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KUWAIT: Solar power is coming to Souq Sharq, with an 8.77-megawatt photovoltaic system planned across the waterfront complex’s rooftops and carports. The project is believed to be the first of its kind in Kuwait’s private sector.
The Alternative Energy Projects Company (AEPCo) has signed an agreement with United Real Estate Company (URC), through its subsidiary Marasi United, to develop the system, according to a press release published on URC’s website.
AEPCo will provide engineering, procurement and construction services and operate and maintain the system for 15 years. The project is expected to reduce approximately 189,000 metric tons of carbon dioxide emissions over its lifetime, URC said.
“The solar power system will generate enough electricity annually to supply approximately 110 residential homes,” the company added.
The project is part of Souq Sharq’s wider redevelopment under a 15-year Build-Operate-Transfer arrangement awarded to URC in February 2026. It’s scheduled for completion by the end of 2027.
“The solar installation represents a significant step toward expanding renewable energy adoption in Kuwait’s commercial real estate sector,” URC Group CEO Mishari Suleiman Al Muhailan said.
The project supports New Kuwait Vision 2035, which targets renewable energy accounting for 15 percent of Kuwait’s power demand by 2030.
A 40-year solar experiment
Kuwait has a strong natural resource for reaching that target: sunlight. According to a study by Ayedh Alqahtani and co-authors published in the Journal of Engineering Research, Kuwait receives between 2,500 and 3,000 hours of sunshine a year, with average daily solar radiation of about 5.5 kilowatt-hours per square meter. The country’s high levels of solar radiation have made photovoltaic power a particularly relevant option for Kuwait.
The country installed its first known photovoltaic system at the Kuwait English School in 1985, with a capacity of 24.2 kilowatts. Since then, solar power has been tested in settings ranging from oil fields and government buildings to cooperative societies and homes.
One of the biggest projects was the first phase of the Shagaya Renewable Energy Park, commissioned in 2018. It included 10 MW of photovoltaic capacity, along with 10 MW of wind power and 50 MW of concentrated solar power.
Solar has also been used in the oil sector. The 10 MW Sidra 500 plant, commissioned in 2016, supplies half of its electricity to the national grid, while the other half powers electrical submersible pumps at the Umm Gudair oilfield.
Smaller projects have also seen solar installed in court complexes and the Public Authority for Applied Education and Training’s Ardiya campus.
A bigger challenge
Kuwait may have plenty of sunlight, but expanding solar power is not just a matter of building more panels. A 2025 report by the London School of Economics Middle East Centre points to wider challenges in the country’s energy system.
The report, Shaping an Eco-Kuwait: From Policies to Practice, describes Kuwait’s approach to climate action as “siloed.” Authors Alexandra Gomes, Asseel Al-Ragam and Sharifa Alshalfan say responsibility for climate and energy goals is spread across several institutions with different priorities.
They argue that Kuwait lacks a strong, overarching authority to coordinate those efforts and suggest creating a Renewable Energy Agency under the Cabinet to serve as a central body for climate initiatives. The researchers also say the private sector has an important role to play, particularly in advancing new technologies and developing energy services.
Another challenge is consumption. Years of reliable, heavily subsidized energy have shaped how people use electricity and how businesses invest, creating what researchers call “behavioral inertia.” They say this could make the shift to a more flexible, decentralized renewable energy system more difficult.
Kuwait consumes about 15,590 kilowatt-hours of electricity per person, among the highest levels in the world, according to the report. If current patterns continue, demand could triple by 2030, with air conditioning driving sharp peaks in summer.
Kuwait has set a target of generating 15 percent of its power demand from renewable sources by 2030 and 50 percent by 2050. But setting targets alone is not enough. The researchers say Kuwait needs stronger regulatory frameworks, better energy-efficiency measures and an energy market that can accommodate the fluctuating supply of renewable sources.
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