Consortium completes finance on Oman 500MW solar plant
Image Source: Verogy
The solar project will begin operation in Q1 2025, providing more than 50,000 homes with power
A consortium led by French utility specialist EDF Renewables and Korea Western Power Corporation (Kowepo), has announced that it has reached financial close on Manah 1 – a 500MW solar power plant located in Oman.
Following the bid submission in September 2022, the consortium was awarded and signed a 20-year Power Purchase Agreement (PPA) with Oman Power and Water Procurement Company (PWP) in March last year.
As per the PPA, the consortium will be responsible for the design, finance, construction and operation of the plant located in the Al Dakhiliyah Governorate, 175km south of Muscat. The plant will begin commercial operation during the first quarter of 2025.
Once commissioned, the Manah 1 project will power more than 50,000 Omani households providing clean energy, while off-setting over 700,000 metric tonnes of CO2 per year.
The Manah 1 project is the first for EDF Renewables and Kowepo in the sultanate and is part of the consortium’s strategy to support the region’s Net Zero ambitions, as well as contribute to Oman nation’s Clean Energy Goals, through the diversification of the country’s energy mix aiming at 35-39% of renewable generation by 2040.
The financing for the project will be secured through equity and loan schemes sourced from local and international financial institutions, such as the Export-Import Bank of Korea, European bank Société Générale and Oman Bank Muscat.
EDF Renewables Middle East CEO, Olivier Bordes said, “Today we are reaching the financial close for this project, which highlights our strong commitment to contribute to Oman’s goal to produce from 35 to 39% of its electricity from renewable sources by 2040, and demonstrates EDF Renewables and Kowepo’s consortium’s continuing support for the sultanate in reaching its Clean Goals. The consortium’s first large-scale renewable installation in the country is perfectly in line with the EDF Group commitment to triple the renewable energy net capacity in operation worldwide, between 2023 and 2030.”
Korea Western Power Corp CEO (for MENA region), Youn Ho Ko added, “We are very pleased to announce the successful financial close of the Manah 1 solar PV project, and that we are the first Korean company to be awarded a project in Oman. This achievement was possible due to the strong partnership with EDF Renewables and their extensive experience and the unwavering support of Société Générale, KEXIM Bank and Bank Muscat.”
