Day: May 2, 2025

Kuwait has long been synonymous with oil wealth, but in recent years the government has set ambitious targets to diversify its energy mix. According to the International Energy Agency, Kuwait aims for renewables to comprise 15 percent of its electricity generation by 2030, up from just 0.1 percent in 2021, signaling a major policy shift away from its fossil-fuel dominance. Scaling the Al Shagaya Solar PV Project At the forefront of this push is the Al Shagaya Renewable Energy facility in western Kuwait. In early 2025, the Kuwait Authority for Partnership Projects launched a request for qualifications to install a further 1.1 GW of solar capacity there, marking the third phase of a project originally conceived to leverage the region’s abundant sunshine and public–private partnerships. Vision 2050: Renewables and Green Hydrogen Looking further ahead, Kuwait Oil Company has commissioned a renewables and hydrogen masterplan that targets developing 17 GW of renewable generation and 25 GW of green hydrogen production by 2050. This dual strategy aims to meet domestic industrial demand with low-carbon hydrogen and create new export markets for green molecules. Institutional Reforms Fuel Momentum Structural changes are also underway: in January 2023, Kuwait announced plans to corporatize its Ministry of Electricity, Water & Renewable Energy, transforming it into a self-governing entity designed to improve efficiency, mobilize private financing, and phase out subsidies that have historically strained public finances. Navigating Challenges and Partnerships Despite rapid demand growth—temperatures surged to 38 °C in early April 2025, prompting short-lived power cuts—Kuwait is forging strategic partnerships to bolster capacity. Alongside importing LNG under a deal with QatarEnergy, the government is negotiating a framework with China to develop roughly 3 500 MW of renewables, aiming to avoid future shortages and smooth the transition to cleaner energy sources Conclusion Kuwait is transforming its energy landscape by accelerating renewable deployment and green hydrogen. Through the Al Shagaya Renewable Energy facility, it plans to install over 1.1 GW of solar capacity, leveraging abundant sunlight and public–private partnerships. National targets now envision renewables supplying 15 percent of electricity generation by 2030, up from near-zero years ago. Concurrently, a 2050 masterplan calls for 17 GW of renewables and 25 GW of green hydrogen, positioning Kuwait as a hydrogen exporter. Institutional reforms, including corporatizing its electricity and water ministry, are designed to attract private investment and enhance efficiency, while international collaborations ensure the kingdom meets demand sustainably.