Ibri III Solar Project Achieves Financial Close: What This Means for Investment Opportunities in Oman’s Renewable Energy Sector
MUSCAT – Abu Dhabi Future Energy Company PJSC (Masdar), a global leader in clean energy, along with consortium partners Al Khadra Partners, Korea Midland Power Co. Ltd (KOMIPO), and OQ Alternative Energy (OQAE), have successfully secured financial close for the Ibri III Solar Independent Power Project. This marks the first utility-scale solar and battery storage initiative in the Sultanate of Oman.
Leading international financial institutions Natixis Corporate & Investment Banking (Natixis CIB) and First Abu Dhabi Bank (FAB) have provided financing facilities that cover a substantial portion of the total project cost, estimated at approximately $300 million.
Developed for Nama Power and Water Procurement (Nama), the Ibri III project supports Oman’s Vision 2040 objective of diversifying its energy resources and aims to contribute toward the national target of generating 30 percent of electricity from renewable sources by 2030. The project features a 500-megawatt (MW) photovoltaic (PV) solar plant coupled with a 100-megawatt-hour (MWh) battery energy storage system (BESS). Once operational, it will generate enough electricity to supply around 33,000 homes and reduce carbon dioxide emissions by approximately 505,000 tonnes annually.
Mohamed bin Jameel al Ramahi, CEO of Masdar, expressed gratitude to the lenders and partners for their support in reaching this important milestone. He emphasized Masdar’s commitment to assisting Oman in its energy transformation and highlighted the significant potential of battery energy storage to accelerate renewable energy deployment. Al Ramahi also noted Masdar’s intention to apply its expertise in BESS and other advanced technologies to ensure the delivery of clean and reliable power to Oman.
The power purchase agreement (PPA) for the Ibri III project was signed in September. The project encompasses the design, construction, ownership, financing, operation, and maintenance of the solar plant and storage system.
Special Analysis by Omanet | Navigate Oman’s Market
The financial close of the Ibri III Solar and Battery Storage Project signals a major leap towards Oman’s Vision 2040 renewable energy goals, presenting significant opportunities for businesses in infrastructure, clean tech, and energy storage sectors. Smart investors should consider focusing on emerging green technologies and long-term partnerships in Oman’s evolving clean energy landscape, while being mindful of the increasing importance of sustainability in regulatory and market frameworks.
