Bahrain Signs Agreement to extend PPA for 950MW Al Ezzel Power Plant

Electricity and Water Authority (EWA), signed an agreement to extend the Power Purchase Agreement (PPA) with Al Ezzel Power Company, one of Bahrain’s independent power producers, which has operated the Al Ezzel Power Plant since 2004 with a production capacity of 950 megawatts.

The new extension runs for ten and a half years, from May 2027 until the end of October 2037, ensuring the continued operation of the plant following the expiry of the current contract in April 2027.

Kamal bin Ahmed Mohammed, President of EWA emphasised that the Authority continues to implement its strategic plans to upgrade Bahrain’s electrical system and enhance its operational efficiency to meet the needs of economic and urban development, while ensuring the sustainability of electricity and water services. He underscored the importance of strengthening partnerships with independent power producers to maintain supply continuity and meet the growing demand for energy.

He said that the extension aligns with EWA’s strategic objectives to enhance the efficiency of the national electricity network. The new agreement enables optimal use of existing generation capacity, contributing to improved cost efficiency and sustained power supply.

He also noted that the Al Ezzel plant was established through a public-private partnership under the Build-Own-Operate (BOO) model and operates using a combined-cycle system, which increases natural gas efficiency and reduces carbon emissions, supporting Bahrain’s sustainability goals and its commitment to achieving net-zero emissions by 2060.

The EWA President noted that the agreement extension strengthens the readiness of Bahrain’s electricity infrastructure and enhances the authority’s ability to meet rising electricity demand driven by economic and urban growth, reflecting continuous progress in efficient resource management and long-term sustainability.