Interview: Mark Thomas
In what ways will the formulation of the National Energy Strategy reposition Bahrain’s market?
MARK THOMAS: The National Energy Strategy is a government initiative that is being developed with shortand long-term approaches to the kingdom’s power supply. One of the primary goals is to diversify the energy supply, since Bahrain is dependent on domestic natural gas. As natural resources are finite, it is important to find replacements. The first element of the strategy is to look at alternative sources of energy that will ensure economic growth. The second element focuses on managing the demand for energy, mitigating waste and implementing regulations for future developments that utilise district cooling to increase efficiency. The third element of the strategy aims to transition towards more sustainable and lower-carbon sources of energy.
The primary objective is to ensure the long-term viability of the country’s energy supply, however, the details of the strategy are still being discussed. While oil and gas exploration, as well as development will remain a priority, there will be significant investment in renewable energy sources. As developments in this context become a reality, Bahrain seeks to boost efficiency in the use of energy across all sectors, thus contributing to a sustainable future for the kingdom.
How can the country’s appeal in terms of renewable energy investment be further enhanced?
THOMAS: There are discussions at the government level regarding regulations and legislation designed to attract investment in renewables. The business environment is conducive to investment, with no corporate tax, and the ability to repatriate profit and dividends freely. Although Bahrain has a favourable climate for solar power due to the number of sunny days per year, its geographic size limits the amount of renewable energy that can be generated from that specific source of power. Therefore, we need to consider regional cooperation with neighbouring countries to establish joint projects that can be connected to the kingdom and the wider GCC grid. Such initiatives are under consideration and are steadily advancing in the right direction.
Where do you identify gaps in Bahrain’s innovation ecosystem for energy and utilities, and how could these opportunities be addressed?
THOMAS: Bahrain has prominent companies involved in the sector, such as the Electricity and Water Authority (EWA), and the independent power producers that are integrated into the EWA grid, among others. Some of our partners are also leading international companies, providing technical expertise to the country.
The quality of education and curriculum universities in Bahrain offer is comparable to that of any other country in the world. There is an opportunity for collaboration between the public and private sectors to bring together existing talents and access to funding to promote innovation in the energy sector.
Looking ahead, Bapco Energies aims to enhance the ecosystem for innovation in the kingdom by bringing together academia, commercial research and development, government funding, private finance and venture capitalists, among other resources, to develop large-scale applications. Such an innovation ecosystem would boost Bahrain’s capabilities. We will be thoroughly exploring this opportunity through close collaboration with the relevant government agencies and external stakeholders.
Start-ups with innovative ideas and technologies that potentially aid in the energy transition could benefit from having the right environment and the chance to scale their projects. We can provide opportunities for immediate application and limited financing. Additionally, we are exploring the possibility of venture funding for small and medium-sized enterprises that need commercial support and business mentoring.
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