Arabian Grid
Deal Brief · June 2026

Bahrain Steel 110 MWp: What a Landmark C&I Solar Deal Teaches About the Gulf

Bahrain Steel's 110 MWp hybrid solar project — 85 MWp ground-mounted, 25 MWp rooftop — is the largest C&I solar installation in Bahrain. The deal structure: no subsidy, no green certificate, just pure grid parity economics at ~$0.045/kWh LCOE.

Deal StructurePPA

25-year PPA with long-term O&M

The project was developed by TotalEnergies and Noor Energy under a 25-year power purchase agreement with Bahrain Steel. The structure is fully merchant: no government subsidy, no feed-in tariff, no green certificate premium. The offtaker pays a fixed tariff that undercuts grid power on an LCOE basis.

  • LCOE at ~$0.045/kWh is below Bahrain's industrial retail tariff band.
  • Long-term O&M is bundled, de-risking performance for the offtaker.
  • No equity participation by Bahrain Steel; pure offtake contract.
ConfigurationHybrid

85 MWp ground-mount + 25 MWp rooftop: why the split matters

The hybrid design — 85 MWp ground-mounted on adjacent land and 25 MWp rooftop on existing plant structures — maximises land use efficiency and minimises grid connection costs. The rooftop component reduces transmission losses by generating at the point of consumption.

  • Ground mount uses single-axis tracking for higher yield.
  • Rooftop uses fixed-tilt on existing structural steel; no new land required.
  • Combined generation profile matches Bahrain Steel's 24/7 baseload demand curve.
SponsorsTotalEnergies / Noor Energy

Developer credentials and consortium structure

TotalEnergies brought project development, financing, and long-term O&M capability. Noor Energy, a regional solar developer, provided local permitting and stakeholder management. The consortium model is becoming standard for C&I solar in the GCC.

  • TotalEnergies provided balance-sheet backing and international financing relationships.
  • Noor Energy handled grid application, land lease, and local authority permits.
  • EPC execution was subcontracted to a tier-1 contractor with GCC track record.
TemplateGCC C&I

Why this deal is a template for industrial offtakers across the GCC

Bahrain Steel proves that heavy industry in the Gulf can run on unsubsidised solar at grid-parity pricing. The template applies to aluminium, cement, petrochemicals, and steel anywhere with retail tariffs above $0.04/kWh and sufficient land or roof availability.

  • Industrial offtakers with >50 MW load and >20-year horizon are ideal candidates.
  • Hybrid ground-rooftop designs reduce land constraints and accelerate permitting.
  • GCC summer insolation of 1,900–2,100 kWh/kWp/year supports sub-$0.05 LCOE.
Bottom LineActionable

What this means for EPCs and developers

The Bahrain Steel deal is a proof point, not an outlier. EPCs and developers should target GCC industrials with high, stable load profiles and land or roof assets. The sales pitch is simple: lower energy cost, fixed long-term price, no capex from the offtaker.

  • Build a Bahrain Steel case study into every C&I pitch deck.
  • Target steel, aluminium, and cement producers in UAE, KSA, and Oman next.
  • Offer hybrid design as standard; it differentiates against rooftop-only competitors.