An agreement has been signed to set up a five megawatt solar energy project in Bahrain, officials said on Sunday.
The Bahrain Economic Development Board (EDB) said Petra Solar, Bahrain Petroleum Company (BAPCO) and the National Oil & Gas Authority (NOGA) had inked the deal.
The scheme will provide solar energy and increased efficiency through the use of smart grid technology to a number of locations in the country, including the BAPCO township of Awali and the University of Bahrain, a statement said.
Bahrain EDB said it has been closely involved in the development of the project since initiating discussions with Petra Solar in the United States in 2010.
Kamal bin Ahmed, acting chief executive of the EDB, said: "Investment in this sort of technology is a key part of our plans to create high-quality jobs for Bahrainis through sustainable economic growth for the long term.
"Importantly, this investment will not only create jobs directly, but also create benefits for other companies by improving energy efficiency."
Dr Shihab Kuran, president and CEO of Petra Solar, added: "Solar power and a stable electric grid are critical elements to Bahrain developing economic and energy security.
"In Awali, we are deploying solar power plus we are building a wireless smart grid network, which are the building blocks for command and control of smart cities."
The project will use smart solar technology developed in the US by Petra Solar.
Featuring a high-tech research and development component inside Bahrain, the project marks the first step in plans to build a powerful ecosystem in Awali, based on Petra Solar's technology, the statement added.