Muscat: Oman has signed a milestone agreement to develop its first large-scale solar power and battery storage facility, marking a decisive step in the Sultanate’s renewable energy transition and long-term sustainability agenda.
The deal was finalised by Nama Power and Water Procurement Company (PWP) with a consortium led by Abu Dhabi Future Energy Company PJSC – Masdar, alongside Al Khadra Partners, Korea Midland Power Co. Ltd. (KOMIPO), and OQ Alternative Energy (OQAE), Oman’s national renewable energy champion.
A First-of-Its-Kind Project
The project, known as the Ibri III Solar Independent Power Project, will integrate a 500 megawatt (MW) photovoltaic solar plant with a 100 megawatt-hour (MWh) Battery Energy Storage System (BESS).
In addition to delivering clean electricity to Oman’s grid, the BESS will provide critical stability by storing excess energy and managing demand fluctuations, an innovation not seen before at this scale in the country.
The scope of the project extends across the full lifecycle — design, financing, construction, ownership, operation, and maintenance — underscoring the consortium’s long-term commitment to Oman’s energy future.
Signing Ceremony in Muscat
The Power Purchase Agreement (PPA) was signed in Muscat under the patronage of H.E. Eng. Salim bin Nasser Al Aufi, Minister of Energy and Minerals.
Key signatories included:
Ahmed bin Salim Al Abri, CEO of PWP
Mohamed Jameel Al Ramahi, CEO of Masdar
Ghalib Al Maamari, Acting CEO of OQ Alternative Energy
Hind Suhail Salim Al Mukhaini Bahwan, Chairperson of Al Khadra Partners
Lee Young-jo, CEO of KOMIPO
The signing marked a major regional collaboration, bringing together public and private sector expertise from Oman, the UAE, and South Korea.
Minister’s Remarks
Speaking at the event, H.E. Eng. Salim bin Nasser Al Aufi said the agreement reflected Oman’s determination to accelerate its clean energy agenda.
“We are pleased to celebrate the signing of the agreement for the Ibri III Solar Power Plant, a milestone in the Sultanate of Oman’s transition towards renewable energy,” he said.
“This strategic project, covering nearly 10 million square meters, with a generation capacity of 500MW and a 100MWh battery energy storage system, embodies our commitment to achieving the objectives of Oman Vision 2040 and reaching Net Zero by 2050.”
Scale, Impact, and Investment
With an investment of around OMR 115 million, the Ibri III project will be one of Oman’s largest renewable ventures.
The plant is expected to:
Cut carbon dioxide emissions by approximately 505,000 tonnes annually.
Contribute up to 4% of Oman’s electricity generation mix from renewable sources.
Showcase advanced integration of solar and storage technology, improving energy reliability.
These outcomes align with Oman’s pledge to diversify its energy sources and reduce reliance on fossil fuels, while simultaneously attracting investment into its green economy.
Masdar’s Leadership Role
Masdar, the Abu Dhabi-based clean energy pioneer, will lead the consortium in delivering the project. CEO Mohamed Jameel Al Ramahi noted that Ibri III builds on Masdar’s regional expertise in deploying large-scale solar facilities.
The project reinforces Masdar’s role as a key partner for countries in the Middle East seeking to balance sustainability with energy security.
Strategic Value for Oman
Beyond renewable capacity, the Ibri III project carries broader strategic importance. By combining generation with storage, it addresses one of the main challenges of solar energy — intermittency.
It also demonstrates the success of Oman’s public-private partnership model, attracting global players while strengthening local expertise in advanced clean energy technologies.
For Oman, the project serves as both an energy milestone and an economic signal: a clear indication that the Sultanate is open for sustainable investment and innovation.
Looking Ahead
The Ibri III Solar and Battery Storage Plant is expected to serve as a blueprint for future projects in Oman and the wider Gulf region. With demand for renewable energy rising and governments committing to ambitious net zero targets, such integrated solutions are set to become increasingly common.
For Oman, this agreement is more than a contract — it is a step toward reshaping the country’s energy mix, reducing emissions, and cementing its place on the regional renewable energy map.
As construction begins, all eyes will be on Ibri III as a test case for how Oman can scale clean energy while delivering stability, innovation, and economic value in the journey to Net Zero 2050.
