Kuwait aims to award renewables projects before end of February

20 February 2014

Joint venture of Spain’s TSK Electronica and the local Kharafi National bid low for three Kuwait renewables schemes

Kuwait is expected to award the contracts to build its first major renewables projects before the end of February, according to sources in Kuwait.

The three projects are part of the planned Shagaya Renewable Energy Park, which is being developed by a joint venture of Kuwait’s Ministry of Electricity and Water (MEW) and Kuwait Institute for Scientific Research (Kisr).

In October, two groups submitted bids for the project to build a 10MW wind farm. Shortly after, in November, six bidders submitted prices to build a 50MW concentrating solar power (CSP) plant and nine firms submitted bids for a smaller 10MW photovoltaic (PV) solar plant. The joint venture of Spain’s TSK Electronica and the local Kharafi National submitted the low bid for all three projects and is expected to win the contract to deliver the three schemes.

For the wind farm, the group submitted a price of $21m, $4m lower than the $25m price submitted by the joint venture of Spain’s Elecnor and the localAlghanim International General Trading & Contracting.

For the 50MW CSP plant, the joint venture submitted a price of $358.6m, about 20 per cent lower than the second bid of $450.6m submitted by a consortium led by Spain’s Abener Abengoa. For the 10MW PV plant, the TSK Electronica/Kharafi National joint venture submitted a price of $19.8m, which was marginally lower than the $20.2m price submitted by a group containing Spain’s Maetel.

The projects are part of Kisr’s plans to develop pilot projects for solar and wind energy in Kuwait. In 2011, it recruited Germany’s Lahmeyer International to conduct a study to select the optimal renewable energy solutions for the state.

Prequalification applications for the engineering, procurement and construction (EPC) and operation and maintenance (O&M) of the three schemes in phase one were invited by Kisr in September 2012.

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