Bahrain Invests $2 Billion on Power & Water Plants

The Bahraini government has announced its plan to invest nearly $2 billion during fiscal years 2025 and 2026 to establish two independent power and water plants, in addition to solar energy projects.

These investments aim to develop infrastructure and ensure the sustainability and efficiency of the electricity and water networks, with $1.06 billion allocated to expand the electricity and water network to improve reliability and keep pace with growing demand.

These projects include the construction of the Sidra Independent Power Plant, with a production capacity of up to 1.2 GWs of electricity and 30 million imperial gallons per day (MIGD) of potable water.

The power plant is scheduled to begin commercial operation in the second half of 2028, with an initial production capacity of 600 MWs of electricity and 30 MGD of water. The full operation is expected in the second quarter of 2029. The Al Hidd Independent Power Plant will produce 60 MIGD of potable water and full operation is expected to begin in the second quarter of 2028.

Infrastructure Development

In addition, the expansion plan includes the construction of major substations and water distribution stations to reinforce the electricity network, which consists of 258 main transmission stations, 1,906 km of cables, and 10,400 distribution substations. The water network also includes 46 distribution stations and 318 km of transmission pipelines.

The government said it has succeeded in reducing power outages, with the average duration of outages in the grid now reaching just 10 minutes per year. In the same context, the government also said that the Electricity and Water Authority (EWA) was facing an annual deficit of over $530 million, as total production costs exceeded revenues collected from bills.

Regarding electricity and water consumption, the government said there is an annual increase of 5% in electricity consumption and 3% in water consumption. The government confirmed it has reduced power outages to 10 minutes per year.

The government also indicated that the electricity consumption has been increasing 5% while water consumption was up 3% every year.