Acwa Power bolsters asset base in Kuwait and Bahrain

Saudi Arabia’s Acwa Power has completed the acquisition of power generation and water desalination assets in Kuwait and Bahrain from French utility company Engie.

The assets include a gas-fired power plant with capacity of 4.6 gigawatts (GW), water desalination assets with capacity of 1.1 million cubic feet per day, and related operation and maintenance (O&M) companies in Bahrain and Kuwait, Acwa Power said in a statement to the Saudi stock exchange.

In Kuwait, Acwa Power will acquire Engie’s 17.5 percent stake in the 1.5GW gas and desalination plant in Az Zour North and its 50 percent stake in the associated O&M company.

In Bahrain, the assets acquired include 45 percent stakes in the Al Dur and Al Ezzel renewable projects, and 100 percent of Al Ezzel O&M, which will oversee operations and maintenance at Al Dur and Al Ezzel. In addition, Acwa Power will acquire 30 percent of the Al Hidd O&M company.

All regulatory approvals in Bahrain have been received, but a few technical conditions remain in Kuwait, following which the transaction will be finalised, Acwa Power said.

Further reading:

• Acwa Power bolsters clean energy portfolio
• Acwa Power gets $3bn for new Saudi power plant
• Higher borrowing dents Acwa Power’s profit

The company disclosed in a bourse filing in February that the transaction cost was SAR2.6 billion ($693 million) and that it would add accretive recurring net income and free cash flow based on secured offtake contracts.

Acwa Power signed a joint development agreement this month with Bahrain-based Bapco Energies for a 2.8GW solar plant in Saudi Arabia’s Eastern Province.

All the electricity generated will be transmitted to Bapco’s load centre in Bahrain, accelerating the Gulf nation’s transition to renewable energy. 

In November Acwa Power secured SAR22.3 billion in funding for seven renewable projects in Saudi Arabia that will jointly generate 15,000 megawatts.

Saudi Arabia’s Public Investment Fund owns 44 percent of Acwa Power. The stock closed at SAR192 on Monday, down 50 percent year-to-date.