High power demand in Bahrain and plans of the government to privatize the entire power industry is attracting investments into the industry.

Head of Bahrain’s Electricity and Water Authority, Fahmi Al Jowder, said that Bahrain’s rising power demand would help it to emerge as one of the important power markets of the world, reported gulfdaliynews.

In addition to claim by Al Jowder, it is believed that, Bahrain’s power requirements may attain a 7% annual growth rate by 2010 with rising consumer demand. At present, country’s installed power capacity is struggling to meet domestic requirements. However, at the consumption side, country’s population is on a rise and its economic development is leading to increase in power demand; thus, the industry needs more investment to cope up with the rising demand. In fact, the consumption of power in Bahrain is already several times higher than the world average due to billion-dollar developments taking place in the country.

In addition to power plants, Bahraini government is also planning to improve its power distribution infrastructure. For instance, the government has planned to invest $1 Billion till 2010 to increase both power generation and distribution. Apart from that, integrated electricity network project worth around billions of dollar - that is under process in GCC - will help the Bahrain power generating companies to sell their extra power to other states. Thus, Bahrain’s power sector is going to emerge as an important market both in the GCC states and globally in coming years.

Bahrain has opened a bidding contract process for its 1200 MW power and desalination plant for international companies. The country is also considering privatization of the entire power sector, which will further open the power sector for international players.

According to an analyst at RNCOS, “The Bahrain power sector is likely to grow impressively in coming years. High power demand and privatization of industry will make its power market an attractive destination for global players. But tightened credit conditions are raising the cost of power projects and delaying commercialization; however, they are unlikely to derail strategic projects.

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