Kuwait’s Renewable Energy Goal: Ambition Meets Reality

In recent years, Kuwait has set its sights on an ambitious transformation; taking its energy sector and transforming it. According to Forbes Middle East, Kuwait aims for  50 per cent renewable energy by 2050 with goals to tackle environmental and economic challenges. The country is striving to find creative and practical solutions for cleaner energy resources, hoping to shift oil dependency. Although, this is a challenge easier said than done. 

In the center of this renewable energy plan is the Shagaya Renewable Energy Park - a vast desert project designed to supply around 4,800 megawatts of electricity (about 26-27 per cent of the country’s projected needs by 2028). Sabeeh Al-Mukhaizeem of Kuwait News Agency (KUNA) expressed hope that this project will be operational by 2028 although the funds are still under review. The country has also committed to generating 15 per cent of its total electricity from renewables by 2030, and by 2050 aims to produce 17 gigawatts of renewable power along with 25 gigawatts of green hydrogen, positioning itself as a key member in the Gulf’s green transition.

However, the current electricity grid was built for oil-powered plants and is not yet fully equipped to handle intermittent renewable sources like solar and wind. According to a World Bank assessment, modernizing the grid will be essential to be able to successfully use such renewable power. Meanwhile, delays in renewable energy projects such as the staggered growth of Shagaya Phase 2 point to slower completion dates as once assured and show that the project is complex.

Unfortunately the estimate for the pipeline of projects across the region has grown to around 3.1 trillion USD and public-private partnerships were expected to play a major role in Kuwait’s green transition. Concerns over project financing, land access, and outdated procurement laws which have slowed progress. For example, companies involved in Shagaya’s next phases have faced bureaucratic hurdles and Kuwait may fall behind the rest of the Gulf in the green transition.

The efforts to become more environmentally friendly align with the Kuwait Vision 2035 which calls for diversifying the economy and building a knowledge-based environmentally sustainable society. Clean energy is also incredibly important for Kuwait’s climate commitments under the Paris Agreement, and with its neighboring countries like the UAE and Saudi Arabia accelerating energy transitions, Kuwait is under added pressure to deliver.

In the end, Kuwait’s goals aren’t out of reach but there are obstacles to overcome. With global temperatures rising and domestic demand surging each summer, urgency has never been greater. With continued progress, Kuwait is on track to becoming a leader in the regional energy transition and the next few years will determine whether the vision will develop into a reality.