Manama: Kamal bin Ahmed Mohammed, President of the Electricity and Water Authority (EWA), has signed an agreement to extend the Power Purchase Agreement (PPA) with Al Ezzel Power Company. Al Ezzel Power Company, an independent power producer in Bahrain, has been operating the Al Ezzel Power Plant since 2004 with a production capacity of 950 megawatts.
According to Bahrain News Agency, the extension of the PPA is set for a duration of ten and a half years, commencing in May 2027 and concluding at the end of October 2037. This extension guarantees the uninterrupted operation of the plant beyond the expiration of the existing contract in April 2027.
The President of EWA highlighted the Authority's ongoing efforts to advance Bahrain's electrical infrastructure and enhance its operational efficiency to fulfill the demands of economic and urban development. This initiative is part of a broader strategy to ensure the sustainability of electricity and water services in the region. He stressed the significance of fostering partnerships with independent power producers to maintain a consistent energy supply and address the escalating demand for electricity.
The agreement extension aligns with EWA's strategic goals to bolster the national electricity network's efficiency. It facilitates the optimal utilization of existing generation capacity, which is expected to contribute to improved cost efficiency and a reliable power supply. The Al Ezzel plant, established through a public-private partnership under the Build-Own-Operate (BOO) model, utilizes a combined-cycle system. This system enhances natural gas efficiency and reduces carbon emissions, aligning with Bahrain's sustainability objectives and its pledge to achieve net-zero emissions by 2060.
The EWA President also indicated that the extended agreement fortifies the readiness of Bahrain's electricity infrastructure and improves the authority's capacity to meet the increasing electricity demand fueled by economic and urban growth. This reflects ongoing advancements in efficient resource management and long-term sustainability.