11 December, 2019

Oman likely to invite proposals for hybrid power project in December

11 sites to be awarded to successful single bidder under BOOT framework

Image used for illustrative purpose. Solar panels at sunny power plant.

Image used for illustrative purpose. Solar panels at sunny power plant.

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11 December 2019

Oman's Rural Areas Electricity Company (RAECO), also known as Tanweer, is expected to float request for proposal (RFP) for its 11-site Solar PV-Diesel-Storage Hybrid project in the fourth quarter, a source aware of the details said.

The project entails the development of hybrid power plants through Build-Own- Operate-Transfer (BOOT) framework, according to a prequalification document issued by Tanweer in August. The document, posted on the state-owned company's website, said all sites are tendered to a single applicant and the initial power purchase agreement (PPA) with Tanweer as the off-taker would be for a period of 15 years.

"The RFP is expected to be issued on 15 December 2019 with the commercial bid submission scheduled for 22 June 2020," the source told Thomson Reuters Projects, adding that the contract award is expected in third quarter of 2020.

The approximately $180 million project consists of five hybrid plants in Dhofar governorate, two in South Sharqiya, two in Al Wusta, one in Musandam and one in Dhahirah, the source said.

The prequalified bidders list comprises of Mainstream Renewable Power, Tesla and FG Wilson Engineering consortium; Alfanar: Voltalia; EDF Renouvelables and Alawi Tunsi & Bros; Fotowatio Renewable Ventures and Aggreko; Wartsila and MB Holding Engineering Company; Total Solar and Altaaqa Global; Scatec Solar; Engie; Mytilineos Holding; Jinko Solar; Canadian Solar and Bahwan Engineering Company - Renewable Energy, and the consortium of Shell, Entertech, Enerwhere, HTC; and NTPC, officials from these companies confirmed with Thomson Reuters Projects.

The plants would be located in Madha, Masrooq, Mittan, Al-Mazyunah, Farshat Qatbeet, Al-Hallaniyat, Hasik, Hitam, Al-Khadra, Al-Khuwaima and Masirah, a second source told Thomson Reuters Projects.

He said the scope of work involves the construction of 70 MW of diesel generation capacity, 48 MW solar photovoltaic capacity, and 28 MW/14 MWh of battery energy storage.

Synergy Consulting and Ahli Bank are the lead and financial advisers respectively; DNV GL is the technical adviser and DLA Piper is the legal adviser, a third source told Thomson Reuters Projects.

The project is slated for completion in the fourth quarter of 2023, he added.

(Reporting by Senthil Palanisamy; Editing by Anoop Menon)

(anoop.menon@refinitiv.com)

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