Kuwait's power grid is in severe crisis.

Kuwait's power grid is experiencing a severe crisis, unable to cope with rising demand. The reasons are aging networks, a lack of investment in generation modernization, a lack of renewable energy sources, and inefficient energy consumption.

The country faces an annual shortfall of approximately 7.3% of electricity demand. For the second year in a row, Kuwaiti authorities have been regularly cutting off power to industrial consumers during peak hours from 11:00 a.m. to 5:00 p.m. from April to August.

Firefighters are warning residents not to use elevators in case of emergency power outages, and the government is asking residents not to turn on air conditioners at full power, to use energy-saving light bulbs, and to avoid unnecessary electrical appliances.

Over the past 10 years, the country has seen 15 energy ministers, and not one of them has taken responsibility or made a decision to launch a program to modernize the energy sector.

Electricity consumption in the country is subsidized. Subsidies reach $3,200 per person, meaning electricity bills cover only 5% of energy costs.

Kuwait's power generation primarily runs on fuel oil and gas. Experts estimate that the energy supply problem could be solved by developing solar power in this hot country, where 90% of the territory is desert. To meet all demand, including in the summer, approximately 50 GW of solar power could be built on 5% of the country's land area.

Kuwait had planned to increase the share of renewable energy in its energy mix to 15% by 2030, but experts admit this goal is no longer achievable. The country lacks domestic solar panel production technology, and its solar panel import volume for 2024 was only $1.5 million, less than Liberia and South Sudan.

To somehow solve the problem, the country's authorities began purchasing LNG, in quantities disproportionate to its population. Last year, Kuwait imported roughly the same amount as the United Kingdom, which has a population 14 times larger.