AUGUST 18, 2023

Oman to issue RFQs for solar, wind projects

Requests for Qualifications (RFQs) linked to a flurry of new renewable energy projects are set to go out before the end of this year as the Sultanate of Oman embarks on a new phase of procurement of solar and wind capacity to meet its electricity decarbonisation targets.

As many as four new wind-based Independent Power Projects (IPPs), as well as a mid-size solar PV-based IPP and a Waste-to-Energy scheme, have been identified for procurement via competitive tenders starting with the issuance of RFQs sometime during the current quarter, according to Nama Power & Water Procurement Co (PWP), the state-run monopoly procurer of all new capacity and offtaker of output.

First off is a Wind IPP planned in Duqm in Al Wusta Governorate with an installed capacity of around 200 – 300 MW. According to PWP, part of Nama Group, an RFQ for the project is proposed to be issued in Q3 2023, which will be followed by a Request for Proposals (RFP) in Q1 2024. The project is proposed to be brought into operation in Q3 2026.

A similar procurement timeframe is also envisaged for a new Wind IPP planned for implementation at Jalaan Bani Bu Ali in North Al Sharqiyah Governorate. An RFQ for the project, sized at around 100 MW, is expected to go out this quarter with the project’s Commercial Operation Date (COD) pencilled in for Q3 2026.

Up next is a new 500 MW solar PV scheme that is proposed to be built alongside Oman’s first grid-connected solar IPP at Ibri (known as Ibri II Solar) in Al Dhahirah Governorate.

“PWP plans to launch the RFQ process for the third of the series of solar IPP procurements in Q3 2023, to achieve commercial operation in 2026. This project (labelled Ibri III Solar) may also have installed capacity of 500 MW,” the power procurer stated in its newly published 7-Year Outlook Statement covering the 2023-2029 timeframe.

Significantly, the keenly-anticipated Waste-to-Energy project planned at Barka in South Al Batinah Governorate is being revived for procurement and development. An RFP for the estimated 130-140 MW capacity project, which will utilize municipal waste as feedstock, is planned to be issued this year. PWP says it expects to award the project in Q3 2024 and bring it into operation in Q2 2028.

Rounding off the list of Wind IPPs for procurement in this latest cycle is Dhofar II Wind IPP – a 100 – 200 MW project that is proposed to be built adjoining Oman’s first wind farm (Dhofar Wind IPP) at Harweel. The latter, a 50 MW project, came into operation in 2019. As with the aforementioned Wind IPPs, Dhofar II Wind IPP will be brought into commercial operation in 2026.

Furthermore, with an eye on its target to secure at least 30 per cent of electricity from renewable sources by 2030, PWP has outlined several more solar and wind schemes for implementation through to 2029.

“From 2025 to 2029, PWP plans to continue to procure new solar and/or wind IPPs on an annual basis. The renewable energy development plan includes three Solar PV projects, five wind projects. The future planned projects in addition to the above listed projects are MIS Solar IPP for COD in 2027, Ras Madrakah Wind IPP for COD in 2027, Sadah Wind IPP for COD in 2028, Solar PV IPPs 2029 for COD in 2029 and Wind IPP 2029 for COD in 2029,” the procurer added.

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