The power sector in the Kingdom of Bahrain is growing rapidly with demand increasing at an annual rate of over 10 percent. While adding new power generation capacity costs both time and money, the fossil-fuel dominated power sector contributes to both global and local emissions. It is estimated by Bahrain's Electricity and Water Authority (EWA) that generation capacity is around 3,167 megawatt (MW), against a peak demand of over 2,700 MW. The peak load continues to grow, and the power system's reserve margin is small. Out of the total consumption of about 12,000 gigawatt hours (GWh) per year on the EWA grid, nearly 50 percent of consumption is in the residential sector, followed by the commercial sector (38 percent). As observed in other warmer parts of the world, air-conditioning and lighting contributes the most to peak loads in Bahrain.