Oman’s new wind power projects to target $1.2 bn in investments

20 March 2024

Five new wind farms will bolster Oman’s renewable capacity by around 1 GW.

MUSCAT: Plans for the near simultaneous development of five wind-based Independent Power Projects (IPPs) at key locations around the Sultanate of Oman, represent the biggest push by the Omani government to shore up the contribution of renewables to electricity generation in the country.

Total investment in the five wind farm projects, targeting an aggregate generation capacity of over 1 gigawatts (GW), is estimated at around RO 450 million (equivalent to about $1.2 billion).

Earlier this week, Nama Power and Water Procurement Company (PWP) – the sole procurer of power capacity – said it was gearing up to launch the procurement process covering the five Wind IPPs as part of an international competitive tender. All five projects are slated to be brought into operation over the course of 2027.

Significantly, the newly unveiled portfolio of Wind IPPs differs somewhat from previously announced strategies for wind-based capacity, either in terms of the proposed location of these projects or in their envisioned capacities.

Wind-swept Mahout in Al Wusta Governorate, for example, is set to host the biggest of the five IPPs with a generation capacity estimated at 342 – 400 MW and an investment cost of around RO 187 million. Notably, Mahout did not figure in previous lists of sites identified as possible locations for wind farms.

Likewise, Duqm – previously tipped to host a Wind IPP of 200 MW – will now feature a scaled up project of capacity ranging from 234 – 270 MW. On the other hand, Ras Madrakah – located not far from Duqm – and previously identified as a site for a 100 MW wind farm – does not figure in the current wave of Wind IPPs.

The capacities of Wind IPPs planned at Sadah (Dhofar Governorate) and Jaalan Bani Bu Ali (South Sharqiyah Governorate) remain roughly unchanged at 81 – 98 MW for Sadah and 91 – 105 for Jaalan.

Finally, Dhofar Wind II IPP, which will come up adjacent to Dhofar Wind I IPP – the nation’s first wind farm – is sized at 114 – 132 MW, which is modestly larger than the previously envisioned capacity of 100 MW.

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