Future of Oil with Alternative Energies for Kuwait

Executive Summary

The development of alternate energy strategies around the world is undoubtedly a step in the right direction for the future of energy generation. However, any change in the existing dynamic would have implications on the incumbent, which in this case would be Oil and Gas. The case is stronger for Kuwait whose economic activity revolves around fossil fuels.

Kuwait has been witnessing a rise in demand for electricity during the last few decades thanks to strong economic development and rapid urbanization supported by the abundance of fossil fuel resources in the country. Kuwait's total installed capacity for electricity generation has increased at a CAGR of 6.4% in the past ten years indicating the growth in domestic demand.

Rise in population during the coming years in addition to the ambitious initiatives taken by the government to develop the country's infrastructure is expected to drive demand for energy further. This would lay additional pressure on existing oil and gas resources, which are currently the primary fuel used for power generation. In order to bridge the supply-demand gap, Kuwait will need to move towards alternate sources of energy.