The Az-Zour North One Power and Water Plant is the first of five phases planned for the Independent Water and Power Project (IWPP) and currently supplies the cleanest source of electricity in the State of Kuwait. Under a 40 year long-term agreement with the Kuwait Ministry of Electricity and Water (MEW), the facility has the current capacity to generate 10% of Kuwait’s power generation and 20% of the country’s water production capabilities.
As Kuwait’s first privately owned and independent energy facility operating under the Public-Private Partnership (PPP) law, 50% of the company’s shares were allocated to Kuwaiti citizens in a public offering that occurred in 2019 before Shamal Az-Zour Al-Oula Power and Water Company K.S.C. (Public) was listed on Boursa Kuwait’s Premier Market in August 2020. This simultaneously enhanced the development of the country’s private sector and public infrastructure.
The Az-Zour North One Power and Water Plant aims to offer Kuwait and its citizens the country’s most environmentally efficient source of energy and increase its capabilities over the coming years to meet an anticipated peak demand of 25 gigawatts (GW) by 2025.
Shamal Az-Zour Al-Oula Power and Water Company K.S.C. (Public)
Beginning commercial operations in November 2016 and listed on Boursa Kuwait in August 2020, Shamal Az-Zour Al-Oula Power and Water Company K.S.C. (Public) is a joint-stock company formed for the development of Az-Zour North One Power and Water Plant. The combined facility is Kuwait’s cleanest and most efficient source of electricity and is dispersed via the country’s national power and water grid operated by the Ministry of Electricity and Water (MEW). The plant has the capacity to generate 10% of Kuwait’s power requirements at peak capacity (1,539MW) and 20% of its water generation capabilities (107 million gallons per day).
The plant was established under Kuwait’s Public Private-Partnership (PPP) law (Law No. 116/2014) that aims to promote the development of public infrastructure by engaging the private sector in the process, and Independent Power and Water Project (IWPP) law (Law No. 39/2010), which allows for Kuwait Joint Stock Companies to undertake the construction and operation of plants that produce more than 500MW.
It is the first stage of the country’s plan to significantly increase capacity over the coming years, and falls within a larger effort to meet an anticipated peak demand of 25 gigawatts (GW) by 2025. The overall IWPP is expected to be developed over five phases, for a total capacity of 4,800 MW of electricity and approximately 280 MIGD of desalinated water, tendered over a period of four to six years to meet a projected rapid increase in electricity demand, which is expected to increase at a high rate of 7.6% per annum against the backdrop of fast economic growth.
The breakdown of Shamal Az-Zour Al-Oula Power and Water Company K.S.C. (Public)’s ownership is as follows:
- 50% is owned by Kuwaiti citizens, distributed through a public offering by the Kuwait Authority for Partnership Projects (KAPP) in 2019.
- 40% is owned by a private consortium comprising ENGIE (formerly GDF SUEZ), Sumitomo Corporation, and A.H. Al Sagar & Brothers.
- 10% is owned by the Kuwait Investment Authority (KIA) and the Public Institution for Social Security (PIFFS), each with a 5% ownership.
Az-Zour North One Power and Water Plant
The treated water and the power produced from the plant are entirely supplied to the country’s national power and water grid operated by the Kuwait Ministry of Electricity and Water (MEW) under a 40-year long-term Energy Conversion and Water Purchase Agreement (ECWPA). ENGIE and Sumitomo undertake the operation and maintenance (AZN O&M) of the plant on an equal share basis. The total construction cost was US$1.7 billion.
The Az-Zour North One Power and Water Plant is the first privately-owned gas-fired combined cycle power and water desalination plant in Kuwait and has a capacity exceeding 1,500 megawatts (MW) of electricity and 107 million imperial gallons of water per day (MIGD), the equivalent of 486 thousand cubic meters per day. The power generated from the facility is equivalent to 10% of Kuwait’s installed power generation capacity, while the water output represents 20% of Kuwait’s water production capacity.
The operation of the Az-Zour North One Power and Water Plant is carried out by Shamal Az-Zour Al-Oula Power and Water Company K.S.C. (Public) and the AZN Operation and Maintenance Company (AZN O&M), a joint venture of ENGIE and Sumitomo Corporation. AZN O&M Company brings international standards of practice through its extensive experience globally and regionally and aims to be the best-in-class power plant operator in Kuwait. The facility contributes a stable supply of electricity and water to the State of Kuwait and operates as a base-load plant with state-of-the-art environmentally-friendly technology.
Environmental Management and Monitoring
The company’s environmental standards include:
- Air quality checks (dust suppression, emissions to air, etc.)
- Prevention of contamination to land
- Control of noise, particularly beyond the site's boundaries
- Energy minimization
- Compliance with the international standard for Environmental Management Systems (ISO 14001)
- Waste management, including the handling and disposal of solid and liquid waste