Price reform in Kuwait’s electricity and water: assessing the benefits

Journal article

Kuwait’s electricity and water sector has been in disarray for several years, struggling with several decades of fast-rising demand resulting from industrialization, rapid population growth, rising living standards amongst its citizens, as well as the artificially low consumer prices set by the government. The country’s electricity demand has been growing at an impressive rate, estimated at an annual rate of 5.3 per cent between 1999 and 2009, and its per capita electricity consumption has exceeded 16,000 kWh, one of the highest in the world. With per capita water consumption of 500 litres per day, Kuwait is also the world’s largest water consumer. According to Kuwait Institute for Scientific Research (KISR), the current cost of providing a reliable source of fresh water in Kuwait (principally through desalination plants) exceeds US$1.2 billion annually. By 2050, given current consumption patterns, it is estimated that the majority of the country’s oil-generated revenue will be required to fund the increased production of desalinated water.

Authors: Fattouh, B; Mahadeva, L

• Publication status: Published
• Peer review status: Peer reviewed
• Publisher: Oxford Institute for Energy Studies
• Journal: Oxford Energy Forum
• Issue: 96
• Pages: 30-32
• Publication date: 2014-06-16
• ISSN: 0959-7727
• Language: English
• Keywords: OIES