Acwa Power Bahrain assets deal marks a major change in who owns key water and power plants in Bahrain. The transaction shifts control from French utility Engie to Saudi-based Acwa Power and strengthens Acwa Power’s role in the Gulf utilities market.
Deal overview
Acwa Power has completed the purchase of Engie’s stakes in several large power and water desalination plants in Bahrain. The transaction is part of a wider agreement announced earlier in 2025 that covers assets in both Bahrain and Kuwait with a total deal value of about $693m before adjustments. The Bahrain part of the deal has now closed, while the Kuwait assets are expected to transfer once the remaining technical and regulatory conditions are met.
Assets in Bahrain
Under the deal, Acwa Power has acquired a 45 per cent stake in the Al Ezzel independent power plant. The plant uses combined-cycle gas turbines and supplies around 940MW of electricity to Bahrain’s grid. Acwa Power has also taken a 45 per cent stake in the Al Dur independent water and power plant. Al Dur provides about 1,220MW of power and produces roughly 218,000 cubic metres of desalinated water each day using seawater reverse osmosis technology.
The transaction further includes a 30 per cent stake in the Al Hidd independent water and power plant. Al Hidd delivers around 930MW of power and around 409,000 cubic metres of desalinated water per day through multi-stage flash technology. As part of the deal, Acwa Power has also bought 100 per cent of Al Ezzel O&M Company, which runs operations and maintenance for some of these assets, bringing those activities fully under Acwa Power’s control.
Strategy and growth
The Acwa Power Bahrain assets deal supports the company’s plan to grow as a leading private developer, owner and operator of power and water assets in the Middle East. The Bahrain plants, together with the Kuwait facilities that will follow, represent a combined capacity of about 4.6GW of gas-fired power and roughly 1.1 million cubic metres per day of desalination across the two countries. These assets operate under long-term offtake agreements, which means Acwa Power sells power and water under fixed contracts, providing steady cash flows.
Acwa Power has said that these acquisitions help it move towards its long-term goal of reaching about $250bn in assets under management by 2030. The company already has a large portfolio across the region, including renewable energy, and the new conventional assets give it a broader and more balanced mix of technologies and geographies.
Impact on Engie and Bahrain
For Engie, the sale fits with its strategy of rotating capital out of some thermal power and water assets in the Gulf. The company has been focusing more on renewables, energy efficiency and selected core markets. By exiting these Bahrain and Kuwait positions, Engie frees up capital while still keeping a presence in parts of the region through other projects.
For Bahrain, the deal brings in a specialised regional utility owner with deep experience in power and desalination. The government and off-takers keep the same plants and contracted capacity, but now deal with a new majority operator. This change in ownership is expected to keep power and water supply stable while linking Bahrain’s assets more closely to a wider Gulf portfolio managed by Acwa Power.
