Bahrain Wind IPP (Wind, Renewables)
Bahrain is in the early stages of planning its first wind farm, with the project likely to be put out to tender as an Independent Power Project (“IPP”). The National Oil and Gas Authority (“NOGA”) has announced that Bahrain is to set up a wind energy plant to produce electricity. According to NOGA, a Japanese company that had concluded tests on wind velocity in Bahrain was due to submit the evaluation results during the course of 2010.
Askar Waste to Energy PPP (Social Infrastructure, Renewables)
The Ministry of Finance in Bahrain has selected France’s Constructions Industrielles de la Méditerranée (“CNIM”) to install (on a build-operate-transfer (“BOT”) basis) a waste-to-energy plant on the country’s east coast. CNIM will receive and treat municipal waste in Bahrain and generate power from the waste. CNIM plans to arrange debt finance for the US$480 million facility in a project finance structure and has approached banks as well as potential equity investors to finance the project. Financial close is expected to be reached by the second quarter of 2011, with the plant due to commence operation by 2013. CNIM’s BOT contract will run for a period of 25 years. The project will incinerate 390,000 tonnes a year of domestic waste from Manama. The plant will have a generating capacity of 25 MW, which will feed into the Bahrain electricity grid.
Bahrain Photovoltaic Power Plant
Tanmiyat Aloula Holdings is planning to construct a US$200m photovoltaic power plant. The plant will also include a research and training centre in co-operation with the Economic Development Board and Bahrain University.
Bahrain ratified the Kyoto Protocol in May 2006. However, the country remains heavily dependent on the oil sector. Petroleum revenues make up about two-thirds of government revenue and export earnings. Hydrocarbons also provide the foundation for Bahrain's two major industries: refining and an aluminium smelter. In addition, in Bahrain as with other countries across the GCC, electricity production is heavily subsidised and supplied at a price which is less than the cost of generation.
Policy and Regulatory Framework
As well as being a signatory to the Kyoto Protocol, Bahrain has signed the statute for the International Renewable Energy Agency (“IRENA”). IRENA is an intergovernmental organisation established to promote the use of energy from renewable sources on a global scale, and is headquartered in the Emirate of Abu Dhabi. Bahrain has also established a Designated National Authority (“DNO”) but to date has not registered any projects for consideration in the Clean Development Mechanism (the “CDM”).
However, despite these actions and policy statements acknowledging the need to encourage the production of energy from renewable sources, there is as yet no formal policy framework in place to support the development of renewable energy projects in the country.