CPECC Secures Ibri III Solar and Battery Storage Contract: What It Means for Energy Investment in Oman
MUSCAT: China Power Engineering Consulting Group International Engineering Co (CPECC), a major Chinese state-owned firm specializing in energy-sector engineering, has been awarded the Engineering, Procurement, and Construction (EPC) contract for the Ibri III Solar Independent Power Project (IPP) in Oman’s Al Dhahirah Governorate.
In September, Oman’s Nama Power & Water Procurement Company (PWP), the sole purchaser of power and water in the Sultanate, selected a consortium led by the UAE-based Abu Dhabi Future Energy Company (Masdar) to develop and operate the Ibri III IPP under a long-term Power Purchase Agreement (PPA) with the government.
The total investment for the 500 MW project, which includes a pioneering 100 MWp battery energy storage system (BESS) — the first of its kind in Oman — is estimated at around RO 115 million (approximately $300 million).
Masdar announced on Wednesday that CPECC will handle the implementation of the Ibri III Solar IPP on an EPC basis. The consortium partners include OQ Alternative Energy, a subsidiary of the OQ Group holding a 25 percent equity stake, Korea Midland Power Co Ltd (KOMIPO), and Al Khadra Partners from Oman.
Covering an area of about 10 million square meters, the project aligns with Oman’s Vision 2040 goals and its target to achieve Net-Zero emissions by 2050. It is expected to reduce carbon dioxide emissions by approximately 505,000 tonnes annually and increase the renewable energy share in the country’s energy mix by four percentage points.
CPECC, a wholly owned subsidiary of China Energy Engineering Group Co., Ltd. (CEEC) that comprises several Chinese regional and provincial design institutes, has previously contributed to significant power projects in Oman, including the 588 MW Manah II Solar IPP and a 220 kV substation project in Sohar Industrial City.
Notably, the Ibri III Solar IPP represents Nama PWP’s first initiative to combine photovoltaic (PV) solar generation with battery storage under a single hybrid PPA in Oman. As the EPC contractor, CPECC and its affiliates will deliver a utility-scale, grid-connected lithium-ion Battery Energy Storage System. This system will be a containerized, modular solution integrating battery racks, power conversion systems, and battery and energy management systems, consistent with CEEC Energy Storage Technology’s established products for large-scale renewable integration. The turnkey solution will be designed to support the 500 MW solar facility and meet Oman’s transmission grid requirements.
Looking ahead, Nama PWP aims to attract up to $5 billion in foreign investments over the next five years by targeting the addition of up to 9 gigawatts (GW) of renewable energy capacity by 2030. This represents 60 percent of contracted capacity and supports Oman Vision 2040’s goal of generating 30 percent of energy from renewable sources.
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This landmark Ibri III Solar IPP project, integrating 500 MW of solar capacity with Oman’s first large-scale battery energy storage system, signals a critical shift toward renewable energy and grid modernization. For businesses, it opens new opportunities in the clean energy supply chain and allied technology sectors, while investors should note the government’s ambitious $5 billion foreign investment target tied to renewable expansion under Oman Vision 2040. Smart entrepreneurs must consider strategic partnerships and innovation in energy storage and hybrid power solutions to capitalize on this accelerating green transition.
