Restructuring Kuwait Electric Power System: Mandatory or Optional?

Kuwait’s electric power system is vertically integrated organization owned and operated by the government. For more than five decades, the government of Kuwait has provided relatively reliable electric services to consumers with subsidized electric service fees. Given the country’s rapid socio-economical development and consequently the increase of electricity demand, a question that inflicts itself: Is it necessary to reform the power system to face the fast growing demand? This paper recommends that the government should consider the private sector as a partner in operating the power system. Therefore, power system restructuring is needed to allow such partnership. There are challenges that prevent such restructuring. Abstract recommendations toward resolving these challenges are proposed. Keywords—Deregulation, electricity market, ISO, private sector.