Masdar-Led Consortium Secures Contract for Oman's Landmark Ibri III Solar-Storage Project

Oman Awards Pioneering Renewable Energy Project

A consortium spearheaded by Masdar, a leading clean energy company, has been awarded the contract to develop the Ibri III Solar Independent Power Project (IPP) in Oman. This landmark initiative marks the Sultanate's first utility-scale project to integrate both solar power generation and battery energy storage. The agreement was signed with Nama Power and Water Procurement Company (Nama PWP), the sole national agency responsible for procuring new power capacity in Oman.

The project is a crucial step in Oman's energy transition, aligning with the nation's ambitious Vision 2040, which targets 30% of electricity from renewables by 2030 and aims for net-zero emissions by 2050.

Project Scope and Consortium Details

The Ibri III project will comprise a substantial 500-megawatt (MW) photovoltaic (PV) plant coupled with a 100-megawatt-hour (MWh) battery energy storage system (BESS). The Masdar-led consortium includes key partners: OQ Alternative Energy, Al Khadra Partners, and Korea Midland Power Co. Ltd (KOMIPO). Their responsibilities will encompass the full project lifecycle, including design, construction, ownership, financing, operation, and maintenance of the facility.

The project is situated in the Al Dhahirah Governorate, adjacent to the existing Ibri II solar project. The estimated investment for the Ibri III project is approximately OMR 115 million. Commercial operation is anticipated to commence in the first quarter of 2027.

Environmental and Economic Impact

Upon completion, the Ibri III Solar-Storage Project is projected to deliver clean electricity to approximately 33,000 homes annually. Furthermore, it is expected to significantly reduce carbon dioxide emissions by over 505,000 tonnes each year. This initiative will also contribute an additional 4% of renewable energy to Oman's total electricity generation mix.

Oman's Minister of Energy and Minerals, Eng. Salim bin Nasser Al Aufi, described the project as 'a milestone in the Sultanate of Oman's transition towards renewable energy,' emphasizing its role in energy diversification, enhanced security, and increased competitiveness. Ahmed bin Salim Al Abri, CEO of Nama PWP, highlighted the project as a 'practical model' for public-private sector collaboration and its contribution to in-country value through opportunities for local businesses and job creation.

Competitive Tender Process

The award followed a competitive tender process initiated by Nama PWP in January 2024. The company received twelve submissions from local and international developers, with nine applications qualifying. Ultimately, four consortia submitted detailed proposals for the project. The selection of the Masdar-led consortium underscores confidence in Oman's regulatory and business environment for renewable energy investments.