Updated 29th July 2026- The Al Dibdibah Power and Al Shagaya Renewable Energy Park is a 1,100MW solar independent power project located in Kuwait’s Jahra Governorate, and it has now cleared technical evaluation. Financial bids were opened in mid 2026 after Zawya Projects reported that technical assessment was complete, and MEED has since said a frontrunner has emerged for the Phase III Zone 1 contract.
Al Dibdibah Power and Al Shagaya Renewable Energy Park Award Awaits State Audit Bureau Approval
Only three of the six prequalified bidders ultimately submitted, leaving consortia led by ACWA Power, Masdar and EDF Renewables in contention. Award still requires State Audit Bureau clearance, with a preferred bidder expected during the third quarter. Jahra is filling up fast, the US$3.3 billion North Kabd wastewater plant having been signed in the same governorate in July.
Project Overview
- Project Name: Al Dibdibah Power and Al Shagaya Renewable Energy Phase III Zone 1 Solar PV Independent Power Project
- Location: Shagaya Renewable Energy Park, Jahra Governorate, roughly 100km west of Kuwait City
- Net Capacity: 1,100MW of solar photovoltaic generation
- Project Value: Not publicly disclosed
- Client or Owner: Kuwait Authority for Partnership Projects, in collaboration with the Ministry of Electricity, Water and Renewable Energy
- Main Contractor: Not yet awarded. A preferred bidder is expected in the third quarter of 2026, according to Al Rai
- Key Components: Solar PV plant plus a 400kV power transmission substation
- Procurement Model: Independent power project structure, with a power purchase agreement running 30 years and the ministry as offtaker
- Bidding Timeline: RFP issued June 2025, submission deadline extended from 14 September 2025 to 15 January 2026, technical and commercial bids received January 2026, financial bids opened mid 2026
- Related Infrastructure: Power Grid Company won a KD48.6 million contract, about US$158.7 million, from the ministry for a 400kV overhead line connecting Shagaya to the Wafra transformer station
Project Team
- Procuring Authority: Kuwait Authority for Partnership Projects
- Offtaker and Partner Ministry: Ministry of Electricity, Water and Renewable Energy
- Lead and Financial Adviser: Ernst & Young
- Legal Adviser: DLA Piper
- Technical and Environmental Adviser: DNV
- Approving Body: State Audit Bureau of Kuwait
- Bidding Consortium: ACWA Power with Alternative Energy Projects Company
- Bidding Consortium: Masdar with Fouad Alghanim & Sons General Trading and Contracting
- Bidding Consortium: EDF Renewables with Abdullah Al Hamad Al Sagar and Brothers Company and Korean Western Power Company
- Transmission Line Contractor: Power Grid Company
- Developer: Not yet awarded
Updated 19th June 2025 – Kuwait has advanced its renewable energy ambitions by issuing a Request for Proposal (RFP) for a landmark 1.1 GW solar photovoltaic (PV) project at the Shagaya Renewable Energy Park, located in the Jahra Governorate. The initiative, titled Al Dibdibah Power and Al Shagaya Renewable Energy Park Phase III, Zone 1, is a joint effort between the Kuwait Authority for Partnership Projects (KAPP) and the Ministry of Electricity, Water, and Renewable Energy.
The project scope covers development, financing, design, engineering, procurement, construction, testing, and commissioning of the solar PV plant, along with the construction of a 400 kV power transmission substation.
Following a prequalification process conducted in August 2024, six bidders have been shortlisted. These include two standalone companies—France’s TotalEnergies Renewables and Vietnam’s Trung Nam Construction Investment Corporation—as well as four international consortia:
- ACWA Power (Saudi Arabia) and Alternative Energy Projects Co. (Kuwait)
- Masdar (UAE) and Fouad Alghanim & Sons (Kuwait)
- EDF Renewables (France), Abdullah Al Hamad Al Sagar (Kuwait), and Korean Western Power (South Korea)
- Jinko Power (China), JERA (Japan), and National Technology Enterprises Co. (Kuwait)
The winning developer will sign a 30-year Power Purchase Agreement (PPA) with the Ministry, commencing on the project’s Commercial Operation Date. Technical and commercial bids are due by September 14, 2025.
Updated 7th April 2024 – The Kuwait Authority for Partnership Projects (KAPP) has – in collaboration with the Ministry of Electricity & Water & Renewable Energy (MEWRE) of Kuwait – issued requests for qualification (RFQs) to the developers/developer consortia for the Al Dibdibah Power and Al Shagaya Renewable Energy (Phase III) Zone 1 Solar PV Independent Power Project (IPP).
A renewable power facility, the Al Dibdibah Power and Al Shagaya plant lies within the administrative boundary of Jahra Governorate in the west of Kuwait City, approximately 100km from the capital. On completion, it will boast a net power capacity of 1,100MW. According to KAPP, the winning consortium will be responsible for the development, financing, design, procurement, engineering, construction, testing, commissioning, operation, maintenance as well as transfer of the key Al Dibdibah Power and Al Shagaya Renewable Energy project.
KAPP said the project will export the output from the plant to Kuwait’s electricity grid and transmission network. It will benefit from power purchase agreement (PPA) with MEWRE as the off taker for a 30-year term.
As the main body responsible for implementation of the public-private-partnership projects, KAPP aims to utilise private sector skills and expertise to maximize value for money and service quality.
Developers of the Project
Both KAPP and Ministry of Electricity & Water & Renewable Energy were assisted in the project by Ernst & Young as lead and financial advisor, DLA Piper as legal advisor and DNV as technical and environmental advisor.
As the main body responsible for implementation of the public-private-partnership projects, KAPP aims to utilise private sector skills and expertise to maximize value for money and service quality.It is currently in the process of initiating several high-impact projects in the power, water/wastewater, education, health, transportation, communications, real estate, and solid waste management sectors.
Significance of the Project
KAPP pointed out that following its completion, the project will benefit from power purchase agreement with Ministry of Electricity & Water & Renewable Energy. as the off taker for a 30-year term.It will export the output from the plant to Kuwait’s electricity grid and transmission network.
Both KAPP and Ministry of Electricity & Water & Renewable Energy were assisted in the project by Ernst & Young as lead and financial advisor, DLA Piper as legal advisor and DNV as technical and environmental advisor.
This significant step aligns with Kuwait’s commitment to embracing clean energy and marks a strategic move towards reducing reliance on conventional power sources. The qualification process signals a new era for the private sector involvement in Kuwait’s renewable energy landscape.
Main Objectives of the Al Dibdibah Power and Al Shagaya Renewable Energy Projects
- Introduce private sector practices and capital to traditionally public sector-controlled domains.
- Alleviate the financial and operational burden from the Ministry of Electricity & Water & Renewable Energy.
- Decrease dependence on fossil fuels, reducing overall power generation costs.
- Enhance renewable energy capacity in Kuwait’s energy mix
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