ACWA Power Consortium Secures $4 Billion Power Project in Kuwait

Okay, here’s a breakdown of the key details from the provided text, organized for clarity.

1. Project Overview:

Name: Az-Zour North Phase 2 & 3 Integrated Water and Power Plant (IWPP)
Location: Kuwait
Scale: The largest integrated power and water plant in Kuwait.
Capacity:
Net power Generation: At least 2,700 megawatts (will double the current capacity of the Al-Zour venture, which already produces 2,700 MW)
Net Desalinated Water Production: At least 120 million imperial gallons per day (MIGD) (will double the current capacity of the al-Zour venture, which already desalinates 120 MIGDs)
Investment Cost: Exceeding US$4 billion
Completion Date: Expected by 2029

2. Key Players & ownership:

ACWA Power: (Riyadh-headquartered) Leads the consortium. World’s largest private water desalination company. Holds 40% of the project company.
Gulf Investment Corporation (GIC): Part of the consortium. A pioneer in PPP infrastructure projects in the region.
Kuwait Authority for Partnership Projects Authority (KAPP): Holds 60% of the project company initially.Will later allocate 50% of the company’s capital for public subscription.
Ministry of Electricity, Water and Renewable energy (MEWRE): Partner with KAPP.3. Project Structure & Agreement:

Model: Build-Operate-Transfer (BOT) – 25-year offtake agreement. project Company: A new company will be established, 40% owned by the consortium (ACWA Power & GIC) and 60% by KAPP.
public Offering: KAPP will later offer 50% of the project company’s capital to Kuwaiti citizens through a public subscription and listing on the Kuwait stock Exchange.

4. Benefits & Goals:

kuwait’s Development agenda: Supports Kuwait’s aspiring development plans.
Energy & Water Security: enhances the reliable and enduring delivery of power and water.
Infrastructure Improvement: Overhauls Kuwait’s infrastructure.
Economic Growth: creates employment opportunities for Kuwaitis during construction and operation.
private Sector Engagement: Engages the private sector in infrastructure development.
* Foreign Investment: Attracts foreign investment.

Let me know if you’d like me to focus on a specific aspect of this data or answer any particular questions about the project!

What is the expected Commercial Operation Date (COD) for the Al-Durrah plant?

Project Overview: Al-Durrah Integrated Solar Combined Cycle (ISCC) Power Plant

ACWA Power, a leading Saudi developer, along with its consortium partners – including Gulf Investment Corporation (GIC) and Hassan Allam Holdings – has recently secured a landmark $4 billion contract to develop, build, and operate the Al-Durrah Integrated Solar Combined Cycle (ISCC) power plant in Kuwait. This project represents a meaningful step forward in Kuwait’s diversification of its energy mix and commitment to sustainable power generation. the plant, located in Zour, will have a total capacity of 2.41 GW, making it one of the largest ISCC projects globally.

This win underscores ACWA Power’s expanding footprint in the Middle East and North Africa (MENA) region, solidifying its position as a key player in the renewable energy and power sector.The project is especially noteworthy for its innovative integration of solar power with a conventional combined cycle gas turbine (CCGT) plant, maximizing efficiency and reducing carbon emissions.

Key Project Details & Specifications

the Al-Durrah plant will utilize cutting-edge technology to deliver reliable and cost-effective power to Kuwait. Here’s a breakdown of the core specifications:

Capacity: 2.41 Gigawatts (GW)

Technology: Integrated Solar Combined Cycle (ISCC) – combining concentrated solar power (CSP) with a CCGT plant.

Location: Zour, Kuwait

Contract Value: $4 Billion

Commercial Operation Date (COD): Expected in 2029

Power Purchase Agreement (PPA): 30-year PPA with Kuwait’s Ministry of Electricity, Water & Renewable Energy (MEWRE).

Financing: A combination of equity from the consortium and project finance from regional and international banks.

The Role of Integrated Solar Combined Cycle (ISCC) Technology

ISCC technology is gaining traction globally as a viable solution for reducing the carbon footprint of power generation. Unlike traditional CCGT plants, ISCC plants integrate concentrated solar power (CSP) to preheat steam, reducing the amount of natural gas required to generate electricity.

Here’s how it works:

1. Concentrated Solar Power (CSP): Mirrors concentrate sunlight to heat a heat transfer fluid.
2. Steam Generation: The heated fluid generates steam.
3. Combined Cycle: This steam is fed into a steam turbine alongside the steam generated from the gas turbine, increasing overall efficiency.
4. Reduced emissions: Lower natural gas consumption translates to reduced CO2 emissions.

This hybrid approach offers several advantages, including:

Increased efficiency: Higher overall plant efficiency compared to standalone CCGT plants.

Reduced Fuel Consumption: Lower reliance on fossil fuels.

Lower Emissions: Reduced greenhouse gas emissions.

Dispatchability: the ability to generate power on demand, unlike intermittent renewable sources like wind or solar PV.

Consortium partners & Their Contributions

The success of this project hinges on the combined expertise of the ACWA Power-led consortium:

ACWA Power (Saudi Arabia): The lead developer and investor, bringing extensive experience in developing and operating large-scale power and desalination projects. ACWA Power is a publicly listed company on the Tadawul stock exchange.

Gulf Investment Corporation (GIC) (Kuwait): A regional investment firm with a strong track record in infrastructure projects. GIC’s local knowledge and financial strength are crucial for the project’s success.

Hassan Allam Holdings (Egypt): A leading construction and engineering company with a proven ability to deliver complex infrastructure projects on time and within budget. They will be responsible for the Engineering, Procurement, and Construction (EPC) aspects of the project.

Kuwait’s Energy Transition & Renewable Energy Targets

The Al-Durrah project is a cornerstone of Kuwait’s ambitious plan to diversify its energy sources and increase the share of renewables in its energy mix. Kuwait aims to generate 15% of its electricity from renewable sources by 2030, as outlined in its National Renewable Energy Plan.

This project aligns with broader regional trends towards decarbonization and sustainable progress. Other key initiatives include:

Shagaya Renewable Energy Park: A large-scale solar and wind energy park currently under development.

Investments in Energy Efficiency: Programs to reduce energy consumption across various sectors.

Development of Smart grid Infrastructure: Modernizing the grid to accommodate increasing amounts of renewable energy.

Financing the $4 Billion Project: A Breakdown

Securing financing for a project of this magnitude requires a complex financial structure. The Al-Durrah project will be financed thru a combination of:

Equity Contribution: The consortium partners will contribute a significant portion of the project’s equity.

* Project Finance Debt: The majority of the funding will come