MUSCAT: Nama Power and Water Procurement Company (PWP), the exclusive entity responsible for acquiring new power generation capacity, has unveiled plans for a significant expansion in solar energy. This initiative includes the development of multiple Solar Independent Power Projects (IPPs) with a total capacity of approximately 4,500 megawatts (MW) and an anticipated investment of $2.8 billion.
In conjunction with these solar projects, there are also plans to implement a series of Wind IPPs and gas-based thermal power facilities. Collectively, these investments in the power sector are projected to exceed $5 billion over the next six years, leading up to 2030. This effort is crucial for Oman to meet its target of sourcing at least 30 percent of its total electricity consumption from renewable sources.
This announcement was made during the Korea-Oman Renewable Energy Roundtable on Thursday, December 12, 2024, hosted by Eng Salim bin Nasser al Aufi, Minister of Energy and Minerals. The event was attended by Kiejoo Kim, the Ambassador of the Republic of Korea to Oman, along with senior officials from the Korea Trade Investment Promotion Agency (KOTRA) and various Korean energy companies.
Eng Said al Abri, Acting Director for Project Development at Nama PWP, indicated that up to four new Solar IPPs are planned for development within the next six years.
The most significant project, referred to as ‘Solar PV IPPs 2030’, aims to achieve a remarkable combined capacity of 3 gigawatts (GW). A Request for Proposals (RfP) for this major initiative, with an estimated cost ranging from $1 billion to $1.5 billion, is anticipated to be released in the first quarter of 2027, with commercial operations expected to commence in the first quarter of 2030.
This significant initiative will be preceded by the 'Solar PV IPPs 2029', which focuses on the establishment of a 1 GW capacity photovoltaic project. With an estimated cost of approximately $600 to $800 million, this project is expected to commence operations in the first quarter of 2029.
Although the specific sites for the 2029 and 2030 Solar IPPs have not yet been determined, Sinaw in the North Al Sharqiyah Governorate is being considered for a solar PV project with a capacity of 250 to 300 MW, requiring an investment of about $200 to $250 million. A request for proposals (RfP) for this procurement process is anticipated to be released in the first quarter of 2025, with the project expected to be operational by the second quarter of 2028.
In a recent development, PWP has initiated a competitive tender for a 280 MW Solar IPP in Al Kamil, located in the South Al Sharqiyah Governorate. This solar PV project, estimated to cost between $200 and $250 million, is projected to be operational by the first quarter of 2028.
The Ibri III Solar PV project, which is currently in the procurement phase, is not part of the latest portfolio of new Solar IPPs. This mid-sized project, valued at approximately $380 to $400 million, is expected to commence operations in the first quarter of 2027.
In addition to these Solar IPPs, there are plans to implement five Wind IPPs with a combined capacity of around 1 GW. These projects, to be located in Jaalan Bani Bu Ali, Duqm, Mahoot, Harweel, and Sadah, are scheduled to become operational in 2027, with total investments estimated to exceed $1.2 billion.
Furthermore, to enhance grid stability as new renewable energy capacity is gradually integrated, PWP is also planning to procure approximately 2.4 GW of power generation based on combined cycle gas turbines. Much of this capacity is expected to be commercially launched between 2028 and 2029, primarily in the Muscat Governorate.
