Business Monitor International

Kuwait Power Report

Published 01 April 2014

  • 50 pages
  • Instant access to your report online and PDF format through your account library
  • Includes 3 free updated quarterly reports
Kuwait Power Report

BMI View: Kuwait's first public-private p artnership for the construction of the 1.5GW al-Zour power plant and desalination plant has the potential to set a precedent for greater private sector engagement within Kuwait's infrastructure and power sectors. The country, which relies almost entirely on conventional thermal sourc es for electricity generation, has suffered from power shortages in recent months. With demand for power likely to continue rising rapidly in the years ahead, the government is keen to spur additional investment in the sector. That said, Kuwait's business environment remains challenging for international investors, and we question the timely realisation of the project given the barriers still left to overcome .

Conventional thermal sources will remain the dominant fuel for electricity generation in Kuwait over the coming years. Following the Fukushima tragedy in 2011, Kuwait ordered the National Nuclear Energy Committee to be dissolved and officially abandoned its pursuit of nuclear power. However, the country is nevertheless aiming to reduce its domestic oil consumption in an effort to free up additional barrels for export, with many power projects that are planned or under construction set to use gas.

The electricity and water ministry wishes to more than double generating and desalination capacity by 2017 to cater for growing demand and an estimated US$2.5bn is expected to be invested over the medium term. As part of these efforts, in late December 2013 the government awarded a US$2bn contract for the construction of the emirate's first independent water and power contract, granting private companies a stake in the country's energy sector for the first time in an effort to encourage investment. The government has also set ambitious targets with regard to the use of renewable energy, but there is a long way to go before renewables will play a major role in the country's energy mix. At the same time, the country's highly...

Table of Contents

BMI Industry View
Industry Forecast
Kuwait Snapshot
Table: Country Snapshot: Economic And Demographic Data
Table: Country Snapshot: Power Sector
Kuwait Power Forecast Scenario
Electricity Generation And Power Generating Capacity
Table: Kuwait Total Electricity Generation, Data And Forecasts, 2011-2016
Table: Kuwait Total Electricity Generation Long-Term Forecasts, 2017-2022
Table: Kuwait Electricity Generating Capacity Data And Forecasts, 2011-2016
Table: Kuwait Electricity Generating Capacity Long-Term Forecasts, 2017-2022
Electricity Consumption
Table: Kuwait Total Electricity Consumption Data And Forecasts, 2011-2016
Table: Kuwait Total Electricity Consumption Long-Term Forecasts, 2017-2022
Transmission & Distribution
Table: Kuwait Electric Power Transmission And Distribution Losses Data And Forecasts, 2011-2016
Table: Kuwait Electric Power Transmission And Distribution Losses Long-Term Forecasts, 2017-2022
Industry Risk/Reward Ratings
MEA Power Risk/Reward Ratings
Table: MENA Power Risk/Reward Ratings (Scores Out Of 100)
Table: SSA Power Risk/Reward Ratings (Scores Out Of 100)
Kuwait Power Risk/Reward Ratings
Market Overview
Key Policies And Market Structure
Regulation And Competition
Kuwait Power Projects Database
Table: Major Projects - Power
Competitive Landscape
Regional Overview
MEA Industry Overview
Table: MENA And SSA Power Sector - Growth % y-o-y In 2013f
Table: Glossary Of Terms
Methodology And Sources
Industry Forecasts
Power Industry - Data Methodology
Generation and Consumption Data
Electricity Generating Capacity Data
Power Risk/Reward Ratings Methodology
Table: Power Risk/Reward Indicators

The Kuwait Power Report features Business Monitor International (BMI)'s market assessment and independent forecasts covering electricity generation (coal, gas, oil, nuclear, hydro and non-hydro renewables), electricity consumption, trade, transmission and distribution losses and electricity generating capacity.

The Kuwait Power Report also analyses the impact of regulatory changes, recent developments and the background macroeconomic outlook and features competitive landscapes comparing national and multinational operators by sales, market share, investments, projects, partners and expansion strategies.

Key Benefits

  • Use BMI's independent industry forecasts for Kuwait to test other views - a key input for successful budgeting and strategic planning in the power market.
  • Target business opportunities and risks Kuwait's power sector through our reviews of latest power industry trends, regulatory changes, and major deals, projects and investments in Kuwait
  • Assess the activities, strategy and market position of your competitors, partners and clients via our Competitive Landscape analysis.


BMI Industry View

Summary of BMI's key industry forecasts, views and trend analysis, covering power markets, regulatory changes, major investments, projects and company developments.

Industry SWOT Analysis

Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the power sector, and within the broader political, economic and business environment.

Regional Overview

The Regional Overview provides a comparative context from within which one can assess the relative profitability of the power industry in a given country, incorporating BMI's country risk macro forecasts into our regional analysis. They also detail any relevant issues or events that might cause market fluctuations, as well as evaluate the impact of existing power infrastructure and fresh investments on the regional market.

BMI Industry Forecasts

The Industry Forecasts provide historic data series and forecasts to end-2018 for electricity generation (TWh) and electricity generating capacity (MW) for each individual power segment present in the country. These forecasts are in turn supported by explicit assumptions, in conjunction with analysis of the key risks to the main forecast. These in turn are broken down into:

Electricity Generation forecasts for Thermal, Coal, Gas, Oil, Nuclear, Hydro and Non-Hydro Renewables. For this section, we provide information on electricity generation (TWh), % growth year-on-year, KWh per capita, and the % of total electricity generation. The thermal fuels (coal, gas and oil) also have figures for their % of total thermal electricity generation.

Electricity Generating Capacity offers forecasts for the potential net capacity and net capacity growth % change year-on-year for the whole power industry. It also includes individual forecasts for capacity (MW), capacity growth % change year-on-year, and % of total capacity for Thermal, Nuclear, Hydro and Non-Hydro Renewables.

The section also includes historic data series and forecasts to end-2018 for:

Electricity Consumption, encompassing information on net consumption (TWh), net consumption growth % change year-on-year, and net consumption per capita (KWh).

Transmission And Distribution Losses, comprising predictions on Electric Power Transmission And Distribution Losses, (TWh), and Electric Power Transmission And Distribution Losses, % of Output.

Electricity Trade, offering historical figures for imports and exports and forecasts for net imports (TWh).

Market Overview

This section provides an overview of the industry landscape and key players; assessment of the business operating environment and the latest regulatory developments.

Risk/Reward Rankings

BMI's Power Risk/reward Rankings provide fully comparable rankings aimed at investors (power companies, services companies and equity investors) in the regional power market. The rankings methodology makes sophisticated use of various industry, economic and demographic data points and is part of BMI's integrated Country Risk-Industry Rankings products.

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'An essential, multi-faceted research tool. BMI’s thorough understanding of the major market players enables an informed – and informative – review of the sector’s actual performance, together with useful insights into current industry issues, which are topped-off with detailed and invaluable forecasts of industry and macroeconomic trends.’

Senior Research Analyst, ABC International Bank plc