Details and analysis of all current and planned developments (new ventures, capacity expansion and other investments) across the sector broken down by location, sector type, capacity, value, companies and operational status.
Illustration of the power industry that exploits our data-rich, in-depth analysis of the leading players in the sector and examination of operational results, strategic goals, market position and the potential for investment.
Power Outlook long-Term Forecasts
Regional long-term power forecasts covering electricity generation, consumption and capacity for thermal, hydroelectric and nuclear power. These are supported by a country specific overview, alongside an analysis of key downside risks to the main forecasts.
Providing BMI’s near-term economic outlook for the region as a whole, as well as taking a close look at countries of particular interest and the latest trends and developments.
The Power Market Reports draw on an extensive network of primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports, including Energy Information Administration (EIA), World Bank (WB) and United Nations (UN).