In July 2025, ACWA Power completed key framework agreements and memoranda of understanding with international stakeholders. This transformational step is designed to facilitate a green hydrogen and renewable energy export value chain, connecting the Kingdom of Saudi Arabia to Europe. These agreements further expand the ability to export renewable energy. They make logistics connectivity richer between the two regions as well.
The initiative is particularly timely, as Saudi Arabia has been grappling with managing energy demand through scheduled power cuts in certain areas since 2024. The government’s investment in renewable energy solutions will go a long way in addressing these challenges, corraling climate change, and creating new sustainable economic opportunities.
Shagaya Renewable Energy Project
The Kuwaiti government is planning to conclude an implementation agreement with China by the beginning of 2026. Under this agreement, phases three and four of the Shagaya renewable energy project will be undertaken. That ambitious project, located in Kuwait, is on track to reach a total capacity of 3.2 gigawatts (GW). This recent partnership with China is further evidence of Kuwait’s dedication to building developed renewable energy expertise and capacity.
On our last day on the road, Asmaa Al-Mousa, director general of the Kuwait Authority for Partnership Projects (KAPP), shared tremendous news about the Shagaya project. She further clarified that its expansion would be funded by private investors rather than pursuing government financing. This strategy is part of a larger movement across the state to draw foreign investment into local renewable energy projects.
Future Prospects
The next phase of the Shagaya project expansion will span three years. By 2028, we expect a drastic increase in the reliability and sustainability of our energy usage. Adel Al-Zamel, one of the most influential stakeholders in these unprecedented advances, shared his positive outlook for the future, saying,
“If [the projects] go according to plan, by 2028 our situation will be much better.”
Saudi Arabia and Kuwait continue to prioritize their state-run energy sectors. Despite being in the business to make money, they take their responsibility to the environment seriously.
Saudi Arabia’s commitment to austerity and enhancing the world’s logistics connectivity underpins these transformational efforts. These latest agreements by ACWA Power continue to form an emerging green hydrogen and renewable energy export value chain. This announcement will strengthen trade and cooperation between the two regions, greatly improving their respective energy sectors.