Oman’s Manah Solar I & II power projects to attract RO 300m in investment

@conradprabhu –

The Omani government has reaffirmed its commitment to the procurement of a major solar PV based Independent Power Project planned in Al Dakhiliyah Governorate, albeit with a revised implementation timeframe to factor in impacts from the global economic slump and coronavirus pandemic.

The Manah Solar 1 & II power projects, offering an aggregate electricity generation capacity of 1,000 megawatts (MW), are now targeted for commercial launch by the fourth quarter of 2024, the Oman 2040 Vision Implementation Follow-up Unit announced in a post jointly with Oman Power and Water Procurement Company (OPWP). The latter — a member of Nama Group — is the sole procurer of new power and water capacity under the sector law.

“In line with the Sultanate’s direction towards using renewable energy to meet the increasing demand for electricity, the Manah 1 & 2 Solar IPP Project will have a production capacity of 1,000 MW for both plants, with an investment value of RO 300 million,” the Oman 2040 Vision Implementation Follow-up Unit stated on Thursday.

Besides contributing to savings of natural gas — currently the principal fuel source for power generation in the country — the Manah scheme will also bring about a reduction of greenhouse gas emissions, notably carbon dioxide, by an estimated 680,000 tonnes annually, the Unit further noted.

Earlier, as many as nine international consortiums had been prequalified to participate in OPWP’s competitive tender for the Manah Solar I and II schemes.

The list includes leading developers from the Middle East, Europe, China, and Far East along with their Omani joint ventures.

Technical submissions for the two schemes were received by OPWP earlier this year, while the deadline for submission of commercial proposals was May 25, 2021.

Based on earlier timelines for the procurement and delivery of the project — the largest greenfield solar renewable energy undertaking to date in the country — the two plants were due to be brought into operation in Q4 2022 and Q1 2023 respectively.

Those plans were thrown into disarray when the recession-hit economy led to an unprecedented decline in electricity demand, prompting a review of timelines for the delivery of a number of planned solar and wind based projects in the pipeline.

Oman’s National Energy Strategy has an ambitious target to derive 20 per cent of electricity from renewables by 2027, rising to at least 35 – 39 per cent by 2040.