ACWA Power Expands Gulf Portfolio with $693 Million Acquisition in Bahrain and Kuwait

Saudi utility giant ACWA Power has strengthened its regional presence by acquiring a $693 million stake in power generation and water desalination companies in Bahrain and Kuwait.

The company purchased holdings in four major projects by acquiring shares previously held by the regional subsidiary of French utility developer Engie. The deal includes a 45 percent stake in Al-Ezzel and Al-Dur projects, along with a 30 percent stake in the Al-Hidd facility, all located in Bahrain. Additionally, ACWA Power has secured an 18 percent stake in Az Zour North in Kuwait.

Strategic Expansion in the Gulf Region

This acquisition aligns with ACWA Power’s broader growth strategy, which focuses on low-cost and sustainable energy solutions, including power generation, water desalination, and green hydrogen. The company aims to solidify its leadership in the energy transition across Saudi Arabia, the Gulf Cooperation Council (GCC), and high-growth global markets.

ACWA Power CEO Marco Arcelli described the deal as a “pivotal milestone”, enhancing the company’s role 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,” Arcelli said.

He also emphasized the company’s commitment to localizing operations, developing local talent, and ensuring reliable energy and water supplies for communities and industries.

Operational and Maintenance Portfolio Grows

As part of the agreement, ACWA Power will also acquire stakes in operation and maintenance (O&M) companies responsible for managing the newly acquired facilities. This includes:

• A 50 percent stake in Az Zour North O&M Co.
• Full ownership of Al-Ezzel O&M Co.

These companies oversee a combined capacity of 4.61 gigawatts of gas-fired power generation and 1.11 million cubic meters per day of water desalination facilities across Bahrain and Kuwait.

Long-Term Growth and Future Expansion

ACWA Power’s Chief Investment and Development Officer, Thomas Brostrom, highlighted the significance of the company’s entry into Kuwait, marking a new phase in its regional expansion strategy.

“By making its inaugural entry into the Kuwaiti market through the acquisition of a stake in the Az Zour North Facility, ACWA Power has achieved a significant milestone in its strategic efforts to expand its presence within the regional energy and water desalination sector,” Brostrom stated.

The acquired assets provide secured contracted revenue streams, aligning with ACWA Power’s goal of tripling its assets under management to $250 billion by 2030.

This latest move reinforces Saudi Arabia’s push for sustainable infrastructure development, while positioning ACWA Power as a key driver of the region’s energy transition.