Acwa Power and Bapco to develop 2.8GW solar plant to supply electricity to Bahrain

Agreement includes large-scale battery energy storage in Saudi Arabia's Eastern Province

Solar panels at Saudi Arabia's King Abdulaziz City of Sciences and Technology. Reuters

Riyadh-based Acwa Power and Bahrain's state oil firm Bapco Energies have agreed to develop a solar power plant with large-scale battery energy storage in Saudi Arabia's Eastern Province that will supply electricity to Bahrain.

The solar plant will have generation capacity of up to 2.8 gigawatts, developed over several phases, the companies said in a joint statement on Tuesday.

Electricity generated by the plant will be transmitted to the load centre of Bapco Energies in Bahrain, accelerating the country's transition to renewable energy sources.

The companies said the project will reinforce Saudi Arabia's “leadership in the energy sector by becoming an energy export hub, and by supporting other countries in achieving their emissions-reduction targets”.

The agreement between Acwa Power and Bapco Energies was announced during the Saudi–Bahraini Co-ordination Council meeting. Photo: Acwa Power

Bahrain, the Gulf’s smallest oil producer, aims to reduce carbon emissions by 30 per cent by 2035 and reach net zero by 2060.

Its National Renewable Energy Plan aims to increase the share of renewables in Bahrain's energy mix to 20 per cent by 2035.

In August, the Electricity and Water Authority announced the start of work on the country's first solar power plant, with capacity of up to 150 megawatts.

Bahrain's National Energy Strategy focuses on improving energy demand efficiency, diversifying the national energy mix, including renewables, and ensuring secure and competitive access to energy.

Acwa Power and Bapco Energies' joint development agreement underscores the co-operation in the sector between the two Gulf countries, Raad Al Saady, vice chairman and managing director of Acwa Power, said.

“The project aligns not only with [Saudi Arabia's] Vision 2030 but also with Bahrain’s Economic Vision 2030 and its national ambitions to expand clean energy and accelerate its net-zero pathway,” he said.

The agreement is an “important milestone” in Bapco's push for energy diversification and regional collaboration, Mark Thomas, group chief executive of Bapco Energies, said.

“By working alongside Acwa Power, Bapco Energies is taking a bold step to ensure long-term energy security for the kingdom of Bahrain while unlocking the power of renewables,” he said.

The agreement was announced during the Saudi–Bahraini Co-ordination Council meeting last week.