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The Asian Infrastructure Investment Bank's (AIIB) board of directors has approved a US$60mn loan to increase Oman's renewable power generation capacity and reduce the country's dependence on gas and other fossil fuels for electricity generation.
AIIB, a Beijing-based multilateral development bank, will provide financing for a 500MW greenfield solar power plant project in Ibri, which is being developed by a special purpose vehicle established by ACWA Power, Gulf Investment Corporation and Alternative Energy Projects Co.
'This is AIIB's first non-sovereign-backed financing in the sultanate's renewable energy sector. It is Oman's first utility-scale renewable energy project to be connected to the grid. The total project cost is approximately US$400mn,' AIIB said in a press statement on its website.
Oman has one of the highest solar densities in the world, providing a great development potential for solar energy resources. Currently, almost all the installed electricity capacity in Oman is fueled by natural gas, leaving huge potential for renewable energy.
'AIIB's investment will increase the availability of Oman's renewable power generation capacity and contribute to filling the anticipated gap in peak demand,' said AIIB vice president D J Pandian. 'The project will also help the country move toward a more balanced and environmentally sustainable energy mix to ensure long-term energy sustainability.'
The project is in line with AIIB's energy sector strategy in reducing the carbon intensity of energy supply and catalysing private capital investment in renewable energy infrastructure.
Apex Press and Publishing Provided by SyndiGate Media Inc. (Syndigate.info).
