In 2006, Bahrain had 2.3 gigawatts (GW) of installed electric generating capacity, all of which came from conventional thermal sources, mostly natural gas with some oil, and generated 9.2 billion kilowatthours (Bkwh) of electricity. Officials from Bahrain’s Ministry of Electricity and Water (MEW) expect that electricity demand will grow by 7 percent annually through 2020. To help meet rising demand, Bahrain has encouraged independent power projects (IPPs) and has allowed the privatization of some state-owned power sector assets. Bahrain’s first IPP power station, the natural gas-fired Al Ezzel plant, started commercial operations in 2006 with an initial capacity of 470 megawatts (MW). Phase 2 added 480 MW, bringing the total capacity to 950 MW during 2007. Al Ezzel accounts for 30% of the generating capacity available at present. In January 2006, Bahrain’s government announced the sale of the state-owned Al Hidd power and desalination plant to a consortium of private companies, which formed the Hidd Power Company (HPC). Al Hidd is the largest power plant in Bahrain, with 965 MW of current generating capacity and plans to expand the facility in the future.

In November, 2007 the Ministry of Electricity and Water announced plans for a $1 billion electric power and desalination project. The new power station will be located at Al Dour and is on track to open in 2010, according to a February 4, 2008 announcement by Minister al Jowder to the Bahrain News Agency. It will produce 1,200 MW of electricity daily and 48 million gallons of desalinated water in its first phase. The project will be the country’s third IPP. There are 3 other power stations: at Rifa, with a capacity of 700 MW, at Manama, with 167 MW, and at Sitra, with 125 MW. The ministry also said that peak power demand was nearing total capacity, which is currently about 2,230 MW.

Sector Organization

In February 2008, Bahrain’s Works Minister, Fahmi Bin Ali Al Jowder, was appointed Minister in charge of the Electricity and Water Authority, giving the sector increased administrative and financial independence. The Authority has prepared a strategic plan until 2020, which includes a study of all facilities. According to the plan, Bahrain needs a new power station with a daily capacity of 3500 MW of electricity and 90 million gallons of desalinated sea water. Planned projects include rehabilitation of the second and third phases of the Sitra electricity and water station. Work on the project is to start in October 2008 and be complete by mid-2009. In 2010, Ras Qareen station is expected to start production at a daily capacity of 1200 MW of electricity and 48 million gallons of desalinated water. The plan also aims to develop Bahrain’s electricity distribution network between 2007 and 2011 by creating 39 new stations.

Gulf Cooperation Council (GCC) Electricity Grid

The GCC power-grid project will link the six-member GCC (Saudi Arabia, Qatar, Bahrain, Kuwait, Oman and the United Arab Emirates) with an integrated electricity network. The aim of the project is to reduce the cost of power generation in the six GCC states. Work on the project started in September 2005 and is expected to be completed by 2010. The project is being carried out in three phases. In the first phase, an 800-km 400-kV overhead line will link Kuwait's Al-Zour power station with Doha, and a 400-kV submarine line will link Saudi Arabia with Bahrain. The second phase will link the UAE with Oman. The resulting two megagrids will be joined in the final phase. Once the grid is ready, Kuwait and Saudi Arabia will each receive an extra 1200 MW of power capacity, the UAE will receive 900 MW, Qatar 750 MW, Bahrain 600 MW and Oman 400 MW. The total cost of this project is estimated at $1.95 billion. Around 45% of the first phase of the Gulf Cooperation Council’s electricity interconnection grid was completed in October 2007.