Bahrain has taken a fresh step towards expanding its renewable energy sector after the Shura Council unanimously approved an amended draft law and referred it to the government to be formulated into a full bill.
It aims to establish a comprehensive legal framework to regulate and promote renewable energy, in line with Bahrain’s Economic Vision 2030 and global shifts towards clean and sustainable power sources.
The proposal was submitted by five Shura Council members led by services committee vice-chairman Talal Al Mannai.
The public utilities and environment affairs committee, in a supplementary report, said the amended proposal seeks to create an attractive investment climate for renewable energy projects, reduce electricity costs for households and businesses, ease pressure on the national power grid and lower spending by the Electricity and Water Authority (EWA).
Committee rapporteur Redha Monfaradi said the proposal reflects Bahrain’s growing focus on renewable energy as both an economic and environmental priority.
“The draft law aims to support Bahrain’s Economic Vision 2030 by creating an investment-friendly environment for renewable energy and keeping pace with the global transition towards clean energy,” Mr Monfaradi said.
“It will help reduce electricity consumption burdens on citizens and commercial users, relieve pressure on the national grid and contribute to savings in the electricity and water budget.”
He explained that the amended version was prepared after the proposal was referred back for further study following observations raised during an earlier Shura Council session. Those remarks, he said, led to targeted revisions designed to enhance legal clarity, constitutional compatibility and implementation flexibility.
One of the key amendments removes the designation of a specific authority to implement the law, instead allowing the competent body to be determined by decree. Mr Monfaradi said this approach avoids legislative conflict and accommodates ongoing reforms in the electricity and water sector.
Another addition confirms that general civil law provisions will apply to matters not explicitly regulated by the renewable energy law, particularly in areas related to liability and compensation for damages, ensuring legal certainty and consistency.
The proposal also includes an article exempting renewable energy systems, equipment and production inputs from customs duties, subject to conditions and controls set by ministerial decision. While the potential financial impact could not be precisely quantified, the committee said such incentives are widely used internationally to encourage investment in clean energy.
Mr Al Mannai said the initiative reflects a strategic shift towards sustainable energy solutions that benefit both the economy and consumers.
“This proposal is about preparing Bahrain for the future,” Mr Al Mannai said.
“Renewable energy is no longer optional. It is a necessity to ensure energy security, reduce long-term costs and attract high-quality investment that supports sustainable development.
“The move is expected to open the door to broader public and private sector participation in renewable energy projects, while strengthening Bahrain’s legislative foundation for a more sustainable and resilient power sector.”
During the debate, human rights committee chairman Dr Mohammed Al Khozaie welcomed the committee’s justifications but called for stronger emphasis on solar power as a primary source of renewable energy.
Following the debate, the Shura Council approved the proposal in principle and agreed to refer it to the Cabinet to be drafted into a formal bill.
&uuid=(email))