ACWA Power Expands Regional Presence with Major Power and Water Asset Acquisition

Saudi utility giant ACWA Power has finalized the acquisition of power generation and water desalination assets in Bahrain and Kuwait from a subsidiary of French energy company ENGIE SA. The company confirmed the completion in a statement to Tadawul, highlighting the strategic expansion of its operations in the Gulf region.

The acquired assets include gas-fired power plants with a combined capacity of 4.6 gigawatts and water desalination facilities capable of producing 1.1 million cubic meters per day. The deal also encompasses associated operations and maintenance companies in both Bahrain and Kuwait.

ACWA Power entered into an agreement with Kahrabel FZE, an ENGIE subsidiary, to acquire these assets for $693 million. The transaction includes a 45 percent stake in the Al-Ezzel and Al-Dur projects and a 30 percent holding in the Al-Hidd facility in Bahrain. In Kuwait, the company acquired an 18 percent share in the Az Zour North project.

The company stated that the acquisition was completed after fulfilling all conditions precedent outlined in the sale and purchase agreement, including receiving regulatory approvals in Bahrain. ACWA Power added that only a few standard technical requirements remain for the Kuwaiti assets before the transaction is fully finalized.

This acquisition follows ACWA Power’s recent collaboration with Bahrain-based Bapco Energies to develop a large-scale solar power plant with an integrated battery energy storage system in Saudi Arabia’s Eastern Province. The project is expected to reach a total generation capacity of up to 2.8 gigawatts across multiple phases, marking another step in the company’s growing renewable energy portfolio.

ACWA Power has emphasized that the expansion of its portfolio in the Gulf aligns with its long-term strategy of diversifying energy sources and increasing regional infrastructure capabilities. The newly acquired assets will strengthen its role in power and water supply, supporting growing demand in Bahrain and Kuwait.

The company’s move into both conventional and renewable energy projects reflects a broader trend in the region, where utilities are actively combining traditional gas-fired power with large-scale solar and storage solutions. With these acquisitions, ACWA Power positions itself as a key player in the Gulf’s energy transition while maintaining a robust presence in essential utilities.

Analysts note that the deal not only enhances ACWA Power’s generation capacity but also expands its footprint in critical infrastructure sectors, offering the company operational synergies and potential long-term revenue growth from water and electricity services across Bahrain and Kuwait.