Oman’s PDO launch tender for first renewable energy IPP

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Oman’s PDO launch tender for first renewable energy IPP

Petroleum Development Oman (PDO), the sole wholesale buyer of electricity and related water from licensed production facilities in Oman, has issued a Request for Expression for Interest for the Amin Solar PV IPP project. This is PDO's first renewable energy project being implemented as an independent power project (IPP) in the country. 

The solar photovoltaic independent power project will involve the development of a utility scale solar photovoltaic plant with a nominal capacity of 100 MW peak AC at Amin, which is located in the southern region of the Oman, approximately 210km north-west from Salalah. 

The project includes the design, construction, ownership, financing, operation and maintenance of an 100 MW independent solar power plant under a build, own, operate, transfer (BOOT) framework.

PDO will enter into a 23-year Power Purchase Agreement (PPA) in respect of the project commencing on the scheduled commercial operations date. Under the PPA, PDO will purchase all of the capacity and output from the project. 

It is envisaged that the project will be privately financed through a combination of sponsor and third party equity and non-/limited recourse debt under a similar structure to previous IPPs. It is intended that PDO will sign a direct agreement with the project’s lenders setting out financial commitments

PDO have stipulated that bidders must demonstrate the successful development (i.e. from project award to commercial operation), during the five (5) year period, of at least two large scale solar PV independent power projects with an aggregate capacity of 100 MWp and a track record of efficient operation and maintenance (either as principal or arranging outsourcing and subcontracting of this role), during the three (3) year, of at least two power projects each with an installed power plant capacity of at least 100 MWp of which one must have been implemented as a solar PV power project.

For more information on the RFEOI, see the Business Opportunity.

This follows Oman Power and Water Procurement Company (OPWP) initiating the development of the country's first MW-sized PV plant in May, with a request for proposals for legal advisors for the project. As reported on this platform, an RFQ for the financing, procurement, engineering, construction, operation and maintenance of the 500 MW plant was issued just before the new year.

Oman is working to achieve around 4 GW of renewable generation capacity by 2030. This power would cover at least 10% of national demand.

List of country news

Country news

  • January 03, 2018

    RFQ for first solar PV project in Oman

    Oman Power and Water Procurement Company (OPWP), a member of Nama Group, has released a Request For Qualifications for a 500 MW solar photovoltaic (PV) plant. This is the first large utility scale solar photovoltaic independent power project to be developed in Oman.

    Read more
  • June 05, 2017

    Oman to issue RfPs for solar, power and water projects

    Oman Power and Water Procurement (OPWP) has announced it has plans to launch a tender process to develop solar projects in the country.

    Read more
  • January 31, 2017

    Bidders announced for Oman IPP project

    Statement of Qualifications were received from 11 Applicants in response to the tender for the development of an additional new generation capacity of approximately 850-750MW to be located at Misfah, just over 30km from Muscat International Airport in the Sultanate of Oman.

    Read more
  • November 09, 2016

    Oman tenders Independent power project

    The Oman Power and Water Procurement Company SAOC (OPWP) has launched the Reques for Qualificaton (RFQ) for the development of an additional new generation capacity of approximately 850-750MW to be located at Misfah, just over 30km from Muscat International Airport in the Sultanate of Oman. Read more
  • May 23, 2016

    OPWP signs 3,219 MW IPP project

    Oman Power and Water Procurement Company SAOC (OPWP) has announced that a consortium led by Mitsui & Co., Ltd., ACWA Power, and Dhofar International Development and Investment Holding Co. SAOG (DIDIC) has been awarded the 3,219 MW Ibri Sohar-3 power generation project. Read more

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