As of June 2023, Bahrain’s installed solar power capacity is 57 MW.⁸

Bahrain’s National Renewable Energy Action Plan (NREAP) targets 200 MW of installed solar capacity by 2025 and 400 MW by 2035. These goals aim to achieve 5% and 20% of total electricity from renewables, respectively.⁹

Representing over 99% of Bahrain’s electricity generation,¹²  the levelized cost of electricity (LCOE) for natural gas in Bahrain is approximately $0.074 per kWh.¹⁰

The LCOE for solar PV is projected to be $0.049-$0.063/kWh in 2025 and $0.036-$0.055/kWh by 2035. This is significantly lower than the actual cost of electricity from conventional sources.¹¹

The average LCOE for offshore wind farms in Bahrain is estimated at $0.12/kWh in 2019.¹¹

As of 2022, natural gas constitutes 99.97% of Bahrain’s electricity generation. Solar energy contributes only 0.03% but is expected to increase significantly with new projects.¹²

The EWA provides uninterrupted electricity services, making electricity generally available 24 hours a day.¹³

While specific figures for residential installations are limited, the government has installed solar panels on 10 homes as part of a pilot project.³ Additionally, solar panels have been installed in several schools and malls.¹⁴

Installed Solar Farms

Currently, a limited number of solar farms are operational in Bahrain. Four notable installations include: Tatweer Petroleum,¹⁵  Bapco,¹⁶  Dragon City,⁶¹  Imerys Solar Plants.¹⁷

Projected Solar Farms

Several solar projects totaling 218 MW are currently under implementation, indicating significant growth in Bahrain’s solar energy capacity.¹⁸

Current Demand

The off-grid market in Bahrain is currently relatively small due to the widespread availability of the grid electricity. However, there are some areas without a power system, creating a need for off-grid solutions.¹⁹

While specific figures are limited, there is evidence of off-grid solar adoption in the commercial sector. For example, GAC Bahrain installed over 550 solar panels on its warehouse, indicating a trend towards solar adoption even in grid-connected areas.²⁰

Projected Demand

The off-grid solar market in Bahrain is expected to expand gradually. This expansion is driven by factors such as growing understanding of the benefits of solar energy and the adoption of net metering policies.

These policies enable people with solar panels to sell surplus electricity back to the power company. This can make solar power more appealing for homes and businesses. Furthermore, initiatives to install solar panels on rooftops will contribute to this growth.³

Current Demand

The on-grid market for solar panels in Bahrain is experiencing significant growth, driven by government initiatives and increasing awareness of the advantages of solar power. In August 2022, the Ministry of Electricity and Water Affairs launched an international tender inviting proposals for grid-connected solar PV projects with a minimum total capacity of 72 MW.¹¹

Projected Demand

Bahrain aims to have a total of 250 MW of grid-connected solar generation capacity by 2025.²¹

The average monthly salaries for solar workers in Bahrain vary:

• Solar Energy Installation Manager: $5,200 (range: $2,700-$8,000).²²
• Solar Photovoltaic Installer: $2,400 (range: $1,300-$3,600).²³
• Solar Engineer: $3,500 (range: $1,400-$4,400).²⁴

As of September 2024, the population of Bahrain is approximately 1.6 million.²⁵

Overhead costs for solar panel production in Bahrain can vary based on several factors, but here’s a general breakdown:

Rent:

• Factory workshop: Prices range from $3,700 per month for a 566 SQM workshop to $8,200 per month for workshops with cranes ranging from 1,222 SQM to 2,376 SQM.²⁷
• Warehouses and industrial workshops: Industrial warehouses for rent range in price from $3,700 for a 587 SQM unit. These warehouses are suitable for various industrial purposes, including commercial and factory registration.²⁶

Utilities:⁵

• Industrial electricity tariffs: $0.077 per kWh.
• Water tariffs: $1.99 per cubic meter.

Labor:

• Wages for manufacturing workers vary based on roles and experience but generally around $2,700 per month.²⁸

Mortgage Rate:

• Mortgage rates vary depending on the bank and loan terms but can range from 3% to 8%.²⁹

Bahrain’s energy infrastructure is currently heavily reliant on natural gas for electricity generation and other energy needs. However, the country is actively pursuing a transition towards a more sustainable energy future by incorporating renewable energy sources, particularly solar power.³⁰

Key Features of Bahrain’s Energy Infrastructure:

• Main Operator: The Electricity and Water Authority (EWA) is the primary operator of electricity in Bahrain, responsible for generation, transmission, and distribution.³¹ It serves around 430,000 electricity customers.³²
• Private Sector Contribution: The private sector plays a significant role in Bahrain’s energy infrastructure, contributing 79% of electricity production.¹³
• Access Rate: Bahrain has achieved a 100% electricity access rate, meaning all residents have access to electricity.³³
• Interconnection: Bahrain’s electricity grid is interconnected with the Gulf Cooperation Council (GCC) interconnection project, enabling electricity exchange with neighboring countries like Saudi Arabia, Kuwait, and the UAE.³⁴
• Grid Structure: Bahrain’s electricity transmission network operates primarily at 400 kV/220 kV and 66/11 kV levels. The grid includes high-voltage transmission lines and substations, facilitating the distribution of electricity across the kingdom.³⁵
• Voltage Standards: Bahrain utilizes different voltage levels, including 400/230V for low voltage, 1 kV AC to 35 kV for medium voltage, and primarily 400 kV for high voltage transmission. ³⁶

Bahrain has implemented several regulations to promote solar panel production and the adoption of renewable energy. Key policies and frameworks include:

• National Renewable Energy Action Plan (NREAP): Established in 2017, this plan outlines Bahrain’s commitment to achieving 5% renewable energy in its energy mix by 2025 and 10% by 2035. It focuses on solar, wind, and waste-to-energy resources. The NREAP encourages private sector involvement and proposes incentives like feed-in tariffs.³⁷
• National Energy Efficiency Action Plan (NEEAP): The NEEAP focuses on improving energy efficiency across various sectors, including buildings, transportation, and industry. It promotes energy-saving technologies and sustainable practices to contribute to Bahrain’s sustainability goals.³⁸
• Net Metering System: Managed by the EWA, this system allows solar system owners to sell excess electricity back to the grid. This encourages solar energy adoption for residential and commercial users.³⁹
• Proposals for Mandatory Solar Panels in New Buildings: Local councils have proposed making solar panels mandatory for all new buildings. This would require solar power integration in building designs for construction permits.⁴⁰
• Sustainable Energy Unit (SEU): The SEU is a crucial government agency promoting renewable energy and energy efficiency in Bahrain. It develops national strategies, provides technical support, and implements programs to encourage renewable energy adoption.⁴¹

Bahrain actively encourages solar panel production and renewable energy development through various initiatives, including:

• Net Metering System: Managed by the EWA, this system allows solar system owners to sell excess electricity back to the grid. This encourages solar energy adoption for residential and commercial users.³⁹
• Feed-in Tariffs: The government uses a tender-based system to set prices for renewable energy. This gives developers and large customers a guaranteed price for the clean electricity they sell for a long time.⁴²
• Government-Backed Financing Schemes: The government, through the EWA, supports renewable energy projects by offering financing programs through banks. This helps individuals and investors fund their projects. For example, the solar energy project at the Medical University of Bahrain received government support and now produces 65% of the university’s electricity needs.⁴³
• Tamkeen’s Solar Financing Scheme: This scheme provides funding of $13,300 to $1,330,000, with repayment periods up to 10 years, to businesses for purchasing and installing solar panels.⁴⁴
• Solar Panel Installation on Government Buildings: The Sustainable Energy Authority (SEA) oversees the installation of solar panels on government buildings, targeting a capacity of 50 MW.⁴⁵
• Public Schools Project: The government is installing solar energy systems on eight public schools’ rooftops to promote renewable energy and reduce energy costs in the education sector.⁴⁶
• Innovative Floating Solar Technologies: Bahrain is exploring floating solar technologies in its territorial waters to address land scarcity and expand renewable energy production.⁴⁵

Installed Projects

• Sakhir 72 MW Solar Park: This solar park, featuring a combination of ground-mounted and rooftop solar panels, is strategically located in the Sakhir desert to leverage the region’s abundant sunlight. Currently under development, it is being implemented under a Build-Own-Operate-Maintain (BOOM) model.⁴⁷
• APM Terminals Solar Project: APM has built an 11.4 MW solar plant at the Khalifa Bin Salman Port. This project uses 20,000 solar panels on 70,000 sq m of sheds area to generate electricity for the port’s operations. It’s part of their plan to become energy self-sufficient.⁴⁸
• Alba 6 MW Solar Farm: This project, featuring approximately 11,300 solar panels covering an area of 37,000 square meters, is expected to generate a significant amount of clean energy for Alba’s operations. This project showcases the industrial sector’s active role in adopting renewable energy solutions.⁴⁹

Projected Projects

• Al Dur Solar PV Power Project: A planned 100 MW solar PV project located in Al Dur, Southern Governorate. It is currently in the tendering phase, with several bids received. The project is estimated to be completed in 18 months from the award date.⁵⁰
• Askar 100 MW Solar Farm: A planned 100 MW solar farm project to be situated on the Askar landfill. This project will utilize a previously unusable land area for renewable energy generation.⁵¹

• Yellow Door Energy: A major provider of solar and sustainable energy solutions in the Middle East, specializing in solar power purchase agreements PPAs for commercial and industrial clients. A major provider of solar and sustainable energy solutions in the Middle East.⁵²
• Solar One: Established in 2017, Solar One is Bahrain’s first solar panel manufacturer, producing high-quality panels and offering comprehensive energy solutions.⁵³
• Almoayyed Solar Company: A division of Almoayyed International Group, has been providing comprehensive solar solutions since 1979. The company specializes in designing, financing, installing, and maintaining solar PV systems throughout Bahrain and the GCC.⁵⁴
• MicroCenter Solar Services: A rapidly growing solar company partnered with Jinko Solar, providing state-of-the-art solar technology and comprehensive services for solar installations.⁵⁵
• OAK Group Holdings: Established in 2011, OAK Group Holdings engages in various solar energy projects, focusing on innovative and sustainable solutions for Bahrain’s renewable energy goals.⁵⁶
• Solartecc: A Bahraini company established in 2019, manufacturing and installing solar PV modules using fully automated equipment from Italy.⁵⁷
• Tarsheed Energy: Founded in 2016, Tarsheed Energy offers energy efficiency and renewable energy solutions, including energy audits, consulting, and implementation of energy-saving measures.⁵⁸
• KP Smart Energy: Specializing in energy-saving technologies, KP Smart Energy focuses on efficient solar lighting solutions for outdoor applications.⁵⁹
• SUNERGY SOLAR: Established in 2015, SUNERGY SOLAR designs and installs customized solar PV systems for businesses, tailoring solutions to specific energy needs.⁶⁰