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Wartsila proposes to develop 1.5GW project in Kuwait

28 August 2024

Finland-headquartered Wartsila has proposed to build a power generation plant with a capacity of 1.5GW in Kuwait under an independent power producer (IPP) model.

According to a local media report, Wartsila has proposed to build the project, which will cost approximately KD425m ($1.39bn), within 18 months to help alleviate the Gulf state's ongoing power crisis.

MEED understands that the Finnish power equipment manufacturer and investor has "presented a comprehensive study on how Kuwait’s electrical system could benefit from its advanced technologies".

The presentation highlighted the company’s systems, which are designed "to reduce fuel consumption, cut carbon emissions, and produce electricity at a fraction of the cost currently incurred by the state".

The proposed power station is expected to be fully financed by the Finnish company.

The cost for generating electricity of around 11 fils a kilowatt offers a competitive rate, depending on factors such as the location and the scope of additional work like extending electrical and fuel networks, the report said.

In addition to financing, Wartsila will be covering the project's implementation, operation, management and maintenance, "with no cost to the state".

Sources in Kuwait are understood to have indicated that no decision has yet been made regarding Wartsila's offer, however.

Kuwait's plans to procure its second independent water and power project, Al-Zour North 2 & 3, has faced delays over the past several years.

Kuwait’s Electricity, Water & Renewable Energy Ministry (MEWRE), through the Kuwait Authority for Partnership Projects (Kapp), expects to receive bids by 30 September for the contract to develop and operate the Al-Zour North 2 & 3 IWPP.

The Al-Zour North 2 and 3 IWPP will merge the previously planned second and third phases. It will have a generation capacity of 2,700MW and a desalination capacity of 120 million imperial gallons a day (MIGD).

Power cuts

Kuwait authorities have been resorting to power cuts since June as electricity demand soared due to temperatures breaching 50 degrees centigrade in many areas.

A power outage on 19 June hit 40 residential areas. The government has since scheduled power cuts lasting up to two hours.

The 19 June electricity supply debacle came a day after Kuwait began receiving 400MW of the 500MW of electricity it had purchased from the GCC regional power grid. 

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Jennifer Aguinaldo

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