“We … need an increase in solar energy, which is considered the cheapest type of energy….. If we do not reduce energy spending, it will put us back in danger and will affect the state budget,” Al-Hajraf said.
The Gulf state holds about 7 percent of global oil reserves and like its peers in the Gulf Cooperation Council is a major per capita emitter of greenhouse gases. But it aims to have an installed renewable energy capacity of around 22 gigawatts by 2030 to balance its oil production capacity of more than 3 million barrels per day.
Yet the country’s renewable energy capacity is expected to account for less than 10 percent of its total electricity production by the end of 2030 and analysts agree that the country is lagging behind.
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Robin Mills, CEO of Qamar Energy, describes the announcement as a positive development, saying Al-Hajraf is a known advocate of renewables. But he says Kuwait’s problem has been in moving large projects forward, notably the Al-Shagaya solar development.
“This is a pity, as Kuwait has not only good solar resources but also wind, and, as it uses large amounts of fuel oil and imported liquefied natural gas, renewables would save on air pollution and reduce costs substantially,” Mills says.
Kuwait has the “money, incentives and resources” to catch up with its neighbours, he says, at least on the level of domestic use of renewables, but the country will need to “overcome its chronic problems of project delivery”.
Tadhg O’Donovan, chief scientist at Heriot-Watt University Dubai, agrees that governance challenges and a historical dependence on oil revenue have slowed Kuwait’s progress on renewables.
However, unlike regional counterparts such as Saudi Aramco or Adnoc, Kuwait’s national oil companies have yet to embark on diversification or decarbonisation initiatives, he says.
Analysts at BMI predict the solar power capacity of the wider Middle East and North Africa region is poised to grow “significantly”, increasing its share of global capacity from less than 1 percent in 2022 to 3 percent by 2033.
But Kuwait failed to make its list of the top 10 countries in the region in the value of renewable energy projects under execution, according to Statista, a data provider. Statista said that the value of renewable projects in Saudi Arabia exceeds $10 billion, followed by the UAE (almost $8 billion), Egypt ($6 billion) and Morocco ($3 billion).
Total energy supply (TES) includes all the energy produced in or imported to a country, minus that which is exported or stored. It represents all the energy required to supply end users in the country. Some of these energy sources are used directly while most are transformed into fuels or electricity for final consumption.
Energy production includes any fossil fuels drilled and mined, which can be burned to produce electricity or used as fuels, as well as energy produced by nuclear fission and renewable power sources such as hydro, wind and solar PV. Bioenergy - which here includes both modern and traditional sources, including the burning of municipal waste - is also an important domestic energy source in many countries.
Imports, particularly of fossil fuels like oil, natural gas and coal, make up an important part of the energy supply in many countries. Countries that rely heavily on imported energy may be vulnerable to supply disruption from external events such as the Covid-19 pandemic and the war in Ukraine. In countries that export large amounts of energy, falling energy prices can also cause major economic shocks.
Energy sources, particularly fossil fuels, are often transformed into more useful or practical forms before being used. For example, crude oil is refined into many different kinds of fuels and products, while coal, oil and natural gas can be burned to generate electricity and heat. Other forms of transformation, such as extracting gas or oil from coal, play a relatively minor role in the energy systems of most countries.
One of the most important types of transformation for the energy system is the refining of crude oil into oil products, such as the fuels that power automobiles, ships and planes.
Another important form of transformation is the generation of electricity. Thermal power plants generate electricity by harnessing the heat of burning fuels or nuclear reactions – during which up to half of their energy content is lost. Renewable power sources generate electricity directly from natural forces such as the sun, wind, or the movement of water.
Total final consumption (TFC) is the energy consumed by end users such as individuals and businesses to heat and cool buildings, to run lights, devices, and appliances, and to power vehicles, machines and factories. It also includes non-energy uses of energy products, such as fossil fuels used to make chemicals.
Some of the energy found in primary sources is lost when converting them to useable final products, especially electricity. As a result, the breakdown of final consumption can look very different from that of the primary energy supply (TES). Both are needed to fully understand the energy system.
The sectoral breakdown of a country''s energy demand, which is based on its economy, geography and history, can greatly impact its energy needs and which energy sources it relies on to meet those needs – such as fueling automobiles, heating or cooling homes or running factories.
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