Saudi Arabia’s ACWA Power has announced a definitive agreement to acquire French utility Engie’s stakes in key power and water desalination assets in Kuwait and Bahrain for $693 million.
The strategic move aims to boost ACWA Power’s presence in the Gulf region as it makes its inaugural entry into the Kuwaiti market and expanding its footprint in Bahrain.
The acquisition covers a combined operational capacity of 4.61 gigawatts (GW) of gas-fired power generation and water desalination facilities capable of producing 1.11 million cubic meters per day.
Specifically, ACWA Power will acquire an 18% stake in Kuwait’s Az Zour North Independent Water and Power Project (IWPP). In Bahrain, the company will take over 45% stakes in both the Al Ezzel Independent Power Project (IPP) and the Al Dur IWPP, as well as a 30% stake in the Al Hidd IWPP. The deal also includes the acquisition of associated operations and maintenance companies in both countries.
Completion of the transaction is subject to customary regulatory and stakeholder approvals.
This acquisition aligns with ACWA Power’s strategic objectives to expand its portfolio and strengthen its position as a leading provider of power and water solutions in the Middle East. By entering the Kuwaiti market, ACWA Power aims to tap into new opportunities and contribute to the country’s energy and water infrastructure development.
“This acquisition represents a pivotal milestone for ACWA Power, reinforcing our position as a global leader in water desalination. We consolidate our presence in Bahrain, where we are already a reliable supplier of power and water, and we enter Kuwait, where we recently submitted a bid for a large power and desalination plant,” said Marco Arcelli, CEO of ACWA Power.
ACWA Power has demonstrated robust financial performance in recent years. In the first half of 2024, the company reported net profits of SAR 926.79 million, marking a 32.06% increase compared to the same period in the previous year. Revenues during this period reached SAR 2.81 billion, reflecting a 2.58% growth.
The company’s expansion strategy has been evident through significant project launches and financial closures. In 2023, ACWA Power added a record 10.7 GW of power generation capacity, with 66% derived from renewable sources. The year also saw the company achieving 12 financial closures, raising approximately SAR 60 billion, the highest in its history.
The Middle East’s energy sector is undergoing a transformative phase, with countries like Kuwait and Bahrain investing heavily in infrastructure to meet growing demand. Kuwait has been focusing on diversifying its energy mix and enhancing desalination capacities to address water scarcity. Bahrain, on the other hand, has been upgrading its power generation and water desalination facilities to support economic growth and improve service reliability.
By leveraging its expertise and expanding its operational footprint, ACWA Power is poised to contribute significantly to the sustainable development of Kuwait and Bahrain’s infrastructure.
This move not only enhances ACWA Power’s portfolio but also aligns with its long-term vision of becoming a global leader in the energy transition, focusing on sustainable and efficient solutions to meet the world’s growing energy and water needs.
