Kuwait Set to Select Winning Bidder for 1.1GW Solar Project

Kuwait is expected to announce the winning bidder for the 1.1GW Al Dibdibah Power and Al Shagaya Renewable Energy Phase III Zone 1 solar project in the third quarter of 2026, marking a significant step in the country’s efforts to expand renewable energy capacity and diversify its energy mix.

The project is located within the Shagaya Renewable Energy Park in Jahra Governorate and is one of Kuwait’s largest planned solar developments. Authorities are expected to open financial bids by mid-July, with the preferred bidder likely to be identified within the next two months.

The tender was issued by the Kuwait Authority for Partnership Projects (KAPP) in collaboration with the Ministry of Electricity, Water and Renewable Energy. The project forms part of Kuwait’s broader strategy to increase the share of renewable energy in its power mix and strengthen long-term energy sustainability.

Kuwait is also advancing additional renewable energy projects at the Shagaya complex, including a separate 500MW solar development. Officials have highlighted renewable energy expansion as a key component of the country’s long-term energy transition and emissions reduction efforts.

The Al Dibdibah / Al Shagaya Phase III Zone 1 project represents one of the largest single utility-scale solar tenders in the GCC in recent years.

Kuwait has been a comparatively later mover on renewable capacity than regional peers Saudi Arabia and the UAE, and the KAPP tender structure - combining project financing, ownership and operating rights under a public-private partnership - reflects the country's broader effort to catch up on renewable deployment through structured commercial arrangements.

The parallel 500 MW project at the same complex indicates that the Shagaya park is being developed as a multi-phase renewable hub rather than a one-off installation. For international developers and financiers, Kuwait's tender process and the accompanying policy commitment provide credibility signals that make committing capital and technology partnerships more attractive than in previous cycles.

For renewable developers, EPC contractors, financiers and technology providers evaluating opportunities in the GCC, Cognitud's energy transition, market intelligence and responsible investment teams help clients navigate cross-jurisdiction tender processes, structure PPP financing arrangements aligned with regional practice, and prepare the ESG disclosures that increasingly determine bankability and access to development-finance-institution capital in emerging renewable markets.