3 Strategic Bidders Compete for Oman’s Thermal Power Projects: Key Opportunities for Investors and Business Growth
MUSCAT: Nama Power and Water Procurement Company (PWP), Oman’s sole national power and water capacity procurer, announced on Wednesday that three bids have been received for one of the country’s largest thermal power generation projects.
The competitive tender focuses on two combined cycle gas turbine (CCGT)-based Independent Power Projects (IPPs) planned for development at Al Misfah in Muscat Governorate and Duqm in Al Wusta Governorate. The larger project, Misfah IPP, will have a capacity of 1,600 MW, while Duqm IPP is designed for 800 MW.
The bidders for the single-tendered IPPs are:
1. ACWA Power, a Saudi-headquartered global developer of conventional and renewable power with a strong presence in Oman.
2. A consortium led by Korea Western Power Co. Ltd. (a state-owned Korean power developer and equity partner in Oman’s 500 MW Manah-1 solar project), alongside Nebras Power QPSC (Qatar), Etihad Water and Electricity Company PJSC (EtihadWE) wholly owned by the Emirates Investment Authority (UAE), and Bahwan Infrastructure Services (Oman).
3. A consortium headed by Shenzhen Energy Group, a Chinese majority state-owned integrated energy group, with Oman National Engineering & Investment Co. as a partner.
Nama PWP noted that all three groups possess extensive experience in financing, designing, constructing, and operating high-efficiency thermal power assets. Both IPPs will be developed under a Build, Own, and Operate (BOO) model, playing a crucial role in enhancing energy security, supporting industrial growth, and diversifying Oman’s energy mix.
Ahmed bin Salim Al Abri, CEO of Nama PWP, remarked, “The receipt of bids for the Misfah and Duqm power plants marks a significant milestone in strengthening Oman’s energy infrastructure to meet rising electricity demand. This project reflects PWP’s commitment to developing a sustainable and reliable energy sector while supporting industrial growth, leveraging regional and international expertise in operating high-efficiency thermal power plants capable of partial operation with green hydrogen. These projects will enhance grid flexibility and ensure a dependable energy supply aligned with Oman’s long-term energy strategy and economic goals.”
These thermal IPPs are the first in nearly a decade amid Oman’s significant shift towards renewable energy. They are vital for maintaining grid stability during the transition to Net Zero targets by addressing intermittency issues linked to solar and wind power. In addition, they will replace aging, less efficient power plants whose contracts are due to expire.
Both Misfah IPP and Duqm IPP are scheduled to be commercially operational by April 1, 2029, with early power production expected by April 1, 2028.
Alongside these gas-based projects, Nama PWP has revealed plans to procure a substantial portfolio of solar and wind IPPs aimed at increasing renewable energy’s share to approximately 40% of total generation capacity by 2030. This sector is expected to attract investments totaling around $5 billion over this period.
Special Analysis by Omanet | Navigate Oman’s Market
The competitive tender for Oman’s large-scale thermal power projects underscores a strategic balance between securing energy reliability and advancing renewable transition. For businesses, this signals opportunities in infrastructure, engineering, and energy sectors linked to high-efficiency thermal and green hydrogen-capable assets. Smart investors should consider the growing demand for stable, diversified energy solutions as Oman targets 40% renewables by 2030, framing a landscape ripe for innovation and long-term growth amid evolving energy policies.
