The Kuwait Authority for Partnership Projects (KAPP) has signed contracts with Saudi Arabia’s ACWA Power and the Gulf Investment Corporation for phases two and three of the Al-Zour North power plant. The combined value of these two phases exceeds KWD 1bn (approximately US$3.3bn). Once completed, the Al-Zour North project will have a net electricity generation capacity of at least 2.7 GW, based on combined-cycle technology, and a net desalinated water production capacity of no less than 120 million imperial gallons per day (MIGD).
Under a 25-year offtake agreement, the ACWA Power-led consortium will design, finance, build, operate, maintain, and eventually transfer the plant and its associated infrastructure, under a Build-Operate-Transfer (BOT) model. A project company will be established, with the consortium holding a 40% stake, while KAPP will retain the remaining 60% of the share capital. The plant is expected to become fully operational by 2029.
As of the end of 2024, Kuwait’s total installed capacity stood at 20.3 GW, almost entirely based on thermal power, comprising 12 GW from gas and 8.3 GW from oil.