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Nama Power and Water Procurement Company (Nama PWP), Oman’s sole offtaker for power and water projects, has signed an agreement with a consortium comprising Sembcorp Utilities (a subsidiary of Singapore-based Sembcorp) and local company OQ Alternative Energy (OQAE) to develop the 125-megawatt (MW) Dhofar II Wind Power Project.
The project, with an estimated value of at 43 million Omani riyals ($112 million), will be developed under a 20-year Power Purchase Agreement (PPA), according to a statement issued by Sembcorp.
The wind farm, which will cover approximately 12 million square metres (sqm), is scheduled to begin in the third quarter of 2027
Energy and Minerals Minister Salim bin Nasser Al Aufi said the project underscores Oman’s commitment to Vision 2040 and its goal of achieving net-zero emissions by 2050.
“The project will reduce carbon dioxide emissions by around 158,000 tonnes annually while supplying clean power to more than 18,000 homes,” he said.
Nama PWP CEO Ahmed bin Salim Al Abri said the wind farm will generate approximately 396,754 megawatt-hours (MWh) of electricity per year while freeing up 76 million cubic metres of natural gas annually.
Abdullah bin Rashid Al Sawafi, Chief Energy Transition Officer at Nama PWP, noted that the company has contracted 26 power and desalination plants worth more than $11 billion in investment over the past 15 years.
He added that Nama PWP plans to attract an additional $5 billion in renewable energy and storage projects over the next five years, aiming to add 9GW of renewable capacity by 2030 - equivalent to 60 percent of total contracted capacity - in line with Oman’s clean energy targets.
Vipul Tuli, President and CEO for Renewables (West) at Sembcorp Industries, said: “With over 1.1 gigawatts of energy assets in Oman, Sembcorp looks forward to working closely with Nama PWP and OQAE to deliver this project successfully and support Oman’s vision for a cleaner, more resilient energy system.”
Ghalib bin Saeed Al Maamari, Acting CEO of OQ Alternative Energy, said the project supports both environmental and economic objectives.
“Through this project, we are helping reduce carbon emissions, conserve valuable natural gas resources, and create opportunities for local businesses and talent in Oman’s renewable energy sector,” he said.
(Writing by Deva Palanisamy; Editing by Anoop Menon)
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