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The estimated cost of building the station, approximately $1.39bln
KUWAIT CITY - In a move that could significantly alleviate Kuwait’s ongoing power crisis, a global investor from Finland has submitted a groundbreaking proposal under the Independent Power Provider (IPP) system, highlighting a transformative solution for Kuwait’s energy sector.
Sources informed the daily that the Finnish company that has submitted the proposal is Wärtsilä, a renowned developer specializing in energy and renewable technologies with an offer to build a power generation station with 1,500 megawatts capacity, to be completed within 18 months to address the recurring power outages plaguing the country, all at no cost to the government.
The company has already presented a comprehensive study on how Kuwait’s electrical system could benefit from its advanced technologies. The company’s systems are designed to reduce fuel consumption, cut carbon emissions, and produce electricity at a fraction of the cost currently incurred by the state.
Cost
The estimated cost of building the station, approximately 425 million dinars, would be fully financed by the Finnish investor. Moreover, the proposed cost for generating electricity — around 11 fils per kilowatt — would offer a competitive rate, depending on factors such as location and the scope of additional work like extending electrical and fuel networks. Key advantages of the Finnish offer include complete financing, implementation, operation, management, and maintenance at the developer’s expense, with no cost to the state. This is in addition to long-term financial stability, with the developer committing to a 25-year contract (or longer) for selling electricity to the government.
There is also no financial risk or operational burden on the government and includes a competitive tariff due to the low overall project costs. The expertise of the developer with extensive experience in modern energy and renewable technology and the use of diverse fuel options, including green hydrogen, enhances operational flexibility and reduces costs with a flexible operating system that stabilizes the electrical grid and other advantages.
Minimal
The project promises minimal maintenance downtimes, with the station’s modular design ensuring continuous production; the ability to meet rising electricity demands without resorting to programmed power cuts or sudden outages; compatibility with solar energy integration; no need for water cooling and allowing for flexible site selection. The project has a potential future use of green hydrogen as fuel amid continuous energy supply at a 98% rate over 25 years, supporting the electrical system’s overall capacity.
Despite the obvious benefits, sources noted that no decision has yet been made regarding the Finnish proposal. With several power generation projects delayed and others not yet tendered, the need for swift action is critical to avoid future disruptions in electricity and water supply.
The sources further emphasized that many international developers have presented exceptional proposals to address Kuwait’s energy challenges, all at no cost to the state. These offers represent a significant opportunity for the government to save substantial amounts from its budget while benefiting from advanced technologies.
Wärtsilä’ founded in 1834, employs over 20,000 people across 80 countries and has played a leading role in energy technology development. Their advanced generating units can operate on all types of fuel, including green hydrogen in the future, while offering flexible and smart energy solutions. |
