Oman launches competitive process for 5 new wind IPPs

19 March 2024
Oman launches competitive process for 5 new wind IPPs

In alignment with Oman Vision 2040 and Oman’s commitment to achieve Net Zero by 2050, Nama Power and Water Procurement (PWP), the exclusive procurer of power is set to announce the initiation of the Request for Qualification (RFQ) for five new Wind Independent Power Projects (Wind IPPs Projects). This marks a significant milestone in the pursuit of clean and efficient power generation within the region.

PWP has invited qualified and experienced entities to submit their statement of qualifications for the Wind IPPs Projects, thereby contributing to the realization of a greener and more resilient energy future. A summary of the projects is as follows: -

In the Main Interconnection System (MIS):

- Jalan Bani bu Ali Wind IPP: The project will be located at Jalaan Bani Bu Ali in South Sharqiyah Governorate for commercial operation in Q1 2027 with a capacity of 91-105 MW.

- Duqm Wind IPP: The project will be located at Ras Madrakah in Duqm for commercial operation in Q4 2027. The project capacity is expected to be in the range of 234-270 MW.

- Mahoot Wind I IPP: The project will be developed in Mahoot in Al Wusta Governorate for commercial operation in Q4 2027 with a capacity of 342-400 MW.

In the Dhofar Power System (DPS):

- Dhofar Wind II IPP: The project will be adjacent to the existing Dhofar Wind I IPP with a capacity of 114-132 MW to be operational in Q2 2027.

- Sadah Wind IPP: the project will be developed at a site located in Sadah with a capacity of 81-99 MW for commercial operation in Q4 2027.

Oman launches competitive process for 5 new wind IPPs

“The Sultanate of Oman has embarked on an ambitious journey of increasing the renewable energy capacity up to 3.84 GW by 2029. Stemming from Oman Vision 2040 strategic direction of new infrastructure projects geared towards green economy, green strategies, and renewable energy production,” said Ahmed bin Salim al Abri, Acting CEO at PWP. “The proposed renewable energy capacity will help the Sultanate of Oman increase the renewable energy proportion as part of the total energy mix to 30% and 39% by 2030 and 2040 respectively.”

These projects mark a significant step toward advancing PWP’s renewable energy contribution of 2.2 TWh annually starting from 2027 and serve as a testament to PWPs ongoing efforts to usher in a sustainable and resilient energy future for the communities it serves and to contribute to Oman’s Net Zero targets. (For queries and information, interested parties may email at: prj.wind2026@omanpwp.nama.om).

Commenting on the projects currently operational or under construction, Ahmed al Abri stated that the company is currently contracting with two operational projects: the first being Dhofar 1 Wind IPP with a production capacity of 50 megawatts, which commenced commercial operation in November 2019, while the second plant is Ibri II Solar IPP with a production capacity of 500 megawatts, and commercial operation began in August 2021.

The company also contracted last year, in 2023, for two solar IPPs: Manah I and Manah II, with a combined production capacity of 1000 megawatts, and it is expected that both stations will commence commercial operation in the first and second quarters of the coming year.

Eng Abdullah bin Rashid al Sawafi, the Chief Operating Officer, added: "These projects have economic returns represented in attracting foreign investments, which are expected to reach around four and a half billion US dollars over the next five years. Additionally, these projects contribute to reducing natural gas consumption and diverting it to other economic projects, with the planned reduction in gas consumption per unit of electricity from 199 in 2022 to 144 in 2027, in addition to the added local value of these projects at the local level."

Al Sawafi also stated that renewable energy projects have significant environmental returns in terms of reducing carbon emissions. It is expected that the renewable energy projects previously contracted or in the future until 2027 will contribute to reducing carbon emissions by 2.8 million tons annually. Furthermore, the company contributes to the Sultanate of Oman's commitment to a systematic transition towards achieving net zero emissions by 2050.

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