Market Size of Kuwait Power Industry
|2020 - 2029
|Base Year For Estimation
|Forecast Data Period
|2024 - 2029
|Historical Data Period
|2020 - 2022
|> 3.00 %
*Disclaimer: Major Players sorted in no particular order
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Kuwait Power Market Analysis
The Kuwaiti power market is expected to register a CAGR of over 3% during the forecast period. Factors, such as increased demand for air-conditioning services in Kuwait, which accounts for 70% of the residential electricity demand, and the increasing share of personal passenger cars in the overall transport mix, are expected to drive the power market during the forecast period. Moreover, Kuwait's government policies to increase the market share of independent power producers are further likely to promulgate the market. However, the volatile crude oil prices are expected to have a negative impact on the power generation sector as the majority of the power generation in the country comes from fossil fuels.
- Natural gas is increasing its share in the Kuwait energy mix and is expected to be the fastest-growing segment in the market, supported by the country's diversification of its electricity generation supply portfolio by replacing crude oil with natural gas.
- Kuwait has abundant availability of solar irradiance and receives solar energy throughout the year. This has created enormous opportunities in the renewable sector to exploit solar energy from the sunniest sites in the country, with the government's target of 15% in the country's overall electricity mix by 2030.
- Despite the decline in global oil prices, Kuwait signaled continued commitment to its stated production targets and investment programs and has ambitious oil and gas production targets, which are expected to drive the power generation during the forecast period.