Private power saves Bahrain BD99 million

TDT | Manama

Email: mail@newsofbahrain.com

Th e privatisation of Bahrain’s power sector has begun to yield major benefits.

Latest figures show that the government’s move away from direct power generation has saved the Kingdom BD99 million in just two years.

This comes despite BD161 million being spent on subsidies in 2023 alone.

The average price per unit now stands at 21.7 fils per kilowatt-hour.

The data was released by the Electricity and Water Authority (EWA) in response to a parliamentary question by MP Mahmood Fardan.

The shift was not sudden — it began nearly 20 years ago.

Newer machinery, improved supply chains, and strategic placement of power plants have all played a crucial role in cutting costs, according to EWA.

Decommissioning older power stations in Sitra and Riffa also contributed by improving gas usage efficiency.

Smart meters that track consumption without manual readings, along with digital platforms for billing and account management, have further boosted operational efficiency.

The actual cost

While electricity is purchased at 21.7 fils per kilowatt-hour, an additional 7.5 fils is spent on distribution to end-users.

Thousands of substations connected via transmission lines are instrumental in keeping Bahrain powered around the clock.

More savings on the way EWA says it expects to save a further BD68 million this year, thanks to the commissioning of new fuel-efficient units at Al Dur 2.

subsidies

When asked for a breakdown of subsidies by month and customer category, EWA said it could not provide that level of detail. However, it confirmed that total subsidies in 2023 stood at BD161 million, as per audited financial records.

Ongoing efforts

Switching from thermal desalination to reverse osmosis, which requires significantly less electricity, is another step towards cost efficiency.

Additionally, the Authority is rolling out value-added services that generate revenue.

EWA also noted that operational costs vary depending on fuel prices, equipment age, maintenance requirements, and staffing. Its stated goal remains clear: to deliver a reliable supply while maintaining price stability.