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First private power plant for Bahrain

by Tom Daly on Wednesday, 16 May 2007
The Al Ezzel plant will contribute 950 MW to Bahrain’s electricity grid.

Bahrain's Al Ezzel power plant, the first independent power station to be built under the government's privatisation programme, has been inaugurated by the Bahrain Crown Prince, His Highness Shaikh Salman Bin Hamad Al Khalifa.

The US $500 million combined-cycle power plant, located in the Hidd Industrial Area, will supply electricity to the Ministry of Electricity & Water under a 20-year power purchase agreement (PPA). The plant is fired by natural gas supplied by the Bahrain Petroleum Company (BAPCO) under a long-term natural gas sales agreement.

Since 30 April 2006, Al Ezzel has been supplying 470 MW of electricity to the Bahrain electricity grid, helping to ensure a reliable supply of power during the hot summer months. From now on, it will be contributing its full output of 950 MW, meaning the Al Ezzel Power Company (AEPC) will now account for 30% of the generation capacity available to the grid.

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AEPC is 45% owned by Brussels-based SUEZ Energy International, 45% by Gulf Investment Corporation, and the remainder by the Pension Fund Commission of the Kingdom of Bahrain.

Dirk Beeuwsaert, CEO of SUEZ Energy International, said the existence of long-term power purchase in the Middle East made it a key market for SUEZ. It has direct equity interest in 8200 MW of electricity and 1.8 million m³ of water per day in the region.

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