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Drop in Kuwait's Energy and Water Contracts Occurs in 2025

Energy and water contracts awarded in Kuwait see significant decline in 2025, valuing at $633 million by early August, in comparison to $2.6 billion in 2024 and $2.7 billion in 2023. The water sector takes a severe hit, with only $11 million in contract awards, a stark decrease from $93 million.

In 2025, energy and water contracts in Kuwait experience a significant decrease.
In 2025, energy and water contracts in Kuwait experience a significant decrease.

Drop in Kuwait's Energy and Water Contracts Occurs in 2025

After a decline in contracts awarded in 2025, the energy and water sectors in Kuwait are showing signs of recovery. Despite the drop in contract values, strategic initiatives and partnerships are driving the sectors towards long-term sustainability and stability.

Diversification and Operational Advancements in the Energy Sector

Kuwait has set ambitious targets for renewable energy, aiming for 30%, 40%, and 50% of its energy mix by 2030, 2040, and 2050, respectively [1]. This shift towards renewables is a key driver for the sector's long-term sustainability and environmental benefits. The full operationalization of the Al Zour Refinery in 2023 signifies a significant improvement in refining capabilities, enhancing Kuwait's position in the global energy landscape [1].

Environmental Initiatives and Technological Advancements in the Water Sector

Kuwait is investing in sustainable water technologies such as solar-powered desalination and advanced wastewater reuse systems. These innovations help maintain high per-capita water consumption while aiming to reduce dependence on fossil fuels [4]. The government is also exploring public-private partnerships to ensure a resilient water supply chain, mitigating risks from energy costs and geopolitical factors [4].

Strategic Projects and Sectoral Adjustments

Despite the drop in contract values, projects like the separation facility at GC-25 and water injection facilities scheduled for completion in 2027 indicate ongoing investment in energy infrastructure [2]. The decline in contracts may reflect a shift towards more strategic and targeted investments, focusing on efficiency and sustainability rather than quantity.

Renewable Energy and International Partnerships

Agreements have been made with Qatar and China to secure LNG supplies and boost renewable energy capacity in Kuwait. Tenders have been issued for the Dabdaba and Shagaya solar projects, key steps toward producing 22.1 gigawatts of renewable energy by 2030 in Kuwait [5].

Infrastructure Development and Collaboration

The Ministry of Electricity, Water and Renewable Energy in Kuwait approved bids for the fourth phase of the Subbiya Combined Cycle Power and Desalination Plant, which will add 900 megawatts of generating capacity [6]. Alghanim International submitted the lowest offer at $1.7 billion for this phase. The Al-Zour North power and water plant, once developed, will have a capacity of 2,700 megawatts and 120 million imperial gallons of desalinated water production daily [7].

Other large-scale projects are also underway, including the Nuwaiseeb Integrated Water and Power Plant, the refurbishment of the West Doha Power Plant, and the resumption of operations at the Shuaiba North facility [8]. Furthermore, a new electricity transmission link to Iraq is being established.

In conclusion, Kuwait is leveraging technological advancements, strategic partnerships, and environmental initiatives to drive recovery in its energy and water sectors, positioning itself for long-term stability and sustainability.

  1. Embracing sports as a means of promoting health and sustainability, Kuwait is planning to build state-of-the-art sports facilities with renewable energy sources, merging sports and renewable energy sectors.
  2. To encourage a holistic approach towards environment preservation, the government is also exploring partnerships with sports associations and eco-friendly sports technology companies, aiming to host green sports events in Kuwait, fostering a culture of sustainability through sports.

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