Kuwait has officially launched the tender process for the Al-Khairan Phase 1 Independent Water and Power Producer (IWPP) project. The 1.8 GW initiative will expand national capacity through a public-private partnership and strengthen investment in the Al-Khairan Phase 1 project.
The facility, located around 100 kilometers south of Kuwait City, will generate electricity using LNG and high-pressure natural gas, with gas oil as backup. In addition, the project will include water desalination, contributing to Kuwait’s growing demand for power and water supply. Officials explained that the tender covers design, financing, construction, operation, maintenance, and eventual transfer of the plant.
The Ministry of Electricity, Water and Renewable Energy is cooperating with the Kuwait Authority for Partnership Projects (KAPP) to oversee the development. Together, they aim to create a reliable framework that ensures long-term efficiency and stability.
The successful developer will form a project company to manage operations under a 25-year agreement. This company will supply both electricity and water directly to the government. According to officials, the Al-Khairan Phase 1 project reflects Kuwait’s push for sustainable infrastructure and stronger collaboration with global partners.
Three major consortia have received invitations to submit bids. Abu Dhabi National Energy Company (TAQA) leads one group, Saudi Arabia’s ACWA Power heads another, and China Power International Holding directs the third. Additional qualified bidders include Nebras Power and Japan’s Sumitomo Corporation, highlighting the international interest in this large-scale venture.
Industry experts noted that competition among leading global energy companies demonstrates the significance of this project. Furthermore, they stressed that the Al-Khairan Phase 1 project will play a key role in diversifying Kuwait’s power generation.
By the end of 2024, Kuwait’s total installed capacity reached 20.3 GW, mainly from thermal power. Gas accounted for 12 GW, while oil contributed 8.5 GW. With rising demand, officials confirmed that projects like Al-Khairan are essential for securing the country’s energy future.
Ultimately, the Al-Khairan Phase 1 project illustrates Kuwait’s commitment to sustainable growth, energy security, and public-private cooperation. This tender marks a significant milestone in shaping the Kingdom’s next phase of development.
