Nama Power and Water Procurement (PWP) has signed an agreement for the development of the Sultanate of Oman's first utility-scale solar and battery storage project with a consortium led by Abu Dhabi Future Energy Company PJSC, also known as Masdar. The consortium also includes Al Khadra Partners, Korea Midland Power Co., Ltd. (KOMIPO), and OQ Alternative Energy (OQAE), Oman's national champion in renewable energy.

The power purchase agreement (PPA) for the Ibri III Solar Independent Power Project was signed at an event in Muscat on September 22, 2025, under the auspices of H.E. Eng. Salim bin Nasser Al Aufi, Minister of Energy and Minerals. The signing ceremony included Ahmed bin Salim Al Abri, CEO of PWP; Mohamed Jameel Al Ramahi, CEO of Masdar; Ghalib Al Maamari, Acting CEO of OQAE; Hind Suhail Salim Al Mukhaini Bahwan, Chairperson of Al Khadra Partners; and Lee Young-jo, CEO of KOMIPO.

Project Specifications and Investment

The Ibri III Solar Independent Power Project combines a 500-megawatt (MW) photovoltaic (PV) plant with a 100-megawatt-hour (MWh) battery energy storage system (BESS). The project covers an area of nearly 10 million square meters and requires an investment of around OMR 115 million. The project's scope encompasses design, construction, ownership, financing, operation, and maintenance of the plant and storage system.

Once operational, Ibri III will produce enough electricity to power around 33,000 homes. The project will reduce carbon dioxide emissions by approximately 505,000 tonnes annually and contribute up to an additional 4% of renewable energy to the total electricity generation mix.

Strategic Importance and National Goals

The project forms a key element in Oman's policy to diversify energy resources to meet growing electricity demand. Oman Vision 2040 includes the objective of generating 30 percent of electricity from renewables by 2030, and the nation aims to reach Net Zero by 2050. The project will contribute to Oman's target of generating 30% of electricity from renewables and Vision 2040 diversification goals.

H.E. Eng. Salim bin Nasser Al Aufi, Minister of Energy and Minerals, stated that the project embodies the commitment to achieving the objectives of Oman Vision 2040 and reaching Net Zero by 2050. He noted that the project reflects the confidence of partners and investors in Oman's business environment and delivers an inspiring message that the Sultanate of Oman is steadily advancing towards a sustainable future, built on energy diversification, enhanced energy security, strengthened economic competitiveness, and the consolidation of Oman's position as a regional hub for clean energy.

Consortium Partners and Their Roles

Masdar, a global clean energy leader, will lead the consortium developing the project. Mohamed Jameel Al Ramahi, CEO of Masdar, expressed pride in leading the consortium and emphasized that the project will support the Oman Vision 2040 objectives of diversifying the nation's economy and energy resources. He noted that the project will help address current energy needs while creating new jobs, driving socioeconomic growth, and preparing for growing future demands.

OQAE, as Oman's national champion for renewable energy, plays a significant role in the consortium. Acting CEO Ghalib Al Maamari stated that the signing marks the beginning of OQAE's committed involvement in all renewable energy projects to be procured for the national grid by Nama Power and Water Procurement Company, reinforcing OQAE's role in strengthening energy security and maximizing the economic impact of Oman's energy transition.

Al Khadra Partners' Chairperson, Sheikha Hind Bahwan, expressed delight in being part of the transformative solar and battery energy storage system project, noting that the consortium is united in vision and commitment to deliver the groundbreaking project that will reinforce Oman's leadership in the energy transition and create lasting environmental and economic value.

Korea Midland Power Co. Ltd's CEO Lee Young-jo described the company as deeply honored to participate in the landmark initiative, highlighting KOMIPO's proven expertise in both thermal and renewable power generation since 2001. He emphasized that the company will contribute advanced technical know-how and operational excellence, leveraging global development and operational capabilities across the United States, Europe, and Asia.

Economic Impact and Future Plans

Ahmed bin Salim Al Abri, CEO of PWP, emphasized the company's commitment to the transition towards renewable energy and highlighted the project as a practical model of Oman's vision to synergize efforts between public and private sectors. He noted that PWP attaches great importance to In-Country Value (ICV) and the development of small and medium enterprises through its ICV programme and the allocation of contracted works to local companies to ensure economic growth, create job opportunities, and reduce reliance on external imports.

Eng. Abdullah Rashid Al Sawafi, PWP's Chief Energy Transition Officer, described PWP as a national and regional pioneer in implementing public-private partnership (PPP) concepts. Over the past fifteen years, the company has successfully developed 26 power generation and water desalination plants, attracting foreign investments of over USD 11 billion. Over the next five years, the company aims to attract an additional USD 5 billion in foreign investment.

Renewable energy and storage technologies will account for the largest share of these future investments, as PWP plans to add renewable energy capacities of up to 9 gigawatts by 2030, representing around 60% of contracted capacities, to ensure the achievement of Oman Vision 2040's target of 30% generation of electricity from renewable sources.

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