Kuwait
With a cumulative score of 0.87, Kuwait ranks number 101 among emerging markets and number 130 in the global ranking.
- Emerging markets
- Middle East & Africa
0.99 / 5
Power score
0.58 / 5
Transport score
Buildings score
Only 56 markets (28 emerging markets) are scored on the Buildings sector. See the full list on the methodology page.
Low-carbon strategy
Net-zero goal and strategy
Kuwait is seeking to shift toward a low-carbon economy by 2050 but does not currently have a net-zero goal or strategy.
Nationally Determined Contributions (NDC)
Kuwait’s updated Nationally Determined Contribution (NDC) – meaning its official plan to meet the goals of the Paris Agreement – aims to reduce the country’s greenhouse-gas emissions by 7.4% by 2035 versus a business-as-usual scenario from 2015 levels. The sectors being targeted for mitigation are energy, industrial processes, agriculture and forestry and other land use.
Fossil fuel phase-out policy
Kuwait does not have a fossil fuel phase-out policy.
Power
Power policy
Kuwait’s power generation capacity is primarily based on fossil fuels, namely oil, diesel and natural gas. The country’s 2030 Energy Strategy aims to secure 15% of power generation from renewable energy resources by 2030, and Kuwait has implemented a public-private partnership program to increase renewables capacity. However, only one tender was awarded for a 1.5-gigawatt solar project in 2018. The project has since been stopped due to Covid-19.
Power policies
Power prices and costs
Electricity is heavily subsidized in Kuwait, with the government covering around 90-94% of the cost. This subsidy is seen as a right of citizenship by Kuwaitis, so efforts to decrease the level of support have historically been met with resistance.
Power market
Kuwait has a 100% electrification rate and a peak power demand of 15 gigawatts. The power market is dominated by the Ministry of Electricity and Water, hence there is no competitive retail market. Retail licenses do not appear to be available in Kuwait, as rooftop solar PV is only for self-use. Transmission is also provided by the government.
Installed Capacity (in MW)
Electricity Generation (in GWh)
Utility privatisation
Which segments of the power sector are open to private participation?
Wholesale power market
Does the country have a wholesale power market?
Doing business and barriers
Fossil fuels are subsidized, and there is no single entity that has been mandated to set a strategy for increasing renewable capacity, creating a fragmented environment.
Currency of PPAs
Are PPAs (eg. corporate PPAs and all other types) signed in or indexed to U.S. Dollars or Euro?
Bilateral power contracts
Can a C&I (Commercial and Industrial) customer sign a long-term contract (PPA) for clean energy?
Fossil fuel price distortions - Subsidies
Does the government influence the wholesale price of fossil fuel (used by thermal power plants) down through subsidies?
Fossil fuel price distortions - Taxes
Does the government influence the wholesale price of fossil fuel (used by thermal power plants) up through taxes or carbon prices?
Transport
EV market
Kuwait’s government has yet to implement any substantive policy support in this sector and the electric vehicle (EV) market remains at an early stage.
EV policy
Kuwait’s government has yet to implement any substantive policy support in this sector and the electric vehicle (EV) market remains at an early stage.
Transport policies
Fuel economy standards
Does the country have a fuel economy standard in place?
Buildings
Buildings market
Kuwait is currently working to increase the energy efficiency of its buildings. Government buildings are required to source 10% of their energy from renewables, and the country has also implemented the Renewable Building Code and Green Building Code.
Energy efficiency policy
Does the country have a national energy efficiency plan?
Energy efficiency policy
Are there minimum energy performance standards for buildings?
Energy efficiency incentives
Is there access to loans or grants for energy efficiency measures (i.e. Wall or loft insulation or double glazing)?
Buildings policy
Kuwait is currently working to increase the energy efficiency of its buildings. Government buildings are required to source 10% of their energy from renewables, and the country has also implemented the Renewable Building Code and Green Building Code.
Buildings policies
Additional insights
from BNEF
Explore more detailed information on global commodity markets and the disruptive technologies driving the transition to a low-carbon economy.
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