As part of its ongoing efforts to diversify its energy mix and expand renewable energy capacity, Kuwait is moving forward with the launch of the Al Dibdibah Power and Al Shagaya Renewable Energy (Phase III) Zone 2 project. The Kuwait Authority for Partnership Projects (KAPP) has invited prequalification applications for this major initiative, which will be developed under a public-private partnership (PPP) model.

The proposed 500-megawatt (MW) solar photovoltaic (PV) project will follow a design, finance, construct, operate, maintain, and transfer (DFCOMT) model and will be supported by a 30-year power purchase agreement (PPA) with the Ministry of Electricity, Water and Renewable Energy (MEWRE). The prequalification submission window will be open from May 18, 2025, to July 24, 2025.

Located in Shagayah, in the Jahra Governorate—approximately 100 kilometers west of Kuwait City—the project is expected to play a key role in helping Kuwait meet its renewable energy targets and reduce reliance on conventional power sources.

This prequalification announcement follows the earlier prequalification for Al Dibdibah and Al Shagaya Phase III Zone 1, a larger 1,100 MW solar energy project. The shortlisted consortia for Zone 1 were announced on July 30, 2024, and include major international and regional players such as TotalEnergies Renewables with Trung Nam Construction Investment Corporation, ACWA Power with Alternative Energy Projects Company, and Masdar with Fouad Alghanim & Sons General Trading and Contracting, among others.

KAPP and MEWRE are being advised by Ernst & Young as lead and financial advisor, DLA Piper as legal advisor, and DNV as technical and environmental advisor.