Electricity production and distribution in Bahrain is the responsibility of the Ministry of Electricity and Water. In 2003, Bahrain had an estimated electric generating capacity of 1.4 gigawatts (GW), and produced 7.3 billion kilowatt-hours (bkwh). Installed capacity is barely able to meet current consumption, with the countrys population growth and economic development leading to rapid power demand increases. Nevertheless, domestic power prices are expected to remain at the low level set by the government in 1992 in an attempt to help low-income groups. Like other Gulf states, Bahrain has made official appeals for voluntary conservation, but a widespread blackout in August 2004 underscored the need for additional capacity. At present, Bahrain gets its power from two combined water and power production complexes and three smaller electricity-only plants. The recent focus has been on the modern Hidd complex. Phase One, which was completed in 1999, added 280 megawatts (MW). Phase Two added another 600 MW when it was completed in 2004. In addition to the work being done at Hidd, the government awarded a contract in 2001 to Siemens Power Generation to extend the life of the Rifaa power plant.
In July 2004, Bahrain awarded its first contract for an independent power project (IPP) to the Belgian firm Tractebel. The first phase of the gas-fired Al-Ezzal Power Plant is scheduled to begin commercial operation in April 2006, with a capacity of 470 MW. The full capacity of 950 MW is to be completed by April 2007. Once the project is complete, roughly one-third of Bahrains generating capacity will be privately owned. In addition to trying to increase supply, the Bahraini government has continued its attempts to improve the nations transmission and distribution infrastructure. In November 2005, Bahrain awarded a contract for $343 million to the British firm Nexans for construction of a subsea interconnection between the Bahraini and Saudi electric grids. While movement is likely to be slow, Bahrain is considering the privatization of the countrys entire electricity sector.