In a landmark move for the GCC utilities sector, Saudi-based Acwa Power (formerly ACWA Power) has officially completed its acquisition of French energy giant Engie’s stake in Kuwait’s Az-Zour North One Power and Water Plant. This transition marks a significant shift in the ownership of Kuwait’s first privately-owned Independent Water and Power Project (IWPP), solidifying Acwa Power's footprint in the Kuwaiti market.
The deal, part of a larger $693 million (SAR 2.6 billion) portfolio acquisition involving assets in both Bahrain and Kuwait, was finalized in January 2026 following the fulfillment of technical conditions.
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Transaction at a Glance
| Feature | Details |
| Acquired Stake | 17.5% Equity in Az-Zour North One |
| O&M Ownership | 50% stake in Az-Zour North O&M Company |
| Seller | Engie (via subsidiary Kahrabel FZE) |
| Buyer | Acwa Power |
| Facility Capacity | 1.5 GW+ Electricity | 107 MIGD Desalination |
| Project Value | Part of a broader $693M regional portfolio deal |
| Operational Impact | No change to existing 40-year ECWPA with Kuwait Ministry |
Key Highlights of the Acquisition
- Strategic Entry: This represents a major milestone for Acwa Power, marking its inaugural entry into the Kuwaiti power and water sector as an owner-operator.
- Asset Portfolio: Beyond Kuwait, the total deal includes gas-fired assets with a capacity of 4.6 GW and water desalination assets of 1.1 million cubic meters per day across the region.
- Stability Guaranteed: Shamal Az Zour Al Oula confirmed that the ownership change will not affect contractual commitments or day-to-day operations under the current agreement with the Ministry of Electricity, Water, and Renewable Energy.
- Ownership Structure: The project remains a model of public-private partnership, with 50% owned by Kuwaiti citizens and the remainder split between the private consortium (now including Acwa Power) and government entities (KIA and PIFFS).
Deep Analysis: The Changing Guard in GCC Energy
This acquisition is more than a simple transfer of shares; it reflects the evolving strategy of global energy players. Engie is actively divesting from thermal and gas-fired assets to align with its Net Zero by 2045 commitment. Conversely, Acwa Power is aggressively expanding its portfolio to reach its target of $250 billion in assets under management by 2030.
By acquiring a stake in a "base-load" plant like Az-Zour North One—which provides roughly 10% of Kuwait’s power and 20% of its water—Acwa Power secures long-term, predictable cash flows. Furthermore, this move positions the Saudi giant favorably for upcoming tenders, such as the Az-Zour North 2 and 3 projects, which are valued at approximately $4 billion.
Impact Assessment
1. For Kuwait’s Energy Security
The transition to a regional specialist like Acwa Power ensures the continued application of world-class Operation and Maintenance (O&M) standards. Since the plant utilizes high-efficiency CCGT (Combined Cycle Gas Turbine) and MED (Multi-Effect Distillation) technology, Acwa Power’s expertise is likely to maintain or improve current availability rates.
2. For Regional Integration
This deal highlights the increasing synergy between Saudi and Kuwaiti infrastructure. It underscores the trend of "Regional Champions" taking over assets previously held by European utilities, keeping investment and expertise within the GCC.
3. Financial Implications
For Acwa Power, the acquisition is expected to be accretive to net income. By taking over Engie’s 50% stake in the O&M company, Acwa Power also gains direct control over the service revenue streams, which are typically high-margin and stable.
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