A consortium led by ACWA Power has inaugurated the 500 MW Ibri 2 solar independent power project in Oman in partnership with the Oman Power and Water Procurement Company (OPWP). Ibri 2 is located in Ad-Dhahirah Governorate and was built with a $417 million investment on a build-own-operate basis. ACWA Power is the project’s principal investor, with a 50 per cent share. Gulf Investment Corporation owns 40 per cent of the project, with Alternative Energy Projects owning the remaining 10 per cent.
Ibri 2 is linked to the main national grid of the country. Under a 15-year agreement, the consortium will deliver electricity to the national grid for the OPWP. In addition, the solar power facility will provide on-the-job training and job possibilities for local graduates. Contracts to develop mechanical installations as part of the project supply chain have been allocated to local companies such as Taj Middle East and Diaa Energy.
Earlier this month, ACWA Power and the Azerbaijani Ministry of Energy held a ground-breaking ceremony for a 240 MW wind power plant in Azerbaijan. The wind facility is expected to help Azerbaijan meet its goal to generate 30 per cent of its power through renewable energy sources. The project involves a $300 million investment and is said to be the first and largest foreign investment made in the country’s renewable energy segment.
REGlobal’s Views: Oman aims to source 30 per cent of electricity from renewable sources by 2030 and renewable independent power projects are expected to be a major contributor in this transition. Thus, with its high solar potential, Oman is an attractive destination for large players like ACWA Power.