Tax advisory for power, water, and renewable energy businesses.
EWA supplies — standard-rated at 10%. Government subsidy component — outside VAT scope. Continuous supply for billing — tax point per billing period. Deposit payments — timing of VAT.
Solar panel installation — standard-rated supply of goods + services. Feed-in tariff payments — consideration for supply (standard-rated). Green hydrogen projects — growing sector in Bahrain.
Independent power producer agreements — BOT/BOO structures. Long-term capacity charges vs energy charges. PPA tax structuring for project finance. Al Dur and Hidd power plant services.
Bahrain is diversifying its energy mix under Vision 2030. Target: 5% renewable energy by 2025, 10% by 2035. The Sustainable Energy Unit (SEU) provides incentives for solar installations. Natural gas remains the primary fuel — Al Dur Phase 2 power and water plant is one of the largest IWPP projects in the GCC.
