Kuwait Power: Report Q3 2014

Business Monitor International
July 30, 2014
52 Pages - SKU: BMI5305306
Countries covered: Kuwait

Kuwait Power: Report Q3 2014

BMI View: Kuwait's first public-private partnership for the construction of the 1.5GW al-Zour power plantand desalination plant has the potential to set a precedent for greater private sector engagement withinKuwait's infrastructure and power sectors. The country, which relies almost entirely on conventionalthermal sources for electricity generation, has suffered from power shortages in recent months. Withdemand for power likely to continue rising rapidly in the years ahead, the government is keen to spuradditional investment in the sector. That said, Kuwait's business environment remains challenging forinternational investors, and we question the timely realisation of the project given the barriers still left toovercome.

Conventional thermal sources will remain the dominant fuel for electricity generation in Kuwait over thecoming years. Following the Fukushima tragedy in 2011, Kuwait ordered the National Nuclear EnergyCommittee to be dissolved and officially abandoned its pursuit of nuclear power. However, the country isnevertheless aiming to reduce its domestic oil consumption in an effort to free up additional barrels forexport, with many power projects that are planned or under construction set to use gas.



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