Kuwait cancels 1.5GW solar tender

Kuwait cancels 1.5GW solar tender

16 Jul 2020

Kuwait's government has cancelled the tender for the 1.5GW Al-Dibdibah solar project, more than 15 months after bids were submitted. Kuwait is planning for renewable energy to contribute 15 per cent of its total energy production by 2030.



Kuwait’s government has cancelled the tender for the 1.5GW Al-Dibdibah solar project, more than 15 months after bids were submitted.

A statement on the official state website Kuwait News Agency (Kuna) said that the cabinet had cancelled the tender due to the Covid-19 coronavirus and its impact on oil and financial markets.

The client for the project, Kuwait National Petroleum Company (KNPC) received bids in April 2019 for the scheme, which was planned to be developed under an engineering, procurement and construction plus finance (EPC+F) contract.

The Metallurgical Corporation of China had submitted the lowest bid of 11.2 fils a kilowatt hour (fils/kWh) for the project, which is equivalent to $cents3.64/kWh.

Bidders and submitted tariffs were:

Metallurgical Corporation of China, 11.2 fils/kWh

Al-Mulla Group (local), 12.7 fils/kWh

China Communications Construction Company: 13.507 fils/kWh

Gopco General Gulf Contracting: 13.8 fils/kWh

Alghanim International Trading & Contracting (local)/ Maessa Telecommunications (Spain) / Ingenieria (Spain): 13.823 fils/kWh

Shanghai Electric (China), 14.506 fils/kWh

CCC (Lebanon) / Prodiel (Spain) / Orascom (Egypt) / TBEA (China), 17.1 fils/kWh

The 1.5GW project was the planned second phase of Kuwait’s Shagaya renewable energy development, which is planned to contain almost 4GW of renewable energy capacity by 2030. The third phase is planned to have a capacity of 2GW.

Under the first phase of the Shagaya project, 70MW of renewable energy capacity, 50MW CSP solar and 10MW of both PV solar and wind, has already been installed through a pilot programme.

Kuwait has set a target for clean energy to contribute 15 per cent of total installed capacity by 2030.

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