Kuwait cancels 1.5GW Al-Dabdaba solar complex amidst oil crash

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email
Kuwait National Petroleum Company's Shuaiba oil refinery, due to benefit from the Al-Dabdaba complex. Image: KNPC.

Kuwait has cancelled a 1.5GW solar project meant to power the country’s state-owned petrol company citing the ongoing COVID-19 pandemic.

Having originally tendered for the project in September 2018, the 1.5GW complex was expected to start construction last year prior to commencing operations in early 2021.

But delays beset the project and Kuwait’s cabinet has now confirmed it will not proceed. In a statement issued via Kuwait’s news agency, the cabinet confirmed it had elected to cancel all decision on the project due to the onset of novel coronavirus pandemic and its impact on global oil and financial markets.

The cabinet reached the decision during a virtual cabinet meeting held yesterday following recommendations from Kuwait’s economic affairs committee, the statement read.

The ongoing pandemic has sent shockwaves through global oil and financial markets, with numerous reports of delays to finance deals and a collapsing oil price triggered by tumbling energy demand. The International Energy Agency warned in April of an “historic shock” for global energy markets, with oil demand the hardest hit, falling by 9% in 2020.

The 1.5GW Al-Dabdaba solar project was initially intended to be constructed in five blocks of up to 300MW, based in the Al-Shagaya Renewable Energy Park near Kuwait’s border with Saudi Arabia. It was to supply renewable power to the Kuwait National Petroleum Company under a 25-year agreement.

6 October 2021
The future is bright for a new era of US solar and storage, and the 8th annual Solar & Storage Finance Summit will provide opportunities to discuss solutions to the industry’s challenges and provide a networking platform designed to bring together the top minds in the industry to do business. With a mix of high-level, informative presentations and panels, a stellar cast of speakers and audience members with deal-making capacity, the 2021 edition of the event will be a sell-out success.

Read Next

PV Tech Premium
July 30, 2021
Not only will solar be the dominant source of new power generation in Europe by 2025, cementing its position as the third largest market for solar globally, but the continent has placed the asset class at the very heart of its COVID-19 recovery strategy. As part of a week-long special report on PV Tech Premium, Liam Stoker, Edith Hancock and Jules Scully explore the drivers for solar in Europe, the key markets and the challenges that remain.
July 29, 2021
US residential solar installer Sunnova said it was investing in its end-to-end solar services to cater for customers demanding more from their rooftop installations.
July 27, 2021
Canadian Solar has closed a BRL500 million (US$100 million) financing facility to develop a Brazilian solar portfolio claimed to be the country’s largest, while also giving it the option to hold built solar assets for longer.
July 27, 2021
A round-up of the latest news from the US solar market, featuring Vision Solar’s commitment to hire “hundreds” of sales staff as part of a two-state expansion, Recurrent Energy’s sale of two major assets in Texas and news of 8minute Solar Energy strengthening its legal team.
July 26, 2021
The pace of climate action in the US is “wholly unacceptable”, according to the director of the US Department of Energy’s (DOE) Loan Programme Office
July 26, 2021
Meyer Burger is considering its legal options after long-time heterojunction tandem solar cell manufacturing partner Oxford PV ended its collaboration agreement unexpectedly.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
August 19, 2021
At 9am (PT) | 6pm (CEST)
Solar Media Events
August 25, 2021
Solar Media Events
October 6, 2021
Solar Media Events
October 19, 2021
BRISTOL, UK