Kuwait could significantly lower its massive subsidies in power generation by taking simple efficiency measures and then investing the savings into renewable energy.

Speaking at the MEED Kuwait Energy & Efficiency conference on 2 June, Michiel J Haverkorn van Rijsewijk, division director for renewable energy for the Dutch consultancy Ecofys, said that simple steps could lead over time to savings of billions of Kuwait dinars.

“Simple measures such as white roofs, air-conditioning settings and reflective foils could lead to annual savings of KD25m ($88m) ,” he said. “If this is reinvested into renewable energy each year over four years it means that your subsidy and investment level has not risen.”

Kuwait spent KD3.5bn on energy subsidies in 2012 and fuel costs rose 24 per cent on 2011. It is expected to invest KD18bn on 12GW-worth of power projects between now and 2020 to meet demand.

However, Van Rijsewijk, argued that investing in renewable energy could peg subsidies costs at 2014-15 levels by 2020, resulting in relative savings of KD1bn in subsidy savings, as well as having KD1bn-worth of renewables investments.

“Kuwait’s best renewable option is solar photovoltaic ( PV) because the peak load requirement for energy correlates exactly with the most effective time for solar PV,” said Van Rijsewijk.  

Kuwait has a peak load requirement in the summer months of 12GW, compared with an average of 4GW during the rest of the year. This relates to about 1,000 hours of peak demand during the summer.

Only 335MW of renewable energy projects are being planned by Kuwait.