Kuwait to signed significant agreement for Al-Zour North Power Plant this Sunday
Kuwait's Al-Zour North Power Plant Expansion Moves Forward
Kuwait is set to bolster its national electricity and water supply with the upcoming expansion of the Al-Zour North Power Plant. The Kuwait Authority for Partnership Projects (KAPP) is scheduled to sign a contract for Phases II and III of the project with the ACWA Power consortium on Sunday.
The contracts, signed on August 10-11, 2025, also involve the Gulf Investment Corporation. The total value of these phases exceeds KD1 billion ($3.27 billion), financed by private investors without direct government funding.
The expansion entails the design, financing, construction, operation, maintenance, and eventual transfer of an integrated facility that combines electric power generation with water desalination. Upon completion, the project is expected to generate 2.7 GW of electrical power and produce 120 million gallons of water daily, significantly boosting Kuwait's electricity and water supplies.
The construction timeline is estimated at three years, targeting completion by around 2028. This timeline aligns with Kuwait’s urgent need to address severe electricity shortages and current power cuts implemented since 2024 to manage demand.
The Al-Zour North project is a key part of Kuwait’s broader strategy to stabilize and expand its national grid and water resources, support future development projects, and attract international investment. The involvement of private sector expertise aims to reduce costs, accelerate completion, optimize resource utilization, and enhance operational efficiency.
The Al-Zour North Power Plant is designed to keep pace with increasing demand driven by urban growth and ongoing development projects. Notably, the plant aims to operate with emissions below international limits, demonstrating Kuwait's commitment to environmental preservation.
Key government figures, including Dr. Subaih Al-Mukhaizeem, Minister of Electricity, Water and Renewable Energy, and the Minister of Finance, will attend the signing ceremony. The Al-Rai daily has reported on the signing ceremony, but there is no new information about the reporting in this paragraph.
The expansion is expected to markedly improve electricity service reliability, stabilize the grid, and increase water desalination capacity, thus addressing Kuwait’s growing demand for electricity and potable water while reducing power shortages anticipated before 2028.
In addition to the Al-Zour North Power Plant, Kuwait plans complementary energy projects, including a renewable energy partnership with China focused on the Shagaya project phases III and IV, expected to add 3.2 GW capacity by early 2026 agreements. These projects aim to further enhance Kuwait's long-term energy portfolio.
The Al-Zour North Power Plant project has been approved by the Audit Bureau and the Higher Committee for Partnership Projects. After the turbine phase, there will be a combined cycle phase of 40 months. The electricity production is anticipated to begin by the second quarter of 2028. The construction will commence with a turbine phase lasting approximately 30 months. The Al-Zour North Power Plant project is a critical project in Kuwait.
The Al-Zour North Power Plant expansion, a significant part of Kuwait's national grid and water resources strategy, is set to include financing from the private sector, particularly the ACWA Power consortium and Gulf Investment Corporation, within the realm of science and finance.
Upon completion, this environmental-science project, which combines energy-efficient electrical power generation with water desalination, will increase Kuwait's industry capabilities, addressing power shortages and improving the country's environmental standing.
