1.5 GW Solar Tender In Kuwait

Kuwait National Petroleum Company Tenders 1.5 GW Capacity For Al-Dibdibah Solar Power Project Within Al-Shagaya Renewable Energy Park
07:05 AM (Beijing Time) - 24. September 2018

A subsidiary of Kuwait Petroleum Corporation KNPC is the only oil refining company in the country that serves the fuel needs of local populace for gasoline, diesel, kerosene and gas. Plans to launch a tender for the Al-Dibdibah solar power project were in the pipeline as the company had confirmed to Bloomberg in August 2017. However, back then the capacity was thought to be 1 GW, which now has been increased to about 1.5 GW. (Photo Credit: Kuwait National Petroleum Company)

Key Takeaways

  • KNPC has issued a tender to develop 1.5 GW of solar power capacity in the country
  • The 1.5 GW Al-Dibdibah solar power project will be located within Al-Shagaya Renewable Energy Park
  • Scope of work includes supply, construction, operation and maintenance of the project for 25 years; in the 25th year of its operation, the project should generate 3,150 GWh of clean energy
  • Terms and conditions of the project specify 30% local content requirement each for quoted services to be contracted as well as for materials purchased by foreign bidders
  • Local bidders will have to ensure a minimum of 20% of quoted materials and equipment to come from local industries

The national oil company of Kuwait has launched a solar power tender seeking deployment of 1.5 GW capacity in form of the Al-Dibdibah solar power project. The Kuwait National Petroleum Company (KNPC), a subsidiary of Kuwait Petroleum Corporation (KPC), has defined the scope of work for the project – a contract for supply, construction, operation and maintenance of the project for a period of 25 years.

The capacity will be developed in five blocks of about 300 MW each to be deployed in the Al-Shagaya Renewable Energy Park. The overall energy generation target is 3,150 GWh in the 25th year of operation. Winning bidders will get 24 months to procure and construct the project.

The terms of the tender make it mandatory for foreign bidders to ensure a minimum of 30% of the quoted services to be contracted through local contractors, as well as 30% of materials purchased. As for local Kuwaiti bidders, they need to ensure a minimum 20% of the quoted materials and equipment is purchased from local industries.

A first preparatory meeting will be on October 11, 2018, the last date to submit applications is December 16, 2018. More information about the tender can be found on the website of Central Agency for Public Tenders (CAPT).

According to a Bloomberg report in August 2017, KNPC executives had confirmed that the company plans to launch a 1 GW tender for the Al-Dibdibah solar PV plant in the first quarter of 2018 (see Kuwait To Launch 1 GW Tender In Q1/2018). The entire project is scheduled to come online in 2020.

Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews

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Anu Bhambhani