Oman is stepping up its efforts to transition to renewable energy, with several significant projects underway to bolster its power supply through solar energy initiatives. One of the most noteworthy projects is the 500 MW Ibri III solar project, which is expected to make headlines as companies submit their bids.
According to Nama Power and Water Procurement Company (PWP), which acts as the single buyer for all independent power projects in the sultanate, four consortiums have put their hats in the ring for the development of the Ibri III solar project. This includes collaboration between Abu Dhabi Future Energy Company (Masdar), Korea Midland Power (KOMIPO), and Al Khadra Partners, alongside other consortiums such as ACWA Power partnering with TotalEnergies Renewables, and EDF Renewables with Korean Western Power (KOWEPO). Lastly, Sembcorp Utilities also submitted their proposal.
The bidding process kicked off back in January 2024 and garnered attention from global and local developers, with twelve submissions received. Out of these, nine made the cut to proceed with proposals. The estimated cost for this expansive solar project stands at OMR 155 million (around $402.6 million), and completion is anticipated by the first quarter of 2027. This new venture will be located adjacent to the already operational 500 MW Ibri II solar project, which was inaugurated just last year after a swift 13-month construction period.
This flurry of activity forms part of Oman’s ambitious vision to expand its renewable energy capacity. By the end of 2023, Oman had reportedly installed about 672 MW of solar capacity, as per data from the International Renewable Energy Agency (IRENA). Notably, a significant achievement was marked last year when Sembcorp Utilities commenced commercial operations at a 588 MW solar plant situated in northeastern Oman, completing construction more than four months earlier than planned and cementing the country's commitment to renewable energy.
The Omani government's forward-thinking energy strategies include aims to add approximately 4 GW of renewable capacity by the year 2030. Such ambitious targets are indicative of the state’s resolve to diversify its energy mix and meet rising domestic and regional demand sustainably.
These developments are not just numbers on paper; they represent substantial investments and the potential for job creation within the local economy. The drive toward substantial solar energy projects will stabilize and decrease reliance on non-renewable sources, promising numerous environmental and economic benefits for Oman.
Moving forward, the outcome of the Ibri III tender will be closely watched by industry stakeholders, especially as it plays a pivotal role in shaping Oman's energy future. Regardless of which consortium emerges victorious, the project is set to be transformative, signaling Oman’s determined shift toward sustainable and eco-friendly energy production.
Oman's energy sector is undoubtedly entering a new era, where solar energy is not just supplementary but central to the nation's energy equation. The renewed focus on renewable projects, such as those led by PWP, highlights the region's commitment to adapting to global energy demands and mitigating the impacts of climate change.