As of 2020, Kuwait has an installed solar power capacity of approximately 106 MW.⁷

The country currently has 8 GW of solar panel capacity under development.⁸

Kuwait is ramping up plans for its much-delayed first utility-scale solar project, Al-Shagaya, which aims to generate 2,000 MW of power by 2030 as part of its renewable energy goals.⁹

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Natural gas: The average cost of electricity generated from natural gas in Kuwait is approximately $0.049 per kWh, as it’s the main source of their electricity generation.

Oil: The average cost of electricity for oil-based power generation in Kuwait is not available because Kuwait primarily relies on natural gas for electricity production.

Renewables: The average levelized cost of electricity (nominal) for a solar plant in Kuwait was estimated at 90.45 USD per megawatt-hour (MWh), while the levelized cost of electricity (real) was estimated at 74.60 USD per megawatt-hour (MWh).

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Fossil fuels: both natural gas and oil contributed approximately 99.9% of Kuwait’s electricity.

Renewables: Renewables contributed approximately 0.1% of the total Kuwaiti power generation in 2021, which includes wind (0.03%) and solar (0.07%).

As of the most recent data available, Kuwait has a high level of electricity access. Approximately 100% of its population has access to electricity. However, there are power outages during the summer due to Kuwait’s high energy consumption related to increasing demands for indoor cooling as temperatures reach and exceed 55 °C in the summer.¹²¹³¹⁴

As of now, there have been approximately 150 residential solar panel installations in Kuwait; the PV system installed capacity for 150 households is around 1.5 MWp.¹⁵

From publicly available records, it seems there are around 7 installed and projected solar farms in Kuwait.¹⁶

According to Data Bridge Market Research, the Kuwait Solar Photovoltaic (PV) System Market was valued at USD 121.82 million in 2022 and is expected to reach USD 680.90 million by 2030, registering a CAGR of 22.80% during the forecast period of 2023-2030.¹⁷

During the time frame of the forecast, the solar energy market in Kuwait is expected to register a compound annual growth rate (CAGR) of more than 7%.¹⁸

A solar energy systems engineer in Kuwait typically earns around 4,107.10 USD. Salaries range from 2,019.64 USD (lowest) to 6,388.82 USD (highest).¹⁹

A renewable energy engineer in Kuwait typically earns around 4,530.84 USD Salaries range from 2,242.09 USD (lowest) to 6,998.86 USD (highest).²⁰

As of 2024, the current population of Kuwait was estimated to be 4,349,380 million people.²¹

The overhead costs for solar panel production in Kuwait typically range from 20% to 25% of the total production cost.

Labor costs for operating machinery, assembling panels, and quality checks are significant. Average labor costs are around 58.67 USD daily, depending on the specific tasks and location of the industry.²²

Utility costs Utilities such as water, electricity, heating, and cooling are generally reasonable in Kuwait. However, electricity is generally higher during the summer due to increased cooling system use.²³

Basic (Electricity, Heating, Cooling, Water, and Garbage) ranges from 22.17 USD-81.49 USD.

Administrative expenses associated with the management of the production process, including salaries of administrative staff, office supplies, and other general expenses, typically add up to a substantial part of the overhead.

Quality control expenses incurred to ensure the solar panels meet performance and safety standards, including testing and inspections.

Estimate for Factory Rent²⁴

The average rent for multi-owned commercial buildings in Kuwait can vary based on location, size, and other factors.

However, as of recent data, industrial rents have fluctuated significantly. Ground-floor units in Kuwait City, prices ranged from $19.75 TO $98.73 per square meter.

Water Costs industrial and agriculture sectors is estimated to kd2.5 per 1000 imperial gallons.²⁵

Rent for Office Space²⁶

• If the administrative office is separate from the factory, rental costs for the office space;
• East Maqwa , Kuwait City: 2,250.96 USD per month
• Al shuhada street, Kuwait City: 1,303.84 USD per square month
• Omar bin Al-khattab Street, Kuwait City: 775.78 USD per month.
• Ahamed Al-Jaber street, Kuwait City: 1,142 USD per month

Insurance

The average spending per capita in the property insurance market in Kuwait is estimated to be US$125.60 in 2024, highlighting the recognition of its significance in protecting assets.²⁷

Kuwait’s energy infrastructure is a comprehensive system that includes the generation, transmission, and distribution of electricity. Key data points about the infrastructure are as follows:^11282930

Total Installed Capacity:

As of 2018, Kuwait’s total installed electricity capacity reached 18.8 million kilowatts (kW). However, it is essential to note that the nominal installed generation capacity is around 20.3 GW, but the actual capacity is slightly lower at approximately 18 GW.

Electricity Generation:

In 2021, electricity generation in Kuwait reached 71.22 TWh. Though 99.9% of the generated electricity in the country that year came from fossil fuels, while wind accounted for 0.03% and solar accounted for 0.07%.

Electricity Consumption:

The total electricity consumption in 2022 was 63.80 billion kWh of electric energy per year.

Kuwait can be completely self-sufficient with domestically produced energy. The total production of all electric-energy producing facilities is 71 billion kWh, also 111 percent of own requirements. The rest of the domestically produced energy is either exported to other countries or unused.

Grid Infrastructure:

Transmission networks: Kuwait’s electrical grids use a combination of overhead power lines and underground cables to transmit electricity. The main and secondary transmission plants ensure that electricity reaches all

Interconnected power plants: Kuwait has interconnected power plants that contribute to the overall grid. Notably, the Al-Wafra power plant plays a crucial role in linking the Gulf Cooperation Council grid with Iraq’s grid, ensuring stable power supply across the region.

Clean Energy Transition:

Kuwait aims to increase its clean energy production, with its strategic energy diversification plan aiming to have 15% of its energy production from renewable energy sources by 2030.

Investment in Renewable Energy:

Kuwait is making significant investments in renewable energy infrastructure, including a massive $365 million project that will be located in Shaqaya.

Kuwait Municipal Council to discuss Solar Panel Regulations:³¹

There is a proposal that seeks to introduce a regulatory framework for construction activities, specifically focusing on the incorporation of solar panels in government and private buildings.

The proposed framework aims to outline the requirements and specifications for the installation of solar panels, along with mechanisms for their setup. This initiative is envisioned to facilitate the licensing and production of electrical energy by individuals and companies, fostering collaboration with the Ministry of Electricity, Water, and Renewable Energy in accordance with Decree No. 57 of 2022.

Renewable Energy Regulatory Development Authority:³²³³

The Ministry of Electricity, Water, and Renewable Energy oversees the development and implementation of policies related to renewable energy projects.

The Kuwait Environment Public Authority (EPA) mandates environmental impact assessment studies for all projects, including solar panel installations, according to their regulations which play a key role in promoting renewable energy in Kuwait.

Quality Standards.³⁴

TÜV Certification

TÜV certification is internationally recognized and highly regarded in the solar panel industry. It ensures that solar panels and solar inverters meet strict safety and quality standards. For solar companies in Kuwait, obtaining TÜV certification means their products are compliant with global industry standards, enhancing consumer trust and marketability. This certification covers various aspects, including performance, durability, and safety, providing a comprehensive quality assurance framework for solar panels.

International Electrotechnical Commission (IEC) Standards

IEC standards, particularly IEC 61215 and IEC 61730, are critical for solar panels operating in Kuwait. IEC 61215 certifies that solar panels are capable of long-term operation in general environments, while IEC 61730 focuses on safety performance, addressing electrical and mechanical safety and fire risk. Adherence to these standards is a testament to the reliability and safety of solar panels, crucial for solar energy companies in Kuwait to ensure their products can withstand the harsh climatic conditions prevalent in the region.

ISO 9001: Quality Management System

ISO 9001 certification is not specific to solar panels but is essential for solar panel manufacturers and solar inverter manufacturers in Kuwait. It demonstrates a commitment to quality management practices and continuous improvement processes. For solar energy products, this certification means that every step of the manufacturing process meets high-quality standards, from design and development to production and post-sales services. It reassures stakeholders of the company’s ability to consistently deliver products that meet customer and regulatory requirements.

These certifications are fundamental for solar panels and solar systems in Kuwait, ensuring they meet international standards for quality, performance, and safety. For solar energy companies in Kuwait, acquiring these certifications is a significant step towards establishing credibility and trust in the Kuwait solar market, facilitating smoother entry and acceptance of solar energy solutions in the country. As Kuwait aims to increase its share of renewable energy, adherence to these certifications by solar panel manufacturers and suppliers will play a pivotal role in the sustainable growth of the solar energy sector in Kuwait.

Kuwait’s government lacks policies and initiatives that would boost the solar energy sector, restraining its market’s growth, few of its initiatives and investments include ¹⁸:

Feed-in tariff ³⁵: Kuwait is working on a solar feed-in tariff where owners of solar panels get to sell unused power back to the national grid under a new framework being drawn up by the Electricity and Water Ministry. The government purchases surplus electricity produced from solar panels and feeds it back to the grid. This provides an additional incentive for households and business owners to purchase solar panels or wind turbines by offering them a way to generate income from their investment.

The off-taker, usually energy suppliers or governments, offers to purchase units of power at a fixed rate per kWh, helping them to offset existing utility bills and break even faster.

Project investment ³⁶: Future plans: Kuwait is investing in clean energy projects, including wind and solar. A Kuwaiti company plans to develop a 2 GW wind and solar project and a 3 GW solar plant through public-private partnerships.

Research and development ²⁹: The Kuwait Institute for Scientific Research has partnered with Spain’s TSK Group to establish the country’s first solar thermal energy plant with a production capacity of 50 MW when completed.

Monumental Solar Energy Project ³⁷: Kuwait recently announced a groundbreaking solar energy project aimed at generating 1 GW of electricity through solar power, representing a significant move in Kuwait’s energy diversification strategy.

Shagaya Solar Project:³⁸

• Capacity: The project aims to achieve 4 GW of solar power capacity.
• Phases:
  I. Phase 1 (1,100 MWac): This phase will fully utilize photovoltaic solar technology.
  II. Phase 2 (200 MW): this involves a concentrated solar power (CSP) plant with approximately five hours of storage capacity.
  III. Phases 3 and 4 (3,200 MWac): These phases are set to be released by mid-next year, bringing the project closer to completion.

Shagaya Renewable Energy Park:³⁹

• Capacity: The park comprises of 10 MW of photovoltaic solar capacity, a 10 MW wind farm, and a 50 MW concentrated solar plant.
• Commissioning: It was opened in 2019 after the commissioning of its first phase, which is part of Kuwait’s ambitious master plan to generate approximately 3.2 GW using renewable sources by 2030.

North Kuwait Solar:⁴⁰ This is a solar photovoltaic (PV) farm in Al Jahra, Kuwait.

• Capacity: 5000 MW
• Status: pre-construction
• Technology: photovoltaic (PV)

Subiya Solar Farm: ⁴¹ is a solar photovoltaic (PV) farm in Al Jahra, Kuwait.

• Capacity: 30 MW
• Status: pre-construction
• Commissioning year: 2025 (planned)
• Technology: photovoltaic (PV)

Sidrah 500 solar farm ⁴² is an operating solar photovoltaic (PV) farm in Umm Gudair, West Kuwait, Kuwait.

• Capacity: 10 MWp/dc
• Status: operational
• Commissioning year: 2016
• Technology: photovoltaic (PV)

Al Abdaliyah solar farm ⁴³ is a solar farm in Al Ahmadi, Kuwait.

• Capacity: 60 MW
• Status: pre-construction
• Technology: assumed (PV)

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Solarity Solar Energy

Solarity specializes in the provision of solar photovoltaic (PV) solutions, leveraging Kuwait’s abundant solar resources. The company offers a comprehensive range of solar panels and related services, including installation and maintenance, to both residential and commercial customers, with a focus on innovation and sustainability,

JinkoSolar Holding Co., Ltd.

The company offers a diverse product portfolio that includes high-performance solar panels, PV modules, and integrated solar products. JinkoSolar’s edge lies in its cutting-edge technology and continuous innovation, ensuring that its solar solutions are among the most efficient and cost-effective on the market.

TSK Electrónica y Electricidad SA

Specializing in solar PV and concentrated solar power (CSP) projects, TSK offers comprehensive solutions from project conception to completion, including design, procurement, construction, and operation. TSK’s advantage lies in its integrated approach and expertise in managing complex projects, ensuring high-quality outcomes and efficiency in solar energy production.

Kuwait National Petroleum Company (KNPC)

KNPC’s foray into solar energy is highlighted by its participation in significant solar projects, aiming to leverage the country’s solar potential to power its operations and contribute to the national grid. The advantage of KNPC in the solar sector is its extensive experience in energy infrastructure, financial robustness, and a strong commitment to supporting Kuwait’s transition to a more sustainable energy mix.