Oman’s PDO launch tender for first renewable energy IPP

Petroleum Development Oman (PDO), the sole wholesale buyer of electricity and related water from licensed production facilities in Oman, has issued a Request for Expression for Interest for the Amin Solar PV IPP project. This is PDO's first renewable energy project being implemented as an independent power project (IPP) in the country. 

The solar photovoltaic independent power project will involve the development of a utility scale solar photovoltaic plant with a nominal capacity of 100 MW peak AC at Amin, which is located in the southern region of the Oman, approximately 210km north-west from Salalah. 

The project includes the design, construction, ownership, financing, operation and maintenance of an 100 MW independent solar power plant under a build, own, operate, transfer (BOOT) framework.

PDO will enter into a 23-year Power Purchase Agreement (PPA) in respect of the project commencing on the scheduled commercial operations date. Under the PPA, PDO will purchase all of the capacity and output from the project. 

It is envisaged that the project will be privately financed through a combination of sponsor and third party equity and non-/limited recourse debt under a similar structure to previous IPPs. It is intended that PDO will sign a direct agreement with the project’s lenders setting out financial commitments

PDO have stipulated that bidders must demonstrate the successful development (i.e. from project award to commercial operation), during the five (5) year period, of at least two large scale solar PV independent power projects with an aggregate capacity of 100 MWp and a track record of efficient operation and maintenance (either as principal or arranging outsourcing and subcontracting of this role), during the three (3) year, of at least two power projects each with an installed power plant capacity of at least 100 MWp of which one must have been implemented as a solar PV power project.

For more information on the RFEOI, see the Business Opportunity.

This follows Oman Power and Water Procurement Company (OPWP) initiating the development of the country's first MW-sized PV plant in May, with a request for proposals for legal advisors for the project. As reported on this platform, an RFQ for the financing, procurement, engineering, construction, operation and maintenance of the 500 MW plant was issued just before the new year.

Oman is working to achieve around 4 GW of renewable generation capacity by 2030. This power would cover at least 10% of national demand.