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Oman Business News

Oman kicks off tendering for two new solar power projects

Eager to deliver on its commitment to securing a minimum 10 per cent contribution from renewable energy resources towards the Sultanate’s electricity requirements by 2025, Oman Power and Water Procurement Company (OPWP) has issued a Request for Qualifications (RfQ) linked to the development of two new solar-based Independent Power Projects (IPPs) with a combined capacity ranging from 1000-1,200 MW.

The RfQs are an invitation to international developers to register their interest in participating in a competitive tender for the development of a pair of utility-scale solar photovoltaic (PV) based power schemes in Manah Wilayat in the interior of the country.

Dubbed Manah Solar I IPP and Manah Solar II IPP, the projects will be sized at between 500 MW and 600 MW each, according to the state-run utility. Oman’s maiden solar PV project — a 500 MW capacity scheme — is currently under construction at Ibri Wilayat in the far west of the Sultanate, and is due to come into operation in 2021.

OPWP — part of Nama Group — plans to procure around 2,200 MW of renewables based capacity within the Main Interconnected System (MIS) covering the northern half of Oman by 2025.

A contract award for Manah Solar I IPP and Manah Solar II IPP will include the development, financing, design, engineering, construction, ownership, operation and maintenance of a solar PV power plant with a minimum AC capacity of 500 MW and maximum AC capacity of 600 MW at the electrical delivery point, according to OPWP.

“The Manah Solar I IPP is expected to be commissioned and the contracted capacity made available by November 1, 2022. The Manah Solar II IPP is expected to be commissioned and the contracted capacity made available by February 1, 2023,” it said, adding that both IPPs are expected to be located adjacent to each other at a site in Manah. “Bidders will be encouraged to develop the Projects on a sound technical basis using proven technology with high efficiency, flexibility of operation and an environmentally compliant configuration, as well as safe and reliable processes and operating procedures. Furthermore, the capacity and plant layout at the site will need to be optimised to fit within the constraints of the available site,” the power procurer further stated.

In addition to solar PV based renewables capacity, OPWP also plans to procure two wind based IPPs towards the end of 2020 with the goal of bringing them into commercial operation in 2023. Expected locations are Duqm and potential areas within the North Oman (MIS) grid as well. The combined capacity is estimated at 300 MW.

In Muscat Governorate, OPWP is firming up plans for the procurement of Oman’s first Waste-to-Energy plant. The proposed facility, to be located near Barka, will utilise municipal waste collected by be’ah from Muscat and South Batinah areas. The facility is expected to produce at least 100 MW under a Power Purchase Agreement (PPA) with OPWP.
  • Oman Power and Water Procurement Company
  • IPP
  • Solar Photovoltaic
  • Manah Wilayat
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