Dhofar II Project: What It Means for Energy Investment and Business Opportunities in Oman
MUSCAT: Oman has taken a significant step toward a sustainable energy future with the signing of the Power Purchase Agreement (PPA) for the Dhofar II Wind Power Project. This project is a key part of the Sultanate’s commitment to clean energy and aligns with the objectives of Oman Vision 2040.
Nama Power and Water Procurement Company (Nama PWP), the exclusive buyer of new capacity, has signed a 20-year PPA with Sembcorp and OQ Alternative Energy (OQAE) to develop the 125MW wind farm. The joint venture between Sembcorp and OQAE will build, own, and operate the facility, supplying power to Nama PWP upon completion, which is anticipated in the third quarter of 2027.
The signing ceremony featured Ahmed bin Salem al Abri, CEO of Nama PWP; Vipul Tuli, President & CEO of Renewables West at Sembcorp; Eng Ghalib bin Saeed al Maamari, Acting CEO of OQAE; and was witnessed by Eng Salim bin Nasser al Aufi, Minister of Energy and Minerals.
Located in the Wilayat of Shaleem and the Al Hallaniyat Islands in Dhofar Governorate, the project will cover approximately 12 million square meters with an investment of around RO 43 million. Once operational, it will generate enough clean electricity for over 18,000 Omani households and reduce carbon dioxide emissions by 158,000 tonnes annually.
Eng Salim bin Nasser al Aufi described the signing as a “key milestone in Oman’s renewable energy journey,” reaffirming that the initiative supports Oman Vision 2040 and the nation’s goal of achieving net-zero emissions by 2050. He emphasized that renewable energy investment is essential for a sustainable and prosperous future.
Ahmed bin Salem al Abri highlighted that the project will produce approximately 396,754 MWh of electricity annually and conserve about 76 million cubic meters of natural gas each year, marking another milestone in the diversification of Oman’s energy mix and ensuring the long-term sustainability of its electricity sector.
Vipul Tuli expressed pride in contributing to Oman’s clean energy ambitions, noting Sembcorp’s extensive experience across the region with solar and gas-fired projects. With over 1.1 GW of energy assets in Oman, Sembcorp aims to partner closely with Nama PWP and OQAE to deliver a cleaner, more resilient energy future.
Eng Abdullah bin Rashid al Sawafi, Chief Energy Transition Officer at Nama PWP, affirmed that the Dhofar II project is a strategic endeavor aligned with the company’s clean energy goals. He pointed out that the project will significantly reduce natural gas consumption and carbon emissions while integrating wind and solar renewable sources into the national grid.
Eng Salim al Hadhrami, Project Engineer at Nama PWP, provided technical details, stating the facility will feature 20 WD200 wind turbines from Windey Energy Technology Group and is set to commence commercial operations in Q3 2027. He underscored the project’s crucial role in supporting Oman Vision 2040 by delivering clean renewable energy to thousands of homes.
This landmark agreement reinforces Oman’s commitment to sustainable development and a clean energy future.
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Oman’s Dhofar II Wind Power Project marks a strategic leap towards energy diversification and sustainability, aligning directly with Oman Vision 2040 and the net-zero emissions target by 2050. For businesses, this creates opportunities in renewable energy sectors and related technologies, while also signaling a shift away from fossil fuel dependency that smart investors should monitor closely. Entrepreneurs and investors should consider leveraging the growing demand for clean energy infrastructure and innovations to capitalize on Oman’s expanding green economy.
