Powering Kuwait

Can nuclear power help solve Kuwait’s future energy needs? Utilities Middle East examines the current and future market in the country.

The power generation capacity of Kuwait is set to increase by more than 35% compared to the 2007 levels according to a recent report.

The 2009 Kuwait Power Report, published in December by Business Monitor International (BMI) predicts a rise in the capacity to 1 512 TWh by 2012 from 1 117 TWh in 2007. The country will then account for 3.84% of MEA power generation adds BMI.

With the 2007 figure already showing a 6% rise over the previous year, what is prompting such change and how can utilities firms help meet the country's rising demands?

Reasons for change

The short answer behind the need for an increased electricity and water capacity in Kuwait is the economic development and growth of the country. As with other Gulf countries, Kuwait has seen a rapid boom over the past few years due largely to the reinvestment of high oil export revenues, the country being the world's seventh largest oil exporter.

Power shortages in the past have meant the country has suffered from power cuts during the summer periods when demand is highest. Most recently, a series of programmed power and water cuts were made during the summer of 2007, whereby over a two-month period a one hour black-out was made daily as demand outstripped the available supply.

A repeat of this procedure was narrowly avoided in 2008 mainly due to the implementation of emergency power projects. With a number of developments planned and underway in the country, including the City of Silk (Madinat Al-Hareer) and Al Hamra Tower, the demand for both power and water is expected to hike further.

A rapid growth in power demand is expected through to 2015, and with this in mind in mid-2008 the government announced plans to launch tenders for power expansion projects worth more than US $2.5 billion. It is expected to spend $27 billion on power and water projects by 2015.

A fast growing population and related plans for housing are the main driving forces behind the investment according to the Ministry of Electricity and Water. BMI predicts the population will grow by almost one million people to 4.3 million between 2007 and 2012.

The per capita power consumption is also expected to rise by 7.8% over this period, putting even greater pressure on the existing capacity. The per capita electricity consumption in Kuwait is currently one of the highest in the world.

Greatly subsidised rates offered to Kuwaiti nationals also mean that there is little incentive for individuals to reduce their power use.

Future demand

Among the plans announced for the power sector expansion is that for a 2 000 MW combined cycle gas turbine plant in the north of the country.

With construction already underway, the first turbine for the Al Shuaiba plant is due to be delivered to site in April 2009, Mitsui and Hyundai Engineering Construction having won the contract for the electricity generation in 2007.

When complete, the plant is due to include three 220 MW gas turbines; three steam generation turbines that will recycle thermal energy for use in the desalination plant; and a 220 MW steam turbine manufactured by Japan-based firm Toshiba.

Set to be the first power plant in Kuwait to simultaneously generate electricity and provide desalinated water, it will also include three water desalination units from Italian firm Fisia Italimianti. These are each expected to have a daily capacity of 15 million gallons.

A further tender was expected to be released in 2009 for a 4 700 MW plant in North Al Zour, which is planned to be built in four phases, with completion scheduled for 2011. However the sudden effects of the global economic crisis may play a large part in the plans for expanding the utilities sector.

In early February it was reported that a contract valued at almost US $2.5 billion to build turbines for the 2 000 MW Subiya power plant was to be delayed.

The gas-fired combined cycle power plant was due to be built on a design-build-operate (DBO) basis, which included a seven year operation and maintenance period. Several firms have already been linked to this project including Siemens, General Electric and Hyundai Heavy Industries.

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