MUSCAT: A new solar PV based Independent Power Project (IPP), set to come up at Ibri in Al Dhahirah Governorate, is expected to be integrated with utility-scale battery storage in a first for Oman’s rapidly expanding renewable energy sector.
Battery storage allows solar power plants to store excess energy generated during the day for use at night or when demand is higher. Storage is key to balancing electricity supply and demand, while also supporting the grid.
According to a senior official of Nama Power and Water Procurement Company (PWP), the single procurer of power and water capacity in the Sultanate of Oman, the upcoming 500 MW Ibri III Solar IPP — currently in the early stages of procurement — will include a sizable battery storage option.
“The unique thing about the Ibri III PV project is that it will have two options: It will be a solar PV as a standalone and also come with an option of 100 MW of battery storage — the first renewable project that will have this option,” said Eng Said al Abri, General Manager — Planning and Project Development, PWP.
Speaking at the ‘Korea-Oman Renewable Energy Business Round-table and KSP (Knowledge Sharing Programme) meeting held here on Thursday, December 12, 2024, Eng Al Abri said a Request for Proposals (RfP) for the Ibri III Solar IPP was issued in July this year. An award is anticipated in Q1 2025, with all 500 MW of capacity scheduled to come online in Q 2027. Total investment in the project is estimated at $380 — 400 million.
In June, PWP named nine international bidders as having pre-qualified to compete for the contract to build, own and operate the Ibri III Solar IPP under a 20-year Power Purchase Agreement (PPA). KPMG is PWP’s Financial Advisor for the project, with CMS as Legal Advisor and ILF Consulting as Technical Advisor.
At the same forum on Thursday, Nama’s Eng Al Abri announced plans for the development of a swathe of new Solar IPPs with a capacity aggregating around 4,500 megawatts (MW) and entailing an estimated investment of $2.8 billion. Notable is ‘Solar PV IPPs 2030’ with a combined capacity of a 3 gigawatts (GW), and estimated to cost between $1 billion - $1.5 billion. Commercial operation is slated during Q1 2030. It will be preceded by Solar PV IPPs 2029 centring on a 1 GW capacity PV project, estimated to cost around $600 – 800 million and planned to come online in Q1 2029. Sinaw in Al Sharqiyah North Governorate is tipped to host a 250 – 300 MW solar PV project worth around $200 – 250 million in investment and slated to be operational in Q2 2028.
Taken together with parallel plans for the implementation of a raft of Wind IPPs and combined cycle gas turbine (CCGT) power projects, total investment in Oman’s power sector is set to balloon to well over $5 billion over the next six years through to 2030. These projects will help broadly achieve the nation’s goal of securing at least 30 per cent of electricity consumption from renewables.
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