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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Taqa H1 profit rises 9.7% to AED4.1bn13 August 2026
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Kuwait selects developer for Shagaya zone one plant13 August 2026
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Adnoc Gas receives contractor prices for Ewec sales pipeline13 August 2026
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Oman plans seven factories to localise transformer parts13 August 2026
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Taqa H1 profit rises 9.7% to AED4.1bn13 August 2026
Abu Dhabi National Energy Company (Taqa) has reported a 9.7% year-on-year increase in net income attributable to shareholders to AED4.1bn ($1.12bn) for the first half of 2026.
The Abu Dhabi-listed utilities company said higher contributions from its utilities businesses offset lower oil and gas earnings following the planned decommissioning of UK North Sea assets.
Taqa reported revenue of AED27.5bn ($7.5bn) for the six months to 30 June, down 2.6% from AED28.2bn ($7.68bn) in the same period last year. Earnings before interest, tax, depreciation and amortisation (Ebitda) increased 7.7% year-on-year to AED11bn ($3bn), from AED10.2bn ($2.78bn).
Capital expenditure increased 38% year-on-year to AED7.2bn ($1.96bn), reflecting continued investment across power, water and transmission networks. Free cash flow fell to AED4.6bn ($1.25bn) from AED7bn ($1.91bn) in the first half of 2025, largely because of the higher investment.
Taqa’s board also approved a second-quarter interim dividend of 0.8 fils a share, totalling about AED899m ($245m).
Power and water projects
During the first half of 2026, Emirates Water & Electricity Company (Ewec) awarded the 2.6GW Taweelah C independent power project (IPP) to a consortium led by Taqa, which holds a 60% stake.
The project is intended to support grid stability and enable the large-scale integration of renewable energy into Abu Dhabi’s power system through 2050.
Taqa and Abu Dhabi National Oil Company (Adnoc) also signed a 27-year utilities purchase agreement to provide utilities to the Taziz Industrial Chemicals Zone in Ruwais.
In the water sector, Taqa Water Solutions, Etihad Water & Electricity (EtihadWE) and Saur International signed a long-term agreement with the Ras Al-Khaimah government to develop a 60,000-cubic-metre-a-day wastewater treatment plant.
The plant will be the emirate’s largest wastewater treatment facility and will serve up to 300,000 people.
Taqa, Ewec, Masdar, EDF Power Solutions and Jinko Power also completed an $870.75m (AED3.2bn) green bond issuance to refinance the Al-Dhafra solar photovoltaic IPP.
Masdar expansion
Taqa said it continued to expand its international renewable energy exposure through its 43% stake in Masdar. This included Masdar’s binding agreement in April to establish a $2.2bn joint venture with TotalEnergies covering onshore renewable energy projects across Asia.
The developer also signed an agreement with Repsol to acquire a 49.99% stake in a €849m, 705MW operational renewables portfolio in Spain. The portfolio has potential for a further 565MW of hybridisation capacity.
Additionally, Masdar secured contracts for difference for 3GW of new offshore wind capacity across the Dogger Bank South projects in the UK.
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Kuwait selects developer for Shagaya zone one plant13 August 2026

A consortium of Abu Dhabi Future Energy Company (Masdar) and Kuwait’s Fouad AlGhanim & Sons has been selected for a contract to develop the 1.1GW Al-Dibdibah power and Al-Shagaya renewable energy phase three, zone one independent power project (IPP).
Kuwait’s first utility-scale solar photovoltaic (PV) plant is being procured by Kuwait’s Ministry of Electricity, Water & Renewable Energy (MEWRE), through the Kuwait Authority for Partnership Projects (Kapp).
According to a source, China’s Aiko Energy, Yingli Energy Development and Hengdian Group DMEGC Magnetics have been selected to supply PV modules.
Another Chinese firm, Sungrow, will supply the project’s PV inverters, the source said.
As MEED understands, the Masdar-led consortium will export the plant’s electricity output to the national grid under a 30-year power-purchase agreement with the ministry. The contract also includes the construction of an associated 400kV transmission substation.
Financial bids for the developer’s contract were opened in July, with MEED exclusively reporting that the Masdar consortium had emerged as a frontrunner for the contract after making “the most competitive” offer.
In January, MEED reported that three developer consortiums had submitted bids for the project. Kapp previously issued the request for proposals in June 2025.
London-headquartered consultancy firm EY is the lead and financial transaction adviser. The UK’s DLA Piper is the legal adviser, while Norwegian engineering services firm DNV is the client’s technical and environmental adviser.
Zone two
Kuwait aims to have a renewable energy installed capacity of 22,100MW by 2030 as part of the 20-year strategy announced in March 2025 and ending in 2050.
In July, MEED exclusively reported that at least three consortiums had submitted bids for Al-Dibdibah power and Al-Shagaya renewable energy phase three, zone two IPP, which will have a capacity of 500MW.
The Al-Dibdibah power and Al-Shagaya complex is located within the administrative boundaries of Kuwait’s Jahra governorate, west of Kuwait City.
The zone two scheme is the fourth renewable energy project to be developed under Kuwait’s public-private partnership programme.
Kapp opened bidding for the zone two IPP in September last year. The winning bidder will design, finance, construct and maintain the project.
Similar to the 1.1GW zone one project, EY and DLA Piper, together with DNV, are advising the client on the zone two solar IPP.
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Contractors prepare prices for Al-Ghubar field facilities project13 August 2026

Contractors are preparing commercial bids for a key Petroleum Development Oman (PDO) project to build a new facility to handle additional oil production from the Al-Ghubar field in the Ghaba Salt Basin at Qarn Alam, within its Block 6 concession area.
The Al-Ghubar gas-oil gravity drainage (GOGD) facility will be designed as a sour (hydrogen sulphide) facility and is expected to handle maximum oil production of 1,800 standard cubic metres a day (cm/d), a maximum total water flow rate of 10,421 standard cm/d, and maximum gas lift of 256,934 standard cm/d. Production from the planned Al-Ghubar GOGD facility will be exported to PDO’s main oil line.
Majority state-owned PDO floated the tender for the Al-Ghubar GOGD facility project in March, setting an initial bid submission deadline of 4 May, MEED previously reported.
PDO later extended the deadlines for submission of technical and commercial bids to 26 July and 7 August, respectively. Contractors submitted technical proposals by the revised deadline, according to sources.
Following receipt of the technical bids, PDO has granted contractors additional time – until 16 August – to submit commercial bids for the project, sources told MEED.
The following contractors, among others, are understood to be bidding for the project:
- Archirodon (Greece)
- Engineering for the Petroleum & Process Industries (Egypt) / Petrojet (Egypt)
- Jereh (China)
- Kent (UAE)
- Larsen & Toubro Energy Hydrocarbon (India)
The scope of work on the Al-Ghubar GOGD facility project covers the engineering, procurement and construction (EPC) of the following:
- On-plot scope consists of:
- Production separator
- Test separator
- Concentric wash tank
- Wet oil pump
- Water bath heater
- Surge tank
- Gas injection/gas lift compressor (centrifugal)
- Utilities (Instrument Air compressors, chemical injection skids, drain system, vent system)
- Suction scrubber
- Air coolers
- Discharge scrubbers
- Condensate flash drum
- Atmospheric pressure knock-out drum
- Flare system
- Gas heater
- Water disposal pump
- Oil shipping pump
- New 132kV substation and plant substation (housing 6.6kV & 415-Volt switchboard)
- New control room
- Off-plot scope consists of:
- Off-plot pipeline network (bulk header, test header, gathering infrastructure/ gathering line header, instrument air header, water disposal header)
- Two remote manifold stations
- Tie-in connection to main oil line
- Tie-in to gas network pipeline
PDO previously intended to tender the Al-Ghubar GOGD project under its framework structure with selected EPC contractors, but eventually tendered it separately.
PDO is the operator of the Block 6 hydrocarbons concession in Oman, which is the sultanate’s largest and most prolific concession. Situated onshore and covering an area of 75,119 square kilometres, Block 6 contains 202 oil fields and 43 gas fields, with PDO producing a total of approximately 680,000 barrels a day (b/d) of oil and condensates from those fields.
The Omani government holds a 60% stake in PDO through Energy Development Oman (EDO). The other shareholders are UK-based Shell (34%), France’s TotalEnergies (4%) and Thailand’s state-owned PTTEP (2%).
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Adnoc Gas receives contractor prices for Ewec sales pipeline13 August 2026

Contractors have submitted bids to Adnoc Gas for a new pipeline that it plans to build to supply gas from the Habshan scraper launcher station at its Habshan gas compression complex to the Al-Nouf customer receiving station (CRS), for delivery to Emirates Water & Electricity Company (Ewec).
The proposed 56-inch pipeline, stretching 127 kilometres, will help the UAE’s state utility, Ewec, meet additional gas demand to power the second phase of an artificial intelligence (AI) data centre in Abu Dhabi, as well as to support the relocation of some of its key assets in the Mirfa area of the emirate.
Adnoc Gas, the natural gas processing business of Abu Dhabi National Oil Company (Adnoc Group), issued the tender in mid-April for the project, officially titled ‘Ewec Mirfa relocation + AI data centre phase 2: Habshan to Al-Nouf pipeline’.
Contractors submitted technical bids for the project in late May, while commercial bids were submitted on 3 August, sources told MEED.
According to sources, the following contractors, among others, are understood to have submitted bids:
- Arkad Engineering & Construction (Saudi Arabia; part of Italy’s Arkad SpA)
- China Petroleum Pipeline Engineering (China)
- Galfar Emirates (UAE branch of Oman’s Galfar Engineering & Construction)
- Kalpataru Projects International (India)
China Petroleum Pipeline Engineering has performed front-end engineering and design (feed) work on the project.
The planned pipeline will provide two sales-gas streams to Ewec: 600-660 million cubic feet a day (cf/d) for AI data centre phase 2, and 650-715 million cf/d for the Mirfa relocation project.
The core elements of the project involve engineering, procurement and construction (EPC) of the main Habshan-to-Al-Nouf pipeline and the following associated units:
- 56-inch scraper (pig) launcher (607-V-604) and associated hot tap
- Four block valve stations (BVSs -637-BVS-01/02/03/04)
- 56-inch scraper (pig) receiver (848-V-101)
- CRS at Al-Nouf including sales gas filters, pressure regulating stations (PRS), custody transfer metering systems (CTMS)
- 30-inch tapping to Ewec plants (cold tie-ins)
- 52-inch tie-ins between Adnoc Gas’ Maximise Ethane Recovery & Monetisation (Meram) project and package 3 of its broader project to upgrade its sales gas pipeline network across the UAE, also known as Estidama.
Adnoc Gas business
Adnoc Group announced the creation of Adnoc Gas through the merger of its subsidiaries Adnoc Gas Processing and Adnoc LNG in November 2022. Adnoc Gas began operating as a commercial entity on 1 January 2023.
The consolidation of Adnoc’s gas processing and liquefied natural gas (LNG) operations into Adnoc Gas has created one of the world’s largest gas-processing entities, with a processing capacity of about 10 billion standard cubic feet of gas a day at eight onshore and offshore sites, which include its Asab, Bab, Bu Hasa, Habshan and Ruwais plants.
The company also owns a 3,250km gas pipeline network to supply feedstock to its customers in the UAE. This sales gas pipeline network is being expanded to over 3,500km through the estimated $3bn Estidama project.
At present, the network delivers sales gas to Adnoc Group companies, Ewec, Dolphin Energy, Emirates Global Aluminium (EGA), and other industrial consumers in Abu Dhabi, Dubai, Sharjah and the Northern Emirates.
The main critical facilities and/or manifolds of the Adnoc Gas sales-gas pipeline network are as follows:
- Habshan gas compressor plant
- Thammama-C manifold
- Maqta manifold
- KM-42 station
- Taweelah gas compressor plant
Additionally, Adnoc Gas will also acquire its parent Adnoc Group’s 60% share in the Ruwais LNG terminal project at cost in the second half of 2028. UK energy producer BP, Japan’s Mitsui & Co, UK-based Shell and French energy producer TotalEnergies are the other shareholders in the project, holding 10% stakes each.
Adnoc Gas recently announced it is executing a capital expenditure (capex) budget of $28bn for 2026 to 2030, reaffirming the spending plan it previously committed to for the period.
As part of that capex plan, Adnoc Gas said it achieved final investment decision (FID) on the second and third phases of its Rich Gas Development (RGD) programme earlier this year.
The company awarded $8.2bn of EPC contracts for the second and third phases of the RGD programme. These relate to the construction of a new gas processing train at the Habshan complex and a natural gas liquids (NGL) fractionation train at the Ruwais gas processing facility, respectively.
Adnoc Gas detailed its capex plan as part of a media roundtable to discuss its financial results for the second quarter of the year (Q2 2026).
The company achieved net income of $665m in Q2 2026 – above the upper end of the $400m-$600m guidance range provided in the first quarter.
Supported by its cash flow from operations, the company’s board has approved a quarterly dividend of $940m, payable in September, in line with its commitment to deliver annual dividend growth of 5% through 2030.
The detailed scope of work on the Ewec Mirfa relocation + AI data centre phase 2: Habshan to Al-Nouf pipeline project covers the following:
- 56-inch sales gas pipeline from Habshan to Ewec Al-Nouf plant:
- The new 56-inch sales gas pipeline from Habshan to Al-Nouf CRS, covering 127km, will supply sales gas to Ewec plant. Majority of the pipeline route is through the Sabkha area (approximately 100km) and will be routing parallel to existing pipeline facilities. FOCs shall be laid on both sides of the pipeline. Approximately 30 NDRCs (mostly micro tunneling) are envisaged for this pipeline.
- The 56-inch pipeline is envisaged with four block valve stations 647-BVS-01-04 based on the pipeline location class study.
- The pipeline shall be provided with scrapper launcher at Habshan (located in Estidama package 3 scrapper launcher plot) along with 48-inch hot tap tie-in at the gas source point (on existing 56-inch supply line manifold) and scraper receiver at Al-Nouf CRS for pipeline cleaning and inspection.
- Habshan outlet battery limit, available battery limit pressure is 39 – 41.5 barg.
- At Al-Nouf CRS the tie-in pressure requirement is minimum 25 barg downstream of the CRS facilities at the tie-in point to Al-Nouf plant.
- Maximum pressure during line pack condition is 41.5 barg.
- Facilities at Al-Nouf CRS:
- 56” Scraper Receiver with Scrapper Handling Trolley and Jib crane. Both CRSs shall be identical in design and size.
- The battery limit pressure at tie-in connection to Al-Nouf is 25 barg.
- Electrical and Instrumentation (E&I) building and fire point shelter.
- Permanent power supply to CRS from Ewec or Taqa and associated facilities.
- AI data centre phase 2 project – CRS 1:
- Sales gas filters (duty + standby configuration)
- Custody transfer metering skid (duty + standby configuration)
- Pressure regulating skid (duty + standby configuration)
- Gas chromatograph, hydrocarbon dew point analyser inside AC shelter
- Flow limiting control valves with bypass control valves
- 30-inch cold tie-in to AI data centre phase 2.
- Mirfa relocation – CRS 2:
- Sales gas filters (duty + standby configuration)
- Custody transfer metering skid (duty + standby configuration)
- Pressure regulating skid (duty + standby configuration)
- Gas chromatograph, hydrocarbon dew point analyser inside AC shelter
- Flow limiting control valves with bypass control valves
- 30-inch cold tie-in to Mirfa relocation power plant.
- 52-inch jump over between Meram and Estidama package 3:
- A 52-inch interconnection including ROV and associated facilities shall be provided between Meram 56” sales gas pipeline tie-in and Estidama package-3 56-inch pipeline tie-in. 52-inch piping to be installed on the existing / new pipe rack to cross the existing pipeline corridor. Cold tap Tie-ins on both existing pipeline is envisaged to install this jump-over connection.
- The existing Meram plot or Estidama package 3 plot at 8.2km shall be extended to install the new ROV and associated facilities.
- The new 52-inch ROV and associated facilities shall be connected to the Meram area existing systems and suitable modification and integration with SMC/telecommunication systems shall be performed by the EPC contractor.
- Necessary adequacy checks shall be performed on the piping structures, supports, plots, systems, as applicable.
- Electrical and instrumentation buildings:
- E&I building type 1 at Al-Nouf CRS.
- Block valve station (BVS) shall be provided with hybrid cooling shelter for equipment installation in case solar power system is to be adopted. If power source available nearby, electrical and instrumentation building (type 2) is to be provided.
The duration of EPC works on the project is 31 months from the award of contract.
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Oman plans seven factories to localise transformer parts13 August 2026
Oman has signed 10 agreements worth an expected RO15m ($39m) to localise the manufacture of key electrical transformer components typically used in power transmission and distribution projects.
The agreements were signed on 12 August under the Authority for Public Services Regulation in cooperation with Muscat-headquartered Voltamp Energy.
They cover the establishment of seven new factories, which will manufacture eight essential electrical transformer components.
Two existing factories will also add production lines to manufacture a further two components.
The agreements were signed with four local small and medium-sized enterprises and six local and international companies.
It is understood that local firms Al-Mahri Industrial Enterprises, Al-Maha Ideal Solutions and United Engineering Services are among the companies participating in the programme.
The projects are expected to occupy a proposed total area of 34,000 square metres, with commercial production scheduled to start in 2027.
In March, state utility Nama Power & Water Procurement (PWP) said it expects the renewable energy share to increase steadily, reaching 16% in 2028 and 21% in 2029 before rising to 30% in 2030. This compares to about 4% in 2024.
To support the sultanate’s renewable energy expansion, about 70 transmission projects are expected to enter service between 2026 and 2030, according to the Oman Electricity Transmission Company’s Five-Year Annual Transmission Capability Statement.
The localisation initiative is intended to strengthen domestic supply chains and reduce reliance on imports amid global supply risks and market fluctuations.
READ THE AUGUST 2026 MEED BUSINESS REVIEW – click here to view PDFSaudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.
Distributed to senior decision-makers in the region and around the world, the August 2026 edition of MEED Business Review includes:
> WORLD CUP: What the 2026 World Cup means for Saudi Arabia 2034> MARKET FOCUS: Maghreb fortunes diverge> INDUSTRY REPORT: GCC banks prove resilient amid turmoil> LEADERSHIP: Private capital and the GCC infrastructure inflection> INTERVIEW: Developers look beyond standalone solarTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/18398112/main.jpg