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Renewable energy

Oman Signs Agreement for 500MW Solar and Battery Storage Project

Strategic Insights

— 2 min read

The Oman Power and Water Procurement (PWP) has signed an agreement with a consortium led by Masdar to develop the country's first utility-scale solar and battery storage project, the Ibri III Solar Independent Power Project, with an investment of RO115mn. The project will combine a 500MW photovoltaic plant with a 100MWh battery energy storage system, covering an area of nearly 10 million square meters. The project is expected to reduce carbon dioxide emissions by about 505,000 tonnes annually and add around 4% of renewable energy to the total electricity generation mix.

Key Takeaways:

  • The Ibri III Solar Independent Power Project will be developed by a consortium led by Masdar, combining a 500MW photovoltaic plant with a 100MWh battery energy storage system, at an investment of RO115mn.
  • The project will cover an area of nearly 10 million square meters and reduce carbon dioxide emissions by about 505,000 tonnes annually.
  • The project is expected to add around 4% of renewable energy to the total electricity generation mix and power around 33,000 homes.
  • Oman's Power and Water Procurement (PWP) aims to attract US$5bn in foreign investment in the next five years, with renewable energy and storage projects representing the largest share.
  • By 2030, PWP plans to add up to 9GW of renewable capacity, representing about 60% of contracted capacities.
  • The project will support Oman's target of generating 30% of electricity from renewables by 2030 and its ambition to reach net zero by 2050.
  • The consortium partners, including Abu Dhabi Future Energy Company (Masdar), Al Khadra Partners, Korea Midland Power (KOMIPO), and OQ Alternative Energy (OQAE), welcomed the agreement to develop the project.
  • The signing ceremony was attended by H E Salim Nasser al Aufi, Minister of Energy and Minerals, who described the project as a milestone in Oman's transition towards renewable energy.
  • Ahmed Salim al Abri, CEO of PWP, emphasized the project's commitment to renewable energy and its role as a model of public-private cooperation.
  • Mohammed Jameel al Ramahi, CEO of Masdar, stated that the project will address Oman's current energy needs while creating jobs, driving socio-economic growth, and preparing for growing energy demands.
  • Abdullah Rashid al Sawafi, Chief Energy Transition Officer of PWP, highlighted the company's aim to attract US$5bn in foreign investment in the next five years, with renewable energy and storage projects representing the largest share.

Statistics:

  • Investment: RO115mn
  • Project Area: 10 million square meters
  • Carbon Dioxide Emissions Reduction: 505,000 tonnes annually
  • Renewable Energy Contribution: 4% of total electricity generation mix
  • Number of Homes Powered: 33,000
  • Project Capacity: 500MW photovoltaic plant and 100MWh battery energy storage system
  • Foreign Investment Target: US$5bn in the next five years
  • Renewable Capacity Addition: Up to 9GW by 2030, representing about 60% of contracted capacities
  • Target for Renewable Energy Contribution: 30% of electricity generation by 2030

Sources:

  • "Nama Power and Water Procurement signs agreement with consortium to develop Oman's first utility-scale solar and battery storage project." Muscat Daily, no date.
  • "Oman Plans Renewable Energy Projects Worth $5 Billion." Khaleej Times, no date.

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