Agreements signed to kick-start work at Oman’s largest solar IPP

May 06, 2019

A consortium composed of ACWA Power, Gulf Investment Corporation (GIC), and Alternative Energy Projects Co (AEPCO) has executed the project agreements for the development of Ibri-2 independent power project (IPP) with the Oman Power and Water Procurement Company (OPWP).

The project, to be developed on build, own and operate basis, includes the development, financing, construction, and operation of the 500MW solar power plant.

OPWP awarded the project to the winning consortium following an international competitive tendering process that included 12 qualified bidders. The winning consortium submitted the best economic tariff for the electricity that will be sold to OPWP.

ACWA Power is the lead investor in the project with a 50 per cent stake, whereas GIC will have a 40 per cent stake and AEPC will control the remaining 10 per cent.

Ibri-2 IPP will be the first utility-scale solar power project in Oman and will utilise solar photo-voltaic technology to yield 500MW of power. The innovative design of the plant will ensure the highest efficiency, reliability and availability standards for any comparable plant in the world, according to a press statement released by ACWA Power.

At peak generation capacity, the plant output will be enough to supply an estimated 33,000 homes with electricity and will offset 340,000 tonnes of CO2 emissions a year.

Paddy Padmanathan, president and CEO of ACWA Power said, “We applaud the government of Oman for their ambitions related to renewable energy and diversifying country’s power mix as evidenced by the scope of this project and its future potential in supporting the economy. It is an honour to have been trusted with the delivery and operation of the Ibri-2 Solar IPP based on our reputation for winning world-record power projects with best tariffs as well as our expanding renewable portfolio. We look forward to collaborating with our partners and Omani stakeholders to successfully complete this project.”

Rajit Nanda, chief investment officer of ACWA Power said, “Our winning bid for Ibri-2 Solar IPP is a continuation of the progress ACWA Power is making in developing and securing our clean energy footprint in the region. Being awarded this project is a sign of intent which reaffirms our steadfast commitment to renewable energy and also to the Sultanate of Oman.”