Latest news with #IndependentPowerProjects
Observer
09-06-2025
- Business
- Observer
OQAE begins operational phase of clean energy project pipeline
MUSCAT: More than five years after its establishment as the clean energy investment arm of OQ Group, OQ Alternative Energy (OQAE) is set to formally commence the operational phase of its pivotal mandate. That phase will begin next year, when three mid-scale renewable energy projects—dubbed Riyah-1, Riyah-2 (both wind-based Independent Power Projects, or IPPs), and the North Oman Solar IPP—come online over the course of the year. Their launch marks OQAE's official entry into the operational phase of a portfolio that aims to deliver upwards of 7 GW of new renewable energy capacity through to 2030. The significance of this milestone in OQAE's evolution as the National Champion for Renewable Energy in Oman was emphasized in an exclusive interview highlighting how the Riyah-1, Riyah-2, and North Oman Solar projects align with OQAE's overarching mandate. That mandate rests on two main pillars: The first is the development of renewable energy and green hydrogen projects; the second is ensuring holistic development across the entire value chain and ecosystem, which includes project execution, competency development, supply chain investment, and strategic planning through to implementation. Integral to these objectives is the aim of attracting foreign direct investment (FDI) and advanced technology know-how into Oman. As announced last month, a joint venture comprising OQAE (51%) and TotalEnergies (49%) will develop the three projects at designated sites within the Block 6 concession of Petroleum Development Oman (PDO). The renewable electricity generated will be supplied to PDO under long-term Power Purchase Agreements (PPAs) at agreed tariffs. The OQAE–TotalEnergies JV will continue to own and operate the projects for the duration of the PPAs. According to the officials, partnering with a renowned integrated energy company like TotalEnergies aligns with OQ Group's strategy of leveraging the extensive experience and capabilities of global industry leaders. 'Unlike our well-established peers such as OQ Exploration & Production and OQ Refineries & Petroleum Industries, OQAE is just commencing its operational journey,' one executive noted. 'As a first step, our partnership spans not only Riyah-1, Riyah-2, and North Oman Solar, but also the 300 MW solar PV project that will contribute to the decarbonisation of the Marsa LNG bunkering project under construction at Sohar Port.' Meanwhile, Huadong Engineering Corporation—a subsidiary of Chinese contracting giant PowerChina—has already begun work on the three PDO-linked renewable energy projects. An initial batch of eight wind turbines is expected to arrive at the Port of Duqm for Riyah-1 in October. The supplier, Goldwind, a leading Chinese manufacturer, was awarded the contract to supply 36 turbines (18 for each site), each with a capacity of 117 MW, for the two wind farms. Solar PV panels for the North Oman Solar project will be supplied by Longi, a global leader in solar technology. More than 200,000 bifacial N-type panels, with a generation capacity of 128 MW DC, will be installed across a 3.5 km² site at Saih Nihayda in central Oman. The commercial operation dates are targeted for Q2 2026 for North Oman Solar and Q4 2026 for the wind farms. In addition to being the first clean energy projects to progress from concept to implementation, Riyah-1, Riyah-2, and North Oman Solar are also set to create a number of firsts for OQAE. They are the first to achieve Final Investment Decision (FID) and financial closure; the first wind projects to be financed locally by Omani banks—Bank Muscat and Ahli Bank; the first Wind IPPs in the world to exclusively power oil and gas projects; the first clean energy projects in which both the developers and end customers are from the oil and gas sector; and the first collaboration between oil and gas companies to advance the energy transition.
Observer
21-05-2025
- Business
- Observer
OETC plans 51 power transmission projects across Oman by 2029
MUSCAT, MAY 21 Oman Electricity Transmission Company (OETC), the majority state-owned operator and owner of the country's national grid, has unveiled plans for substantial investments in a broad portfolio of network expansion and modernization projects aimed at supporting Oman's ambitious clean energy and industrial growth strategies. As many as 51 key projects have been identified by OETC – part of Nama Group – for implementation over the next five years spanning the 2025-2029 timeframe. 'Most of the projects are designed to increase the transmission system capacity to meet the future growth in demand, connect new generations from renewable energy and conventional resources, connect new rural areas, and meet the Transmission Security Standard,' said Saleh bin Nasser Al Rumhi, Chief Executive Officer, in the latest Annual Transmission Capability Statement issued on Tuesday, May 20, 2025. Targeted for grid connection over the next five years is an array of solar PV Independent Power Projects (IPPs). They include the 500 MW Ibri Solar III project, which is expected to be connected to the grid by Q2 2026; the 280 MW Al Kamil Solar IPP and 220 MW Solar PV IPP 2028 project slated to be connected by Q3 2027, and a pair of Solar PV IPPs with proposed sites in the Al Sharqiyah North and South Governorates, each contributing 500MW. In parallel, a large slate of wind farms are planned to be integrated into the national grid as well. The list includes the JBB Ali wind farm, with a planned capacity of 100MW, and scheduled to be connected to the grid by Q2 2026. Additionally, the existing 50MW Dhofar I wind farm is set for expansion, with an additional 120 MW planned for grid connection by Q4 of 2026. Other significant wind projects include Ras Madrakah (250MW) and Mahout (350 MW), both planned for connection Q2 2027. By the Q2 2029, several additional wind farms are expected to be operational, including Mahout II (350MW), Al Jazer (100MW), Shaleem (100MW), and Sadah (90MW), further boosting Oman's renewable energy generation capacity. Also slated for grid connection is a pair of conventional gas-powered IPPs planned at Misfah (1600 MW) and Duqm (800 MW). The Misfah IPP, which is designed to secure power supply to the Muscat demand centre, will also necessitate major reinforcement initiatives in the Main Interconnected System (MIS), including five 400kV grid stations with associated lines. It will be connected to the grid by Q3 2027, followed by the Duqm IPP by Q2 2028. Meanwhile, Phase 2 of the strategic North-South Interconnector Project (Rabt) – focusing on a stretch extending from Duqm to Dhofar – is slated for completion by Q4 2026. Commenting on its overall significance, OETC's CEO stated: 'The interconnector (Phase 1&2) will add significant benefits for the Sultanate of Oman due to the expected fuel savings from the improved dispatch coordination among different power systems, access to areas with the potential of renewable energy, sharing of spinning reserves (reducing operating costs), reduction of dependency on diesel generation, generation capacity harmonization and improvement of grid resiliency. In addition, it will contribute to the evacuation of new renewable sources, future integration of large-scale potential hydrogen project integration and enhancing MIS and Dhofar systems resiliency,' he added.
Zawya
19-05-2025
- Business
- Zawya
Oman: 7 bidders qualified for $2bln Misfah and Duqm IPPs
Muscat: Nama Power and Water Procurement (PWP), the exclusive procurer of power and water in the Sultanate of Oman, has named seven qualified applicants to participate in a tender for the development of two major Independent Power Projects (IPPs) – Misfah IPP and Duqm IPP – which represent a significant step in securing the Sultanate of Oman's future energy needs. Total investment in the IPPs, with a combined generation capacity of 2400 MW, is estimated at RO 880 million. A total of 12 Statements of Qualification were received from international companies. Following a thorough evaluation process, 7 applicants have been successfully qualified to participate in the upcoming tender. They are: ACWA Power Company, Korea Western Power Co Ltd, Marubeni Corporation, Nebras Power, Sembcorp, Utilities Pte, Shenzhen Energy Group, and Sumitomo Corporation. These qualified bidders come from a variety of countries, notablyKSA, Kuwait, UAE, Qatar, India, South Korea, Japan, Qatar, Singapore and China. Ahmed bin Salim bin Mohammed al Abri, CEO of Nama Power and Water Procurement, stated:'The announcement of Misfah and Duqm Independent Power Projects marks a key milestone in advancing the Sultanate of Oman's energy infrastructure. These strategic projects will significantly enhance the reliability and security of electricity supply in Muscat and Al Wusta Governorates, supporting the growing demand for power and contributing to economic development in Sultanate of Oman. The strong interest from globally recognized developers reflects international confidence in Sultanate of Oman's energy sector and Nama PWP's transparent and competitive procurement framework. These projects also reaffirm our commitment to delivering sustainable and efficient power solutions,' Al Abri added. 2022 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (
Observer
18-05-2025
- Business
- Observer
7 bidders qualified for RO 880m Misfah and Duqm IPPs
Muscat: Nama Power and Water Procurement (PWP), the exclusive procurer of power and water in the Sultanate of Oman, has named seven qualified applicants to participate in a tender for the development of two major Independent Power Projects (IPPs) – Misfah IPP and Duqm IPP – which represent a significant step in securing the Sultanate of Oman's future energy needs. Total investment in the IPPs, with a combined generation capacity of 2400 MW, is estimated at RO 880 million. A total of 12 Statements of Qualification were received from international companies. Following a thorough evaluation process, 7 applicants have been successfully qualified to participate in the upcoming tender. They are: ACWA Power Company, Korea Western Power Co Ltd, Marubeni Corporation, Nebras Power, Sembcorp, Utilities Pte, Shenzhen Energy Group, and Sumitomo Corporation. These qualified bidders come from a variety of countries, notablyKSA, Kuwait, UAE, Qatar, India, South Korea, Japan, Qatar, Singapore and China. Ahmed bin Salim bin Mohammed al Abri, CEO of Nama Power and Water Procurement, stated:'The announcement of Misfah and Duqm Independent Power Projects marks a key milestone in advancing the Sultanate of Oman's energy infrastructure. These strategic projects will significantly enhance the reliability and security of electricity supply in Muscat and Al Wusta Governorates, supporting the growing demand for power and contributing to economic development in Sultanate of Oman. The strong interest from globally recognized developers reflects international confidence in Sultanate of Oman's energy sector and Nama PWP's transparent and competitive procurement framework. These projects also reaffirm our commitment to delivering sustainable and efficient power solutions,' Al Abri added.
Observer
13-05-2025
- Business
- Observer
Oman's OQAE plans green hydrogen pilot in Duqm
MUSCAT: OQ Alternative Energy (OQAE), a subsidiary of OQ Group, is developing a pilot-scale green hydrogen project designed to equip the company with practical experience essential to fulfilling its role as Oman's National Champion for Alternative Energy. The state-owned entity said the pilot, featuring an electrolyser capacity of 10 – 15 MW, is proposed to be established in the Special Economic Zone at Duqm (SEZAD). 'This initiative will provide hands-on experience in executing and operating green hydrogen projects, testing real-world applications, and generating insights for future large-scale hydrogen developments,' OQAE revealed in the newly published 2024 Sustainability Report of parent holding company OQ Group. The announcement comes as OQAE presses ahead with the delivery of a substantive pipeline of green hydrogen projects, renewable solar and wind energy schemes, and a plethora of other clean energy initiatives entailing several billions of dollars in investments over the coming years. On Monday, May 12, 2025, the company signed pacts to progress, finance and collaborate on an array of renewable and clean energy initiatives involving investments totalling around $2 billion. The list includes the 100 MW North Solar plant in Saih Nihaydah in northern Oman, and two 100 MW wind farms—Riyah-1 and Riyah-2—located in the Amin and West Nimr fields in the south; a 700 MW renewable energy project to power United Solar's polysilicon plant in Suhar, a 500 MW renewables scheme for Jindal; a 140MW renewable energy project with Oxy Zero in Block 9, and a 105 MW renewable energy project with Vale. They are part of a renewable energy pipeline of up to 7 GW across Oman. Furthermore, OQAE has secured a commitment from Nama Power and Water Procurement Company (Nama PWP), the sole procurer and offtaker of electricity generation and desalinated water capacity, to obtain up to a 25 per cent stake in future Independent Power Projects (IPPs). 'This has significantly expanded OQAE's customer base, which now includes oil and gas operators, industrial clients, and direct power demand through NPWP projects,' parent company OQ Group noted in its Sustainability Report. Importantly, OQAE is positioned to play a leading role in the delivery of Oman's long-term green hydrogen strategy. The company continues to work with key stakeholders in advancing three large-scale green hydrogen schemes, which will account for a significant share of the country's target to produce at least 1 million tonnes per annum of green hydrogen molecules by 2030. Key projects backed by OQAE thus far are: HYPORT Duqm, a joint venture with DEME & BP featuring 1.3 GW of renewable capacity in SEZAD; Green Energy Oman (GEO), a collaboration with InterContinental Energy, Enertech Holding Company, and Shell to supply approximately 4 GW of green power, with proposed downstream and export facilities in the SEZ at Duqm; and SalalaH2, a joint venture with Marubeni, Samsung C&T, and Dutco, bringing 3.8 GW of renewable energy capacity to Dhofar. 'Beyond production, OQAE is also diversifying market opportunities by exploring alternative vectors and downstream applications to drive demand. This includes positioning Oman as a global hub for low-carbon bunkering, piloting e-fuel projects such as e-Gasoline and e-SAF, leveraging biogenic CO2 for e-Methanol, and developing an e-NG facility utilising green hydrogen and CO2 through methanation,' the company added in the report.
