Electricity is also heavily subsidised, which has limited the development of Kuwait’s renewables market. Kuwait holds about 7 percent of global oil reserves and has one of the lowest crude oil production costs of around $10 per barrel.
Kuwait, Opec’s fifth-largest oil producer but long a laggard in the energy transition, is taking steps to catch up with its neighbouring Gulf states and ease reliance on falling oil revenues.
Kuwait holds about 7 percent of global oil reserves and has one of the lowest crude oil production costs of around $10 per barrel. But despite the windfall from oil, the country suffers from power outages amid growing electricity demand and lack of infrastructure maintenance, Alajmi said.
Kuwait anticipates producing green hydrogen at competitive costs, estimated between $3.22 and $4.41 per kilogram, by 2032. But to succeed, Kuwait will need to convince investors that it has dealt with slow decision-making and demonstrate an ability to move projects forward, analysts say.
Eos, ESS Tech Inc and Energy Vault, the three big-name non-lithium energy storage firms that listed via SPAC deals, saw weak third quarter results. The US battery storage system integrator arm of Korean battery manufacturer LG Energy Solution (LG ES) has signed a 4-year supply deal with developer Terra-Gen.