Saudi Arabia’s energy sector witnessed a significant strategic development as ACWA Power, one of the Kingdom’s leading utility and power companies, successfully finalized the acquisition of key power generation and water desalination assets located in Bahrain and Kuwait. This acquisition, which has been widely reported through Tadawul announcements, represents a major expansion of ACWA Power’s operational footprint in the Gulf region and reflects its ongoing ambition to strengthen its position in both conventional and renewable energy sectors.
The assets acquired include gas-fired power generation facilities with a combined capacity of 4.6 gigawatts, alongside water desalination plants capable of producing 1.1 million cubic meters per day. In addition to these core assets, ACWA Power also assumed control over the associated operations and maintenance companies in both Bahrain and Kuwait.
These acquisitions were executed from a subsidiary of the French multinational energy company ENGIE SA, marking a strategic transfer of critical infrastructure in the region.
The transaction itself stems from an earlier agreement signed between ACWA Power and Kahrabel FZE, a subsidiary of ENGIE, under which ACWA Power agreed to purchase power and water assets in Bahrain and Kuwait for a total consideration of $693 million. The scope of the acquisition encompasses multiple high-value projects, including a 45 percent ownership stake in both the Al-Ezzel and Al-Dur projects and a 30 percent stake in the Al-Hidd facility, all located in Bahrain. Complementing these holdings, ACWA Power also acquired an 18 percent stake in the Az Zour North power project in Kuwait, further solidifying its presence in the Kuwaiti energy sector.
ACWA Power’s announcement highlighted that the transaction was completed following the fulfillment of all necessary preconditions outlined in the sale and purchase agreement. This included obtaining all regulatory approvals required in Bahrain, which was a key milestone in finalizing the transfer of ownership. Regarding the Kuwaiti assets, the company noted that a few remaining technical and customary conditions must be satisfied before the deal is formally concluded, signaling that the process is nearing its final stage but is subject to minor procedural steps.
This acquisition comes at a time when ACWA Power has been actively pursuing growth across the Gulf region, aiming to diversify its energy portfolio and expand its capacity in both conventional power generation and renewable energy projects. Earlier this month, the company signed a separate agreement with Bahrain-based Bapco Energies to collaborate on the development of a large-scale solar power plant in the Eastern Province of Saudi Arabia. This project, which will include an integrated battery energy storage system, is expected to have a total generation capacity of up to 2.8 gigawatts once all phases are completed.
The combined effect of these acquisitions and development projects underscores ACWA Power’s commitment to aligning with the Kingdom’s energy diversification goals and Vision 2030 objectives. By integrating both conventional gas-fired assets and renewable energy projects into its portfolio, ACWA Power is positioning itself as a regional leader capable of contributing to the Gulf’s energy security, sustainable development, and long-term economic growth.
Industry analysts note that acquiring operational assets in Bahrain and Kuwait provides ACWA Power with not only immediate generation capacity but also strategic entry into markets with stable regulatory environments and growing demand for both electricity and water. These assets are expected to generate stable revenue streams and offer the company opportunities to optimize operations, implement technological enhancements, and pursue efficiency improvements across both power generation and water desalination operations.
The specific assets acquired in Bahrain include a significant stake in the Al-Ezzel and Al-Dur projects, each representing major components of the country’s energy infrastructure. With a 45 percent holding in both projects, ACWA Power gains substantial influence in operational and strategic decision-making. Similarly, the 30 percent stake in the Al-Hidd facility positions the company to participate in high-level planning and expansion opportunities in Bahrain’s power and water sectors.
In Kuwait, the Az Zour North power plant is one of the country’s most significant power generation facilities. ACWA Power’s 18 percent stake provides a foothold in a key market that continues to experience increasing electricity demand driven by population growth and industrial expansion. By participating in this project, ACWA Power can leverage regional expertise and integrate best practices learned from other Gulf markets to enhance performance and reliability.
The financial and operational integration of these assets into ACWA Power’s portfolio is expected to be complemented by ongoing collaboration with existing management teams and operational personnel, ensuring continuity and minimizing any potential disruptions. The company’s experience in large-scale project management, combined with its technical expertise in power and water systems, positions it well to extract maximum value from the newly acquired facilities.
From a strategic perspective, these acquisitions also provide ACWA Power with opportunities for future expansion and development. By holding significant stakes in multiple high-capacity facilities, the company can explore options to increase output, enhance desalination capacity, and implement renewable energy integration in both Bahrain and Kuwait. This aligns with broader regional initiatives aimed at reducing carbon intensity, improving energy efficiency, and diversifying electricity generation portfolios to include both fossil fuel-based and clean energy sources.
Furthermore, the concurrent development of the solar power plant in Saudi Arabia with Bapco Energies reflects ACWA Power’s commitment to integrating renewable energy and storage technologies into its operations. The planned plant will utilize cutting-edge battery energy storage systems to enhance grid stability and enable greater penetration of solar power, supporting both economic and environmental objectives.
The project’s projected 2.8-gigawatt capacity is a significant addition to the Kingdom’s renewable energy infrastructure and demonstrates ACWA Power’s capacity to execute large-scale, multi-phase projects in collaboration with regional partners.
By combining conventional power generation, water desalination, and renewable energy initiatives, ACWA Power is creating a diversified energy portfolio capable of addressing the region’s evolving needs. The company’s strategic investments in Bahrain, Kuwait, and Saudi Arabia provide a comprehensive approach to energy security, operational resilience, and sustainable growth. Analysts highlight that such moves not only enhance ACWA Power’s market position but also contribute to the Gulf Cooperation Council’s broader goals of regional energy integration, technology transfer, and sustainable development.
ACWA Power’s acquisition of gas-fired power and desalination assets in Bahrain and Kuwait, alongside its renewable energy development projects in Saudi Arabia, marks a significant milestone in the company’s regional expansion strategy. With a total investment of $693 million, these moves provide immediate operational capacity, long-term growth potential, and alignment with regional sustainability goals.
The combined impact of these strategic actions strengthens ACWA Power’s leadership role in the Gulf energy sector, reinforces its commitment to both conventional and clean energy development, and positions the company to meet the increasing demand for electricity and water while supporting environmental and economic objectives across the region.