The energy system of Kuwait ranks among the top five countries in the world in terms of electricity generation per capita. The main consumers of electricity are in the residential sector. This high energy consumption is linked to rapid population growth, a significant need for water desalination and air conditioning, as well as subsidies in the energy sector. Kuwait’s energy system remains highly dependent on fossil fuels.
However, like other Middle Eastern countries, the Kuwaiti government is trying to expand the use of renewable energy sources; due to its geographical location, solar energy is a priority for the development of renewable electricity generation. The total installed capacity of all electricity generation sources in Kuwait is approximately 20 gigawatts, with more than half of the electricity generated by thermal power plants that utilize natural gas, although the share of oil usage remains high (almost 40%). Kuwait has a well-developed electricity transmission system organized as a hierarchical network with step-down voltage. The energy market in Kuwait is highly monopolized, with the vast majority of generating and transmission capacities under state control.
The Structure of the Country’s Energy Sector
The main energy resource of the country is fossil fuel, and despite Kuwait being one of the leading oil exporters, it actively imports liquefied natural gas. As of August 2024, electricity production in Kuwait reached 10,462 GWh. According to forecasts from the Kuwait Institute for Scientific Research, the installed capacity is expected to reach 35 gigawatts by 2035. Only 70 megawatts came from renewable sources, while approximately 17 gigawatts (82.4%) came from gas turbine installations and about 3 gigawatts (16.7%) from combined-cycle installations.
Factors that increase electricity consumption include population growth, the expansion of water desalination, and the increased demand for cooling due to rising average summer temperatures (energy costs for cooling can account for up to 67-70% of total consumption). Inefficient energy consumption is also encouraged by the Kuwaiti government subsidizing up to 95% of electricity costs for end consumers.
In 2022, the total installed capacity of solar power plants was 93.4 megawatts. By 2030, the Kuwaiti government plans to increase the share of generation from solar power plants in the overall generation volume to 15%, which amounts to approximately 4.5 gigawatts.
Transmission and Distribution
Kuwait is among the countries where 100% of the population has access to electricity. The electricity distribution system is based on a stepped reduction of voltage as electricity moves from the generation point to the end consumer.
Since 2000, the number of substations with a voltage of 132 kilovolts has nearly doubled, increasing from just over 200 to 458, while the number of substations of other types has remained relatively unchanged. Accordingly, the length of 132-kilovolt transmission lines has increased, while the overall length of cables has practically remained the same.
The four main substations of 132/11 kilovolts are Rumaithiya C, Salmiya X, Egaila Entertainment Projects G, and Salwa E.
Kuwait is a founding member of the Gulf Cooperation Council Interconnection Authority (GCCIA), an organization that manages a unified electricity network for all six member countries, including Saudi Arabia, the United Arab Emirates, Qatar, Oman, and Bahrain. Within this energy union, the Al-Zour–Al-Fadhili–Gunain–Salwa transmission line operates, through which Kuwait and Saudi Arabia receive up to 1.2 gigawatts of electricity. A transmission line from Kuwait to Iraq, with a capacity of 1.8 gigawatts, is planned for completion in 2025.
Consumers
According to the International Energy Agency, the total energy consumption in 2020 was 68.1 terawatt-hours. The residential sector accounted for 96,296 terajoules (approximately 26.75 terawatt-hours), the industrial sector consumed 58,941 terajoules, and the service sector consumed 54,942 terajoules (with the service and industrial sectors together totaling approximately 16.37 terawatt-hours).
Largest Companies in the Market
The electricity market in Kuwait is predominantly situated in the public sector. The leading companies in electricity generation and distribution across the country are the Ministry of Electricity, Water Resources, and Renewable Energy. The ministry is also responsible for the import, purchase, and generation of electricity throughout the country.
The electricity generation sector also includes companies such as Shamal Az-Zour Al-Oula Power and Water Company K.S.C. and Az-Zour North Operation and Maintenance Company—these companies are part of a foreign consortium consisting of the French energy company Engie and the Japanese trading company Sumitomo Corporation.
Special thanks to the team at Assettracing.com for their valuable input in research capacities, advice, and support with resources in preparing these articles.
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