Kuwait advances 7 GW renewables partnership with China: Kuwait and China have signed a framework agreement to advance the development of the third and fourth zones of the Al Shagaya and Al Abdiliya solar projects with a capacity of some 3.5 GW each, Kuwait News Agency reported on Monday. The projects could later expand to 5 GW each and will be supervised by China. No timeline or investment ticket has been disclosed.
Last we heard about the projects, Kuwait was exploring the ideal ownership structures for the venture, with a study released last November proposing the Kuwaiti and Chinese governments retain 42.5% each and leave the remaining 15% for a Kuwaiti private company. The projects were estimated to have a total value of around USD 800 mn.
This week’s announcement on the projects, however, does not mention any details on ownership, but more details on this project, as well as Chinese ventures in Kuwait, would be announced soon, Asharq Awsat reported, citing Kuwaiti Deputy Foreign Minister for Asian Affairs Samih Hayat.
IN OTHER REGIONAL UPDATES-
#1- Egypt gets a new 500 MW wind farm: The Egyptian Electricity Transmission Company and Siemens Gamesa have inked an agreement to set up a 500 MW wind farm in the Gulf of Suez, according to a statement issued on Wednesday. Siemens will build, finance, and operate the project. No timeline or financial ticket was disclosed for the project.
In the works for some time: Egypt’s cabinet greenlit the project in April 2024 under a build-own-operate agreement. Not much was revealed about the project at the time, but Siemens Gamesa was negotiating with the New and Renewable Energy Authority to acquire land for the construction of a 500 MW wind station back in January 2020, a source told Daily News Egypt at the time. Siemens also held talks with the Egyptian Electricity Transmission Company on an agreement to transfer the energy produced from the project to other areas through the national grid.
Not Siemens’ first Egyptian project: Gamesa is a major player in Egypt’s wind energy sector and is involved in the 500 MW Ras Ghareb, 250 MW West Bakr, and 220 MW Gabal El Zeit projects in the Gulf of Suez.
#2- Algeria has kicked off construction on an 80 MW photovoltaic (PV) solar power plant in Abadla, Bechar province, according to a statement issued on Monday. The plant will be built in two phases, with the first subfields expected to come online around December 2025 and January 2026, and will be connected to the national grid via a 30/60 kV substation.
The big picture: The project is part of Algeria’s plan to install 3.2 GW of solar capacity through 15 PV plants across 12 provinces, the statement adds. Algerian state-owned energy company Sonelgaz awarded 20 solar projects with a total capacity of 3 GW to a mix of local and foreign companies in March last year. The company first tendered 15 solar energy stations across 12 states in October 2023, then followed it up with a secondary tender including five stations across five states. Algeria will start connecting the first batch of projects from its 3.2 GW solar initiative between the end of this year and early 2026.