Energy Law at Bahrain
Bahrain's energy sector is governed by a comprehensive legal framework that encompasses oil and gas regulations, electricity and water utilities, and emerging renewable energy policies. Here's an overview of the key legislation and regulatory bodies shaping the Kingdom's energy landscape:
🛢️ Oil & Gas Sector
Royal Decree No. 78 of 2005: Established the National Oil and Gas Authority (NOGA), responsible for overseeing all oil and gas matters, including policy development and sector regulation.
Royal Decree No. 77 of 2007: Created nogaholding, the parent company for Bahrain’s oil and gas entities, tasked with managing the refinery, field development, and retail segments
Royal Decree No. 99 of 2021: Abolished NOGA, transferring its functions to the Ministry of Oil and Environment (MoOE), which continues to oversee the sector's operations
Royal Decree No. 49 of 2023: Renamed nogaholding to Bapco Energies, reflecting a strategic shift towards a diversified energy portfolio beyond hydrocarbons.
These decrees collectively ensure the regulation and development of Bahrain's oil and gas resources, facilitating both domestic energy security and international partnerships.
⚡ Electricity & Water Utilities
Royal Decree No. 1 of 1996: Established the Electricity and Water Authority (EWA), which regulates the transmission and distribution of electricity and water, as well as overseeing related tariffs.
Royal Decree No. 38 of 2024: Restructured the EWA, clarifying leadership roles and regulatory responsibilities to enhance efficiency and service delivery.
March 2024 Decree: Empowered the EWA to form public-private partnerships and hold stakes in private entities within the electricity and water sectors, aiming to boost private sector participation.
🌱 Renewable Energy & Sustainability
National Energy Efficiency Action Plan (NEEAP): Aims to improve energy efficiency across various sectors, including residential, commercial, and industrial, by setting higher energy performance standards and promoting technologies like district cooling.
Green Building Initiatives: Introduces regulations to reduce energy demand in buildings, encouraging sustainable construction practices.
Renewable Energy Targets: Bahrain has set a goal to produce 5% of its total power from renewable sources by 2025, with plans to increase this to 10% by 2035.
🤝 International Partnerships
Bahrain is actively seeking to diversify its energy sources through international collaborations. Notably, discussions are underway for a three-year liquefied natural gas (LNG) supply agreement with Russia, aiming to import 1.5 million metric tons of LNG annually. This move is part of Bahrain's strategy to address seasonal gas shortages and reduce dependency on traditional energy imports.
Bahrain's energy legal framework reflects a balanced approach, integrating traditional energy resource management with initiatives aimed at sustainability and diversification
RELATED Blog
0 comments