Bahrain issues first “Renewable Energy Certificate”

TDT | Manama

Bahrain issued its first “Renewable Energy Certificate” (REC) yesterday, a market-based policy instrument aimed at catalysing the development of renewable energy in the Kingdom. REC certificates are issued for every 1 MW hour of electricity generated from a renewable energy source. Investors who are unable to produce renewable energy themselves are allowed to purchase the certificate from its holder.

Issued by SEA through a fully electronic system, the first 5000 tradable certificates hold great promise in promoting the renewable energy market development in the Kingdom, said Sustainable Energy Authority (SEA) President, Dr Abdulhussein bin Ali Mirza.

The move is in line with the directives of the Government Executive Committee, chaired by His Royal Highness Prince Salman bin Hamad Al Khalifa, the Crown Prince, Deputy Supreme Commander and First Deputy Prime Minister. The launch, part of a pilot project to study the programme’s flexibility and application mechanisms at the national level, aims at registering all renewable energy systems in stages.

Blockchain solutions are employed to ensure transparency and authenticity of certificates issued. SEA issues a certificate when a producer record the productivity of their renewable energy systems on the electronic platform set up its management. “The system will provide an opportunity for investors and financing institutions to evaluate investment opportunities, finance sustainable energy projects and verify the energy output,” Dr Mirza said.