Warming erodes Kuwait’s power and water reserves
14 August 2023
More on Kuwait’s power and water sector:
> IWPP: Firms respond to Kuwait independent utilities request
> POWER: Local firm wins 250MW Subiya package
> PRIVATISATION: Kuwait thermal plant privatisation to go ahead

The temperature in Kuwait soared to 51 degrees Celsius on 1 August, sending its electricity load index up to 16,940MW. This breached its maximum expected load this year of 16,830MW by 0.7 per cent.
This year’s projected maximum load is already 4 per cent higher than the previous year's recorded maximum load. It leaves only roughly 8 per cent of reserve capacity against an available capacity understood to stand at 18,250MW.
Similarly, water consumption across the Gulf state on 2 August, when the temperature decreased to 50 degrees, exceeded production by 29 million gallons, prompting the state utility to access its strategic water reserve capacity to plug the shortfall.
The electricity consumption spike reportedly caused two feeders at the country’s main substation south of Surra in the capital to trip, which led to power outages in some parts of Zahra, a district in Kuwait’s Hawalli governorate.
Kuwait’s Electricity & Renewable Energy Ministry (MEWRE) assured the public that the maximum capacity available in the country’s electricity network during the current summer is 18,250MW, as earlier cited, and that it could safely provide up to 17,660MW.
Persistent delays
The following week MEWRE – through the Kuwait Authority for Partnership Projects (Kapp) – received prequalification applications for the contracts to develop Kuwait’s next two independent water and power producer (IWPP) projects.
The two schemes – Al-Zour North 2 & 3 and Al-Khiran 1 – will have a total combined power generation capacity of 4,500MW and a water desalination capacity of over 150 million imperial gallons a day (MIGD), which will go a long way to address Kuwait’s precarious electricity and water supply situation.
Ironically, these two schemes have been in the planning and early procurement stages since 2017 and have suffered significant delays in the intervening period.
It is the second time developers have submitted statements of qualification (SOQs) for the contracts over the preceding 11 months.
The delays have caused major frustration for some developers and contractors. One utility developer that submitted an SOQ in September last year told MEED they did not participate in the latest attempt to start the prequalification process for the IWPP schemes, without elaborating.
Others expect the country’s stakeholders to eventually approve and expedite the procurement process for the integrated power and desalination facilities.
“I’m not very optimistic, but we submitted an SOQ anyway,” another source tells MEED.
EPC projects motoring ahead
The ministry’s conventional power plant projects have been moving at a relatively faster pace. In June this year, the local company Heavy Engineering Industries & Shipbuilding (Heisco) won a contract for the phase 2 upgrade of the Subiya power plant complex in Kuwait.
Heisco saw off competition from two local companies, Alghanim International and Al-Zain United General Trading & Contracting, for the KD114.28m ($372m) contract.
The project aims to convert an existing 250MW simple-cycle plant into a combined-cycle gas-turbine plant.
In April, a consortium comprising Heisco and Japan’s Mitsubishi Power was also awarded a contract to retrofit the main thermal power generation plant at the power complex.
The contract is understood to be valued at KD90.9m. It entails the upgrade of eight steam turbines and electric generators at the Subiya power plant, which is expected to reach a capacity of 2,400MW once the project is complete.
The existing plant at the Subiya power complex was commissioned between 1998 and 2002. This implies that the steam turbines and generators in commercial operation for nearly 20 years require upgrades to continue operating and improve their performance.
Two steps forward
While the country has pledged to become carbon neutral by 2060, the state utility has yet to make any remarkable progress in procuring new renewable energy capacity.
The recent political deadlock has hampered the procurement of the next phases of the Shagaya Renewable Energy Programme (SREP), despite the award 12 months previously of the project’s transaction advisory contract to a team led by London-headquartered consultancy firm EY.
At the time, the advisory contract was understood to cover the Al-Dibdibah solar project, which will comprise SREP’s second phase, and a third phase expected to include a 720MW solar photovoltaic (PV) plant, a 1,150MW concentrated solar power (CSP) facility and a wind power farm.
Notably, two state-backed downstream operators – Kuwait National Petroleum Company and Kuwait Integrated Petroleum Industries Company (Kipic) – have launched a tender for a contract to undertake a pre-feasibility study identifying opportunities to use renewable energy in their operations.
Kuwait is also expected to make some progress on its first utility privatisation scheme, which forms part of the initiative to strengthen private sector participation in the sector.
In December last year, it was revealed that UK-headquartered Deloitte had submitted a low bid of KD1.2m ($3.9m) for the transaction advisory contract in line with the planned privatisation of the $1.26bn North Shuaiba power and water plant in Kuwait.
GCC grid
While working to boost its electricity reserves and make its electricity systems greener, Kuwait stands to benefit from the ongoing upgrade of the GCC electricity grid, through which other GCC states, such as the UAE, may decide to transmit excess clean energy.
The Al-Fadhili high-voltage direct current (HVDC) converter station upgrade in Saudi Arabia is expected to enable the exchange of 1,800MW of electricity between the six states once complete.
In October last year, the GCC Interconnection Authority (GCCIA) awarded India-based KEC International a contract for an overhead transmission line project linking the substations in Wafra in Kuwait and Fadhili in Saudi Arabia.
The estimated $120m project extends an existing double-circuit 400kV line from Al-Zour in Kuwait to Ghunan in Saudi Arabia. The line has an intermediate interconnection at Fadhili, with associated substations completed in 2009 as part of the first phase of the GCCIA network. The new project is expected to complete in 2025.
This month’s special report on Kuwait also includes:
> ECONOMY: Stakeholders hope Kuwait can execute spending plans
> ENERGY: Kuwait’s $300bn energy target is a big test
> BANKING: Kuwaiti banks enter bounce-back mode
> INTERVIEW: Kuwait’s Gulf Centre United sets course for expansion
Exclusive from Meed
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Jordan allows phosphate rail line bidders more time30 January 2026
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Acwa Power to develop $200m solar plant in Philippines30 January 2026
-
Algeria plans Constantine tramway extension30 January 2026
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Dewa desalination plans offer timely boost30 January 2026
-
Projects show resilience in 202630 January 2026
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Abu Dhabi’s National Infrastructure Construction Company (NICC), a subsidiary of Etihad Rail, has allowed contractors until 15 February to submit their proposals for a contract to build the second section of the phosphate railway line that will run from Ghor Al-Safi to Aqaba in Jordan.
The tender was issued on 27 December, with an initial bid submission deadline of the end of January.
The scope of work for the railway includes civil engineering, tunnel construction, and mechanical, electrical and plumbing (MEP) works.
Tendering is also ongoing for the first section of the line. NICC is preparing to award the contract for the first section of the railway line, stretching from Al-Shidiya to Aqaba.
MEED understands that the evaluation is in its final stages and that the contract will be awarded soon.
In April last year, a French-Swiss joint venture of Egis and Arx was awarded the design consultancy contract for the project.
Etihad Rail announced in September 2024 that it had signed a memorandum of understanding (MoU) worth $2.3bn with Jordan’s Transport Ministry and local companies to develop the phosphate railway line.
In an official statement, Etihad Rail said it had signed an agreement with Jordan to build, operate and maintain the project.
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Project history
In 2015, Jordan’s Transport Ministry tendered a contract to construct the Shidiya rail link, intended to transport 6 million tonnes a year of phosphate from mines in Shidiya to Wadi Al-Yutum, near Aqaba.
In November of that year, a joint venture of China Communications Construction Company and the local contractor Masar United was confirmed as the lowest bidder. It was awaiting the formal award to build the 21-kilometre spur line.
The project was subsequently put on hold due to funding issues.
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Acwa Power to develop $200m solar plant in Philippines30 January 2026
Saudi Arabia’s Acwa Power is investing $200m to build a large-scale solar photovoltaic (PV) plant in the Philippines.
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No details were provided on the project’s potential power generation capacity.
The reservation agreement follows a memorandum of understanding (MoU) signed between Acwa Power and BCDA in Riyadh last November.
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Algeria plans Constantine tramway extension30 January 2026

Algeria is planning another extension of its Constantine tramway network, which currently runs from Ben Abdelmalek Stadium in the city centre to the Ali Mendjeli area.
The project client, Algiers Metro Company (EMA), received bids on 14 December last year from consultants for a tender to undertake feasibility and detailed preliminary design studies for the project.
The client had tendered the contract in October.
The current tramway network spans approximately 19.3 kilometres (km).
The tramway is owned by EMA and operated by Societe d’Exploitation des Tramways (Setram), a joint venture of EMA and French firm RATP Group.
The first route of the tramway, with a length of 9km, was commissioned in July 2013, according to GlobalData’s sister company, Railway Technology.
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A 65,000-square-metre ground-level depot serves the fleet for maintenance and train parking.
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Contractors involved
EMA awarded a contract for the tramway line extension to France’s Alstom and the local firm Cosider Travaux Publics consortium in July 2015.
Spanish firm Idom was awarded the detailed design and construction works management, while US-based engineering firm Aecom was responsible for civil engineering and urban planning.
Cital, a joint venture of EMA, Spain’s Ferrovial and Alstom, delivered 24 trainsets to open the first phase of the extension in 2019.
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Dewa desalination plans offer timely boost30 January 2026
Commentary
Mark Dowdall
Power & water editorDubai Electricity & Water Authority (Dewa) is taking early steps towards procuring its second independent water producer (IWP) project, a signal that the utility may be further expanding its role from service provider to long-term utility asset developer.
Consultancy bids were received this week for a pre-feasibility study that will assess capacity and location requirements for a planned seawater reverse osmosis (SWRO) desalination plant.
The project, being pursued with Etihad Water & Electricity (EtihadWE), would build on the 180-million-imperial-gallons-a-day Hassyan IWP, awarded to Saudi Arabia’s Acwa Power in 2024.
It would also align with Dewa’s wider objective to lift Dubai’s desalination capacity to 750 million imperial gallons a day by 2030, from around 495 million today. Achieving that target may require a further pipeline of privately developed water assets between now and then.
A useful point of comparison lies in Saudi Arabia’s power sector. Saudi Electricity Company has increasingly relied on independent power producers over the past decade to accelerate capacity expansion, ease pressure on public capital spending and deepen the project finance ecosystem.
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Unlike Saudi Arabia, the UAE entered 2026 with limited visible momentum in desalination. EtihadWE’s $400m Fujairah SWRO IWP is the only large desalination plant expected to be tendered this year.
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Projects show resilience in 202630 January 2026

While priorities may have shifted over the past two years, the region’s projects market continues to display resilience and will offer opportunities in 2026 in areas including Saudi Arabia’s gigaprojects progamme, regional rail schemes and other strategic sectors.
Despite much having been written over the past two years about the reprioritisation of Saudi Arabia’s gigaprojects, work is continuing.
“They are still going, all the gigaprojects,” says Pierre Santoni, president – infrastructure for Europe, Middle East and Africa (Emea) at US-based Parsons.
“Even Neom, where the slowdown has been widely publicised, we still have people there working on Oxagon, and we still have people on the Line. All the other ones are still ongoing,” he adds. “We just signed a contract to design all the infrastructure around the Mukaab for New Murabba. We have live tenders and are designing the public realm for Diriyah Gate 2. We are on Sports Boulevard, King Salman Park and the expansion of King Abdullah Financial District. All of those are ongoing.”
Another focus for the region is rail. Parsons led the Riyadh Metro Transit Consultants joint venture that project managed the first six lines of Riyadh Metro, which opened in late 2024. “Riyadh Metro was a great success for Parsons and our partners, and all the people involved. That was the original gigaproject. At one point, there were 50,000 workers on Riyadh Metro every day,” says Santoni.
The success of this project, and of earlier schemes such as Dubai Metro and Doha Metro, combined with high-level governmental backing, have given the rail sector in the region unprecedented momentum.
“Rail is a major market in the region at the moment,” says Santoni. “The UAE is a good example – you have the freight railway and the opening of passenger traffic. The high-speed rail project has also started. In Abu Dhabi, the tram on Yas Island was launched last year. In Dubai, the Blue Line is in full construction mode with delivery firmly scheduled for 2029. It is a major undertaking, and the intention of the Roads & Transport Authority is to continue with further extensions, which is much needed given the growth in population.”
Roads and airports are two other areas of focus for Parsons. The company continues to work as the lead consultant for major road schemes in the UAE, and it secured delivery partner roles in 2025 for the airside and landside infrastructure at Riyadh’s King Salman International airport.
Operations and maintenance
The infrastructure market is not just about building new projects. As the region’s infrastructure ages, operations and maintenance (O&M) has become a central pillar of Parsons’ strategy, Santoni notes.
“The game is not just about building new infrastructure; it’s about making existing infrastructure perform better,” he says.
“A lot of O&M considerations are coming to the forefront. We are deploying technology like iNET, which is Parsons’ proprietary intelligent traffic management system. We did the initial feasibility study last year and managed to improve transit times through 320 intersections in Riyadh. We just signed a contract to fully deploy the system.
The game is not just about building new infrastructure; it’s about making existing infrastructure perform better
“It’s not just physical infrastructure; it’s the management of all that through technology-enabled tools.”
Santoni says this technological “brain” is also being applied to the King Salman Park project, which involves developing the world’s largest urban park and requires a highly complex O&M system to manage it effectively. Automated management of soil and water for hundreds of plant species will remove the need for a vast on-site workforce.
Traditionally known for core engineering and transport, Parsons is increasingly recognised for work in other sectors, including hospitality and defence. The firm is currently managing over 30,000 luxury hotel keys in the region, a surge driven by Saudi Arabia’s tourism goals.
“We became recognised, sort of unknowingly, for these complex, niche-type hospitality projects where it’s about preserving heritage and respecting culture, but doing so in the most modern and technologically advanced way possible. This is going to be a very nice market for us in the future,” Santoni says.
“We also signed two major contracts last year for confidential defence clients in Saudi Arabia to deliver infrastructure.”
Capacity crunch
As the industry faces a talent shortage, Santoni highlights Parsons’ internal mobility as a competitive advantage. While competitors have struggled with project transitions, Parsons has focused on relocating staff to sustain its growth.
“We did see a lot of people either exiting Saudi Arabia or relocating within,” Santoni says. “We have been very good at relocating people. This is one of our strengths. When projects changed pace, we made a conscious effort to relocate people, give them options and extend them on the job until something else came up. Last year alone, about 350 people were relocated internally within the region. We are still in hiring mode.”
Being a multidisciplinary firm present in several countries gives flexibility. “In Saudi Arabia, most of Parsons’ work has traditionally been project management consultancy (PMC), although we have had for a number of years now a growing design office in Riyadh with an offshoot in Dammam and one in Jeddah.
“We currently have almost 300 people in our design office in Saudi Arabia, which is slightly less than 10% of our workforce in the kingdom. The rest are doing PMC work. In Dubai, Abu Dhabi, Doha, it’s mostly the more traditional model of design and construction supervision work with some PMC,” says Santoni.
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