Manama jumpstarts utility sector
4 November 2024
On 21 October, Bahrain’s Electricity & Water Authority (EWA) held a market-sounding event in Manama to gauge investor interest in its two upcoming utility public-private partnership (PPP) schemes, the Sitra independent water and power project (IWPP) and the Al-Hidd independent water project (IWP).
The event did not disappoint, attracting 60 representatives from regional and international utility developers and contracting firms such as France’s Engie, Japan’s Mitsui and Saudi Arabia’s Acwa Power, among others. The EWA is expected to launch the prequalification process for both projects imminently.
The Sitra IWPP replaces the previously planned Al-Dur 3, which was in the early planning phases following the completion in 2021 of Al-Dur 2.
The planned Sitra IWPP is a combined-cycle gas turbine (CCGT) plant, which is expected to have a production capacity of about 1,200MW of electricity. The project's seawater reverse osmosis (SWRO) desalination unit will have a production capacity of 30 million imperial gallons a day (MIGD) of potable water. It is expected to reach commercial operations in 2029.
The Al-Hidd IWP is Bahrain’s first independent, standalone SWRO plant. It is expected to have a production capacity of about 60MIGD of potable water and be completed in 2028.
The imminent launch of the two projects boosts Bahrain’s lean projects pipeline, which has experienced muted growth in the aftermath of the Covid-19 pandemic and the completion of the Al-Dur 2 IWPP, which delivered 1,500MW of gas-fired generation capacity and 227,000 cubic metres a day (cm/d) of desalination capacity.
MEED understands that both the Sitra and Al-Hidd plants are being procured to cater for a combination of demand growth and some replacement capacity with more efficient and sustainable technology.
Commenting on the Al-Hidd IWP, Robert Bryniak, CEO of Dubai-based Golden Sands Management (Marketing) Consulting, says that it will be interesting to see what the tariff comes in at for a desalination plant of its size, and how many bids are received.
“Traditionally, Bahrain has done combined power and water plants, but given the inroads reverse osmosis (RO) technology has made over the years, it does make sense to plan them as separate plants,” says Bryniak. “Capacity-wise, the Al-Hidd IWP can be considered a mid-size plant in the region these days, although at around 270,000 cm/d, this is a large RO plant for Bahrain.”
A different set of factors will be at play for the Sidra IWPP, however.
For one, it is likely to be the last IWPP for Bahrain, which aims to reach net-zero carbon emissions by 2060.
According to a source familiar with utility projects in the country, the EWA is planning for future capacity to be sourced from renewables despite Bahrain's space and land constraints, which have hampered the execution of at least one solar photovoltaic (PV) independent power project (IPP) in the past.
The source says that Bahrain could also consider other options to decarbonise its electricity systems, such as by developing offshore wind or importing clean energy – Bahrain, after all, has consistently secured electricity from the GCC grid – to supplement its available capacity and meet future demand.
Solar PV projects
The EWA awarded its first utility-scale solar PV IPP to a team comprising Acwa Power and Mitsui in 2019. However, the 100MW Askar solar PV was subsequently put on hold, with the utility issuing a new design-and-build tender for a similar-sized project in February this year.
China's TBEA Xinjiang Sunoasis Company is the sole bidder for the contract, offering to build the 90MW-100MW solar PV farm for BD27.6m ($73.4m).
In 2018, Bahrain's Electricity & Water Affairs Ministry awarded Deft Contractors a contract to build, own, operate and maintain grid-tied solar PV power panels with a minimum capacity of 72MW in Sakhir in the south of the country.
The power plant will be located at several premises, including at Bahrain International Circuit, the University of Bahrain, Bahrain International Exhibition & Convention Centre and Al-Dana Amphitheatre.
The solar panels are to be built on the rooftops, car park shades, electric vehicle (EV) charging stations and grounds of these organisations’ facilities, a measure that directly addresses the country’s space and land constraints.
The 20-year power-purchase agreement for the project was signed in August last year, at which time Electricity & Water Affairs Minister Yasser Bin Ebrahim Humaidan said that project is in line with Bahrain’s broader vision to adopt a circular carbon economy, with the aim of bringing carbon emissions to net zero by 2060.
Water and waste
Bahrain’s Works, Municipalities Affairs & Urban Planning Ministry is the other client for the island-state's power and water infrastructure-related projects.
It launched the prequalification process in 2022 for a project to develop an integrated waste PPP project, which is understood to include a waste-to energy (WTE) plant.
The WTE plant’s intended outputs are electricity, fed into the national grid through a power-purchase agreement; incinerator bottom ash and flue gas; and recyclable materials
However, no further developments on the project have been forthcoming since early 2023, when the ministry prequalified several consortiums to bid for the contract.
The construction of new power and water desalination plants in Bahrain will likely require the building of new power stations. Nine such schemes are in the planning stage, according to data from regional projects tracker MEED Projects.
As of November, bids are under evaluation for a contract to build two water distribution stations, one in Al-Hunayniyah and the other in South Saar. The bidders for the estimated $100m contract include the local Mohammed Abdulmohsin Al-Kharafi & Sons, Ahmed Mansoor Al-Aali and Panorama Contracting, as well as the UAE-based Tecton Engineering.
The scope covers the construction of two ground storage tanks, each with a capacity of 10 million gallons; two pump stations; and elevated storage reservoirs, in addition to the distributions stations.
Register for MEED's guest program now to access this article.
Exclusive from Meed
-
UAE monitors desalination plants after oil spill3 November 2026
-
Oman signs 1GW battery storage agreement3 November 2026
-
Consultants bid for Roshn’s north Riyadh scheme3 November 2026
-
Adnoc awards contract for Ruwais Diyab unconventional gas3 November 2026
-
Sultan Al-Jaber appeals for global energy security reset2 November 2026
All of this is only 1% of what MEED.com has to offer
Subscribe now and unlock all the 153,671 articles on MEED.com
- All the latest news, data, and market intelligence across MENA at your fingerprints
- First-hand updates and inside information on projects, clients and competitors that matter to you
- 20 years' archive of information, data, and news for you to access at your convenience
- Strategize to succeed and minimise risks with timely analysis of current and future market trends
Related Articles
-
UAE monitors desalination plants after oil spill
3 November 2026
State utility Etihad Water & Electricity (EtihadWE) says it is monitoring seawater quality at desalination plant intake points following an oil spill off the UAE's northern coast.
In a statement, the utility said it is continuing to "implement proactive measures to safeguard the water production system" following the spread of an oil slick towards coastal areas in the emirates of Umm Al-Quwain, Ras Al-Khaimah, Ajman and Sharjah.
The spill involved the tanker Gem No. 2, which was struck by a projectile in UAE territorial waters on 9 October. The resulting oil pollution has raised concerns over potential contamination of seawater used by desalination plants along the northern coast.
EtihadWE said its measures include continuous monitoring of seawater quality at plant intake points, regular testing of produced and distributed water, and verification of compliance with approved standards before water enters the distribution network.
The utility added that the precautionary measures will not affect the continuity of water supplies to consumers in the Northern Emirates.
In an earlier update on 30 October, the Climate Change & Environment Ministry said the oil slick was concentrated off the coast of Umm Al-Quwain, extending partially towards coastal areas in Ras Al-Khaimah, Ajman and Sharjah.
The ministry said the concentration of pollution had declined significantly and that the leak had been stopped at source. However, surveying, monitoring and clean-up operations are continuing in affected coastal areas.
The Energy & Infrastructure Ministry said specialised technical teams are continuing work to address technical issues with the tanker, including repairing damaged sections, restoring operational systems and assessing the integrity of its structure.
The proximity of the oil slick to the Naqa'a desalination plant in Umm Al-Quwain has drawn particular attention. According to media reports, the slick approached to within approximately 2 kilometres of the facility.
Naqa'a has a production capacity of 150 million imperial gallons a day, equivalent to approximately 682,000 cubic metres a day. The plant supplies water to the Northern Emirates and has been operational since 2022.
It is owned by Naqa'a Desalination Plant, a special-purpose vehicle established by Mubadala, Acwa and the former Federal Electricity & Water Authority, now known as EtihadWE.
https://image.digitalinsightresearch.in/uploads/NewsArticle/21104534/main3427.jpg -
Oman signs 1GW battery storage agreement
3 November 2026
Oman's Nama Holding, a subsidiary of Oman Investment Authority (OIA), has signed a framework agreement with China's State Grid International Development to develop battery energy storage systems (bess) with a targeted capacity of 1GW.
The agreement covers two battery storage systems, each with a capacity of 500MW, at Duqm Industrial Station and Al-Subaikhi (Ibri Solar 3) Station.
It is understood that both systems will operate at 400kV and connect to Oman's national electricity transmission grid.
The deal is part of a package of economic and investment agreements signed by OIA with Chinese institutions and companies during the Oman-China conference on 2 November. OIA put the combined value of the bess projects at approximately RO384.5m ($1bn).
The agreement comes as Oman advances plans to expand its renewable energy capacity and strengthen the electricity transmission network.
Nama Power & Water Procurement Company is also procuring a separate 950MW standalone bess programme comprising five facilities in the sultanate, as MEED exclusively reported.
The wider package of agreements, signed during Sultan Haitham Bin Tariq's state visit to China, covers sectors including renewable energy, mining, logistics, digital transformation and space technology.
In the wind energy sector, Oman's O-Green and Shanghai Electric Wind Power signed a strategic partnership to establish a joint research and development centre and wind turbine testing facility at the Mawarid turbine factory in Duqm.
The partnership will focus on adapting turbine technologies to Gulf climate conditions, supporting local manufacturing and developing green ammonia projects in Oman.
The partnership is valued at RO3.85m-RO7.69m ($10m-$20m). It also identifies potential future contracts exceeding $1bn, alongside green ammonia projects and initial investment commitments in Oman exceeding $200m.
In solar, OIA signed a preliminary term sheet with Chinese firms PCG Power and Hoymiles for a partnership valued at RO38.45m ($100m).
The partnership aims to develop solar energy projects in Oman and establish a solar inverter manufacturing facility serving markets in the Middle East and North Africa.
It is also intended to support the localisation of solar-related industries, expand domestic production and develop export markets.
https://image.digitalinsightresearch.in/uploads/NewsArticle/21102638/main.jpg -
Consultants bid for Roshn’s north Riyadh scheme
3 November 2026
Saudi gigaproject developer Roshn Group has received proposals from lead design consultants for its planned flagship development in north Riyadh.
Consultants submitted proposals on 1 November for detailed design, tender documentation and construction documents for the project’s first plot.
The planned development covers 13.7 square kilometres and will be a residential-led mixed-use scheme containing retail, office, hospitality, education and civic facilities.
The consultancy scope for plot one includes infrastructure, utilities, public-realm works and the site adaptation of Roshn’s residential prototypes. It has been divided into two work packages.
The first package covers phases A, B and E, which cover about 7.8 million square metres (sq m) and will include 17,000 units.
The second package covers phases C and D, covering about 4.7 million sq m and with more than 15,000 units.
The site is bordered by the Expo 2030 site, King Abdulaziz Park, the Sports Innovation Lab Zone and National Housing Company’s Khozam development.
Transport connectivity is a key element of the masterplan. Two metro stations are planned, including a station at the interchange between the existing Line 4 and planned Line 7, and a dedicated Line 7 station. The development could also be served by the planned Qiddiya high-speed rail link and a potential diversion of King Salman Road.
The scheme will add to Roshn’s existing development pipeline in Riyadh, which includes the multi-phase Sedra community. The developer is expanding its focus from single-family housing to larger mixed-use districts under its Roshn 3.0 strategy.
Last month, Roshn signed a preliminary agreement with TMG Saudi, the local subsidiary of Egypt’s Talaat Moustafa Group, to establish a joint venture to explore a separate mixed-use project in Riyadh.
TMG Saudi will hold a 51% stake in the proposed joint venture and Roshn will hold the remaining 49%. The companies said they will undertake detailed masterplanning and prepare a business case for the project, which preliminary studies indicate could include more than 55,000 residential units.
https://image.digitalinsightresearch.in/uploads/NewsArticle/21101503/main.jpg -
Adnoc awards contract for Ruwais Diyab unconventional gas
3 November 2026
Abu Dhabi National Oil Company (Adnoc) has taken the final investment decision (FID) for the Ruwais Diyab unconventional gas development in Abu Dhabi.
The project will deliver 345 million standard cubic feet a day (scf/d) of raw gas from 2029 over a 25-year period, with the potential to reach up to 1 billion scf/d in the future.
Gas will be processed on site and connected to the UAE’s gas network through new pipeline infrastructure, “strengthening domestic supply, supporting the nation’s economic and industrial growth as well as Adnoc’s liquefied natural gas export ambitions”, the Abu Dhabi energy giant said when announcing FID on the project at the Abu Dhabi International Petroleum Exhibition and Conference (Adipec) 2026.
According to sources, Adnoc has awarded the design, build and operate (DBO) contract for the Ruwais Diyab unconventional gas development to China-based Jereh Group.
A formal kick-off meeting between Adnoc and Jereh is expected to take place later in November, sources told MEED.
The DBO contract awarded by Adnoc to Jereh is understood to cover the second phase of the Ruwais Diyab unconventional gas development. The tendering exercise for the project started last year.
“The development [of Ruwais Diyab] follows a disciplined programme of technical studies, field testing and subsurface analysis, delivered by Adnoc Onshore under a DBO model, to reduce development risk,” Adnoc said in its statement on 2 November.
“It brings together advanced subsurface expertise, artificial intelligence-enabled drilling and completion technologies and integrated project delivery capabilities to support the efficient and responsible development of domestic gas resources,” it added.
The UAE holds the seventh-largest gas reserves in the world, with 298 trillion standard cubic feet (scf) of conventional gas reserves and 160 trillion scf of unconventional gas resources.
Adnoc holds the majority 60% stake in the Ruwais Diyab concession, the majority of which is situated onshore, while France’s TotalEnergies holds the other 40% interest.
The agreement to explore, appraise and develop the area’s unconventional gas resources was signed by Adnoc and TotalEnergies in November 2018. The partners announced first gas output at the concession, presumably on a pilot basis, two years later.
Adnoc has set a target of producing 1 billion scf/d of gas from the Ruwais Diyab concession by 2030, in line with its target to achieve self-sufficiency in overall gas production by the end of this decade.
“Ruwais Diyab’s additional unconventional gas supply will strengthen Adnoc’s gas value chain, including Adnoc Gas’s ability to meet rising domestic and international customer demand,” Adnoc said in its 2 November statement.
“Ruwais Diyab advances Adnoc’s ambition to establish a scalable unconventional gas business and create a platform for future growth,” the company added.
Ruwais Diyab first phase
Adnoc awarded the contract for engineering, procurement and construction (EPC) on the first phase of the unconventional gas development programme to local contractor Astra Engineering & Construction in early 2025, according to regional project tracker MEED Projects.
The first phase aims to achieve a gas output level of 100 million scf/d. The main structures to be built in the first phase include a central processing facility, two well pads, interconnecting well fluid pipelines, gas export pipelines and tie-in stations.
The EPC contractor will be required to provide services such as surveying, design, engineering, procurement, expediting, transportation, fabrication, construction, testing, installation, pre-commissioning, commissioning, site performance testing, operation and maintenance of all units.
The duration of the EPC works is understood to be 20 months, with the contractor also responsible for operating and maintaining the phase one facilities for 15 years.
https://image.digitalinsightresearch.in/uploads/NewsArticle/21100974/main4351.png -
Sultan Al-Jaber appeals for global energy security reset
2 November 2026
The global energy industry must fundamentally rethink how it builds, protects and delivers secure energy, following a year of unprecedented disruption that has exposed critical vulnerabilities in international supply chains, Sultan Ahmed Al-Jaber, the UAE’s Industry & Advanced Technology Minister and managing director and group CEO of Abu Dhabi National Oil Company (Adnoc Group) has said.
Delivering the opening address at the Abu Dhabi International Petroleum Exhibition and Conference (Adipec) 2026 on 2 November, Al-Jaber said preparedness is essential to navigating an increasingly uncertain global landscape.
“For decades, energy security was a question for specialists. It was debated in rooms like this, by people like us, in a language that few needed to learn. This year, every family, every farmer, every industry and every business owner is asking about it, and our collective job is to find the answers.”
Noting that it is not possible to control every situation and remove every risk, Al-Jaber said: “The choices we make today will determine the energy landscape a decade from now. Let’s apply the lessons we have learnt. Let’s build capacity and everything that supports it. Let’s forge partnerships that hold when it matters. And if you want a partner you can count on, you are in the right room, in the right city, in the right country. Because when it counts the most, you can count on the UAE.”
Setting out the case for a more resilient energy system, Al-Jaber said that since the disruption in the Strait of Hormuz, nearly 1 billion barrels of crude have been drained from inventories. He noted that in some markets, stocks of diesel are at their lowest seasonal level in 35 years, while others are facing a supply gap for liquefied natural gas (LNG) of 600 billion cubic feet. “Simply put, the world has eroded its supply buffers,” Al-Jaber said.
“But supply is only half the story. The other half is delivery. Before the disruption, logistics were less than 5% of the cost of a barrel. Today, they are more than 30%. In short, energy security is not only measured at the point of production. It is now also measured at the point of delivery.”
Mitigation steps
Al-Jaber outlined five steps the energy industry can take to reduce the impact of future shocks. “First, accessible supply. We need expanded strategic storage, larger stockpiles of products and flexible refining capacity closer to consumer markets.
“Second, routes to market. Supply only counts when it arrives. Infrastructure must be built before it is needed and enabled by advanced logistics.
“Third, operational intelligence. Moving from automated operations to intelligent energy systems that anticipate risk, optimise performance and drive down the cost of every barrel.
“Fourth, capital follows confidence. Policy must create it, finance must accelerate it and insurance must keep trade moving.
“Fifth, which is in my view the most important, is people. Because behind every barrel that arrives is a person who made sure it did. Systems don’t carry responsibility, people do.”
Photo credit: Adipec via LinkedIn
https://image.digitalinsightresearch.in/uploads/NewsArticle/21091189/main2954.jpeg