Oman seeks financial advisory consultant for new 500 MW solar PV project

MUSCAT: Oman’s power sector authorities have invited international consultancy firms to bid for its contract to provide Financial and Commercial Advisory Services linked to the planned development of a new 500 MW capacity solar photovoltaic (PV) project at Ibri in the northwest of the country.

It comes a month after a similar tender by Oman Power and Water Procurement Company (OPWP) – the sole procurer of new power capacity and offtaker of electricity output – for the appointment of a Technical Advisory Services Consultant linked to the same project.

The proposed venture, dubbed the Ibri-III Solar Independent Power Project (IPP), will be similar in size to the existing Ibri-II Solar project, which was inaugurated in the Wilayat of Ibri (Al Dhahirah Governorate) earlier this year. The latter project, which is close to completing one year of full-fledged operations, was built with an investment of around RO 155 million by Shams Ad-Dhahira Generating Company (SDGC), representing a consortium of Saudi-based power developer ACWA Power (50 per cent), Gulf Investment Corporation (GIC) – a Kuwait-based investment firm equally owned by the six GCC states (40 per cent), and Kuwait-based Alternative Energy Projects Co (AEPC) – 10 per cent.

Scheduled for commercial launch in the fourth quarter of 2026, the new solar PV project will help further ramp up the contribution of renewables to Oman’s total power generation capacity. The country’s grid-connected renewable energy capacity is projected to grow to 3,350 MW by 2027, up from around 550 MW presently. Oman’s National Energy Strategy envisions a 20 per cent share from renewables in overall electricity generation capacity by 2030, rising to 39 per cent by 2040.

Set to further contribute to renewables growth is a mega solar PV based scheme planned for development in the Wilayat of Manah in Al Dakhiliyah Governorate. Three international developers are in contention for the project, which will be implemented as two separate projects each of 500 – 600 MW located side by side. Final submissions were received on October 3, 2022 after multiple extensions of the submission date. An award is expected in the first quarter of 2023.