Bahrain has received four bids for the construction of a 44 MW solar PV project in the Sakhir region, with proposals ranging from $36 million to $147 million. This venture will be developed on a build-own-operate-transfer (BOOT) basis, signifying a strategic approach to sustainable energy development in the Kingdom.
Bahrain solar project investment opportunities and proposed capacity
The Bahrain Economic Development Board (EDB) has pinpointed the Kingdom’s burgeoning solar PV sector as a prime opportunity for investment. With an ambitious target of 700 MW, this sector is poised to attract investments totaling up to $1.8 billion. The Sakhir PV project is a crucial milestone towards achieving this goal, playing a vital role in Bahrain’s expansive renewable energy agenda. For further insights into Bahrain’s solar initiatives, visit Bahrain Solar Panel Manufacturing | Market Insights Report.
According to Meed, a key business intelligence provider for the Middle East, the lowest bid for the project came from a joint venture between UAE-based Alfanar and Saudi Energy Efficiency Services Company (Tarshid), amounting to $36 million. Other substantial bids were submitted by Saudi Arabia’s Acwa Power at $93 million, China’s Power China at $130 million, and a consortium of China National Building Material Company (CNBM) with Haifa Group, which bid $147 million.
Bahrain solar project and the Kingdom’s commitment to renewable energy
This project is integral to Bahrain’s broader strategy to transition towards renewable energy and diminish its carbon footprint. With an increasing emphasis on sustainability, Bahrain is committed to diversifying its energy portfolio and enhancing energy security. The Sakhir PV project is anticipated to significantly contribute to these efforts, delivering clean, renewable energy to bolster Bahrain’s economic growth. For more on Bahrain’s renewable energy strides, see the Bahrain & German Embassy Launch Solar Project in Manama.
The Sakhir PV project, structured on a BOOT basis, enables private sector entities to finance, build, and manage the facility for a predetermined duration before transferring ownership back to the government. This model is gaining traction in the renewable energy landscape, allowing governments to tap into private sector expertise and resources.
Saudi Arabia’s growing solar power capacity and its relation to the Bahrain solar project
Saudi Arabia, a neighboring leader in solar energy development, has announced plans to construct the world’s largest renewable energy complex with a staggering capacity of 200 GW. Situated in the Kingdom’s western region, this ambitious project is expected to attract substantial investment from both domestic and international stakeholders.
The Saudi government has initiated several projects to bolster solar energy development, including a $50 billion fund dedicated to financing renewable energy endeavors. These initiatives aim to reduce the Kingdom’s oil dependence, generate employment, and diversify the economy. With a projected solar power capacity of 40 GW by 2030, Saudi Arabia is positioning itself as a global frontrunner in renewable energy.
Strategic partnerships shaping the Bahrain solar project and Middle East energy sector
The recent partnership between the Saudi Ministry of Energy and the King Abdullah City for Atomic and Renewable Energy (KACARE) signifies a pivotal development in the Middle East’s renewable energy scene. This collaboration has resulted in several agreements to advance the Kingdom’s renewable energy projects, with a spotlight on solar energy.
These agreements encompass the development of a 1.5 GW solar power plant in the Al-Aflaj region and a 1.6 GW solar power plant in the Al-Qaisumah region. Additionally, a memorandum of understanding has been signed with the Saudi Electricity Company to incorporate renewable energy into the national grid.
This collaboration underscores Saudi Arabia’s dedication to renewable energy and its strategic ambitions in this sector. The Kingdom’s efforts to attract international investors and collaborate with global firms highlight its aspiration to dominate the renewable energy market.