meed-logo

line1 line2 line3
SIGN IN / REGISTER

Transforming Bahrain’s electricity and water sector

19 December 2023

 

Register for MEED's guest programme 

In June 2022, Kamal bin Ahmed Mohammed was appointed president of Bahrain’s Electricity & Water Authority after overseeing the delivery of major projects, including the new terminal at Bahrain International airport, as transport minister. 

Mohammed is quick to stress how essential EWA is to Bahrain.

“EWA is an important entity in Bahrain. Its infrastructure is an enabler for economic growth as well as for the social development of Bahrain,” he says.

“The customer base of EWA is the whole of Bahrain – the Bahrainis and the people living here. It has the largest customer base in Bahrain, with 468,000 customers. It is also a big employer with about 2,200 people.

“We are one of the biggest asset-based entities in Bahrain. It has BD2.4bn ($6.4bn) of assets, and if it becomes a company, it would be one of the biggest companies in Bahrain,” he says.

Government company

Mohammed’s last point is crucial as Bahrain’s electricity and water industry embarks on a transformation.

“The plan now is to transform the industry as a whole,” he explains.

“I have been given a mandate to make sure we have the right structure for Bahrain’s electricity and water industry. We are now in the process of establishing a regulatory body for electricity and water. 

“We have a team working on that, as well as turning EWA from a government authority into a government company. That is the first stage, to corporatise.”

Transforming the industry is a major undertaking. “It requires a lot of things to be done,” says Mohammed. “EWA will need to be licensed by the regulator. For that, we have developed a transformation plan comprising different strategic themes and programmes. 

“Hopefully, within the next two years, we will be able to achieve and deliver our objectives.” 

When asked if the plan is for EWA to follow in the footsteps of Dubai Electricity & Water Authority (Dewa) and eventually launch an initial public offering (IPO), Mohammed says that will be a decision for the future.

“The first phase is to corporatise and be owned by the government. The government can decide at a later stage if it is the best decision to divest part of it in the local market. That is another phase; we are now focusing on corporatisation.”

Asked if the plan is to follow in Dewa’s footsteps and launch an IPO, Mohammed says that is a decision for the future

Energy transition

Bahrain’s electricity and water industry is being transformed at a time of great change in the industry globally as countries commit to decarbonisation targets. Bahrain has committed to achieving net zero by 2060.

“EWA has an important role to play in this process and this is why we have developed our energy transition plan,” says Mohammed.

“We have set our target to increase clean, renewable energy in our energy mix during the next one or two years. Our targets now are to be 5 per cent renewable by 2025, and 20 per cent by 2035.”

Reducing carbon emissions involves supply and demand measures. To help manage demand, in early December EWA launched the Kafaa programme in cooperation with Energy Service Companies to increase the efficiency of energy consumption in government buildings.

The aim is to save electricity consumption by around 975 gigawatt hours and reduce carbon emissions by about 488,000 tonnes by 2040. 

The programme will also work with the private sector. “We already have commitments from big entities and financial institutions. They are ready to take part because although they will spend a few hundred thousand dinars improving their efficiency, they will recover their money in two years. Our pilot study showed that it takes two to three years to recover the initial investment,” says Mohammed.

Although this may dent EWA’s revenues in the short term, Mohammed explains there is a bigger picture.

“In the long term, it is better for EWA because it means it can delay capital investments. And today, 67 per cent of EWA’s costs are production, so if we can delay future production, it means we will save money over time,” he adds.

For supply, Bahrain has introduced a net metering project, which allows people or businesses to generate electricity and, when not used, feed back into the grid.

“We already have 50MW connected to the grid. We have another 150MW in progress, and we think that by the end of 2026, we will have 300MW connected to the network,” says Mohammed.

Future projects

With limited land available for solar plants, floating solar plants are attractive future projects for Bahrain. Other alternative energy sources, including nuclear and small modular reactors, are also being monitored for future use.

As renewable energy projects come online, Bahrain is closing down old power-generating assets.

“The last part of our energy transition plan is to shut down the old cogeneration plants,” says Mohammed. “We closed the Sitra power plant, and we have also closed Riffa 1. During the next two to three years, we will close two plants: one at Hidd and the Riffa 2 power plant.”

With renewable energy unable to provide the baseload Bahrain needs at night, there are plans to build one more gas-fired power plant. “Using less gas, it will be what we hope will be the last gas-fired power plant in Bahrain,” says Mohammed.

https://image.digitalinsightresearch.in/uploads/NewsArticle/11375979/main.gif
Colin Foreman

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Riyadh sets December deadline for Prince Mishaal Road

    20 November 2025

     

    The Royal Commission for Riyadh City (RCRC) has allowed contractors until 3 December to submit bids for a contract to develop Prince Mishaal Bin Abdulaziz Road Axis-Taif Road in Riyadh.

    The previous deadline was 19 November.

    The scope of work covers general road improvement works, including street upgrades, drainage works, relocation of existing utilities, dry and wet utilities, and other associated infrastructure. RCRC is investing in improving the road network in and around the kingdom's capital.

    Earlier in November, MEED reported that RCRC had begun post-tender clarifications with bidders for a contract covering upgrade works on Najm Al-Din Al-Ayoubi Road in Riyadh.

    The scope of work covers general road improvement works, including upgrades to three bridges at Al-Zahabi Road, Abdulrahman Adakhel Road and Atia Al-Saady Road.

    In February, RCRC announced plans to develop eight road projects in Riyadh at an estimated cost of more than SR8bn ($2bn).

    The projects form part of the second group in the Riyadh Ring Roads and Main Axes development programme.

    The schemes include:

    • The northern part of the Prince Turki Bin Abdulaziz Al-Awwal Road development project, with a length of more than 6 kilometres (km). The scope includes the development of two main intersections, the construction of three bridges and a tunnel.
    • The middle section of the Al-Thumama Road Axis development project. The scheme will cover about 10km and includes the development of five main intersections and the construction of 11 bridges and five tunnels.
    • The Imam Abdullah Bin Saud Road development project, which will stretch about 9km and includes the development of four main intersections, the construction of three bridges and two tunnels.
    • The Dirab Road development project, which will cover 9km and includes the development of two main intersections and the construction of nine bridges.
    • The Imam Muslim Road development project, which stretches 12km and includes the development of four main intersections and the construction of four bridges. The project will serve as the future extension of the Prince Turki Bin Abdulaziz Al-Awwal Road Axis to the south.
    • The road network development project surrounding King Abdullah Financial Centre, with a length of 20km. This includes the development of three main intersections and the construction of 19 bridges.
    • The construction of a bridge at the intersection of King Salman Road in the east with Abu Bakr Al-Siddiq Road in the north.
    • The first package of engineering modifications for crowded sites in Riyadh, encompassing improvements to alleviate traffic congestion during peak times.

    In August last year, RCRC confirmed it had awarded four contracts worth SR13bn ($3.46bn) as part of the first phase of the programme to develop the city’s road network.

    RCRC said the first phase will develop the axis of the main and ring roads to improve traffic movement in the city.

    Other major projects by RCRC include Riyadh Metro, Riyadh Art, Sports Boulevard, King Salman International Park and the Green Riyadh project.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15123861/main.jpg
    Yasir Iqbal
  • Riyadh advances with rail link prequalifications

    20 November 2025

     

    Saudi Arabia Railways (SAR) is expected to begin the second stage of the prequalification process for a contract covering the construction of a new railway line, known as the Riyadh Rail Link, which will run from the north to the south of Riyadh.

    MEED understands that the consortiums need to propose self-funded financing arrangements for the project as part of the new round of prequalifications.

    Contractors submitted their initial prequalification documents earlier this month.

    The scope of work includes constructing a 35-kilometre-long double-track railway line connecting SAR’s North-South Railway to the Eastern Railway network.

    The contract also covers the procurement, construction and installation of associated infrastructure such as viaducts, civil works, utility installations, signalling systems and other related works.

    The project is expected to form a key component of the Saudi Landbridge railway.

    The Saudi Landbridge is an estimated $7bn project comprising more than 1,500km of new track. Its core component is a 900km new railway between Riyadh and Jeddah, which will provide direct freight access to the capital from King Abdullah Port on the Red Sea.

    Other key sections include upgrades to the existing Riyadh-Dammam line and a link between King Abdullah Port and Yanbu.

    The start of tendering activity for the Riyadh Rail Link project makes the construction of the Saudi Landbridge more likely. 

    The project is one of the kingdom’s most anticipated infrastructure programmes. Plans to develop it were first announced in 2004, but the project was put on hold in 2010 before being revived a year later.

    Key stumbling blocks were rights-of-way issues, route alignment and its high cost.

    In December 2023, MEED reported that a team of US-based Hill International, Italy’s Italferr and Spain’s Sener had been awarded the contract to provide project management services for the programme.

    If it proceeds, the Landbridge will be one of the largest railway projects ever undertaken in the Middle East – and among the biggest globally.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15123411/main.jpg
    Yasir Iqbal
  • Local contractor bids low for $629m Kuwait oil project

    20 November 2025

    Kuwait-based Mechanical Engineering & Contracting Company (MECC) has submitted the lowest bid on a contract to develop oil and gas facilities at the Sabriya and Bahra oil fields.

    The scope of the project is focused on developing a water separation facility next to Gathering Centre 23 (GC-23) and GC-24.

    It also includes developing an injection facility at GC-31.

    The full list of bidders for the project is:

    • Mechanical Engineering & Contracting Company (MECC) – KD193m ($629m)
    • Spetco – KD229m
    • Alghanim International – KD239m

    The tender was issued on 15 December 2024, with an initial bid submission deadline of 16 March 2025.

    The bid deadline was extended more than 10 times before prices were submitted.

    The client on the project is state-owned upstream operator Kuwait Oil Company (KOC).

    The scope of the project includes:

    • Installation of a high-integrity pressure protection system
    • Installation of chemical injection systems
    • Installation of effluent water transfer pumps
    • Installation of a low-pressure (LP) gas pipeline from the new LP gas knockout drum (KOD) to existing LP separator gas crude accumulator (inside GC-23 & 24)
    • Installation of interconnecting piping, instrumentation, electrical and civil works
    • Installation of a new oil recovery system with pumps, flowmeter and analyser
    • Installation of the substation and its equipment/systems
    • Installation of tie-ins for process and utilities from/to existing GC-30 to new injection facility
    • Installation of sludge collection, treatment and disposal system
    • Associated facilities

    Kuwait is trying to boost project activity in its upstream sector.

    The country’s national oil company, Kuwait Petroleum Corporation, aims to increase oil production capacity to 4 million barrels a day (b/d) by 2035.

    In August, Kuwait announced that it was producing 3.2 million b/d.

    Earlier this month, KOC said it was planning to spend KD1.2bn ($3.92bn) on its exploration drilling programme through 2030.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15120909/main.png
    Wil Crisp
  • Oman’s Marafiq retenders Duqm desalination plant

    20 November 2025

    Register for MEED’s 14-day trial access 

    Oman-based Central Utilities Company (Marafiq) has reissued the main contract tender for its planned seawater reverse osmosis (RO) desalination plant in Duqm.

    The revised submission deadline is 25 November.

    The project has an estimated budget of $100m and will supply industrial water and support wastewater services in the Duqm Special Economic Zone.

    The scheme involves building a seawater RO plant, an intake system, pre-treatment facilities, pumping stations, metering stations, pipelines and associated infrastructure.

    Marafiq is developing the project in its capacity as the authorised utilities provider for the Duqm Special Economic Zone.

    The company intends to develop a plant with a capacity of 45 million litres a day to serve industrial customers, including a planned hot-briquetted iron (HBI) facility proposed by an international steel manufacturer at Duqm Port. 

    Spain’s Cobra Group and Oman’s Global Chemicals & Maintenance System were previously prequalified to bid for the engineering, procurement and construction contract.

    The main contract was initially tendered in December 2024, with the bid submission deadline in February. 

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15116821/main.jpg
    Mark Dowdall
  • Wood Group wins Iraq oil contract

    20 November 2025

    Register for MEED’s 14-day trial access 

    Aberdeen-based Wood Group has won a contract to deliver project management and engineering services for PetroChina at the West Qurna-1 oil field in southern Iraq, according to a statement from the company.

    Under the terms of the contract, Wood will manage engineering, procurement and construction (EPC) projects at the field. 

    Located approximately 50 kilometres northwest of Basra, West Qurna-1 holds more than 20 billion barrels of recoverable reserves.

    Ellis Renforth, Wood’s president of operations for the Europe, Africa and Middle East region, said: “This contract award deepens our decade-long partnership at West Qurna-1 and reflects the continued trust placed in Wood to deliver complex energy solutions in Iraq. 

    “We’re proud to combine our global expertise with a strong local workforce to help support Iraq’s energy ambitions.”

    The contract will be delivered by nearly 200 Wood employees based in Iraq and the UAE, the company said.

    On 17 November, in a vote, 88% of Wood Group’s shareholders backed the company’s takeover by Dubai-based Sidara.

    The vote came after months of delay, while Wood struggled to agree its accounts with its auditor.

    The company’s accounts were eventually published on 30 October, showing a pre-tax loss of more than £2bn and evidence that the auditor was still not satisfied with the figures going back several years.

    Wood Group accepted a $292m conditional takeover bid from Sidara in August.

    As of February, Wood Group employed 35,000 people across about 60 countries, many in consulting and engineering roles.

    In the Middle East, the company has project contracts in Iraq, Kuwait, Oman, Qatar, Saudi Arabia and the UAE, where it has opened its third office in Sharjah.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15122155/main.png
    Wil Crisp