Masdar-led consortium secures Ibri III solar close

Abu Dhabi-based clean energy company Masdar has reached financial close on the Ibri III Solar Independent Power Project in Oman, marking a milestone for the sultanate’s power sector as it brings together utility-scale solar generation with battery energy storage for the first time. The project is being developed by a consortium comprising Masdar, Al Khadra Partners, Korea Midland Power Co. and OQ Alternative Energy.

The consortium said project finance has been secured from Natixis Corporate & Investment Banking and First Abu Dhabi Bank, enabling construction to proceed on schedule. The development, located near Ibri in north-west Oman, is designed to add firm, dispatchable renewable capacity to the national grid at a time when electricity demand growth and decarbonisation targets are converging.

Ibri III is structured as an Independent Power Project with an integrated battery energy storage system, a configuration that allows solar output to be smoothed and shifted to peak demand periods. Industry executives familiar with the project said the storage component is central to improving grid stability and reducing reliance on gas-fired generation during evening hours, a persistent challenge for solar-heavy systems.

For Masdar, the financial close reinforces a strategy of pairing renewables with storage across markets where power systems are undergoing structural change. The company has expanded its footprint in the Middle East, Central Asia, Africa and Europe through large-scale solar and wind projects, often working alongside national utilities and sovereign-linked partners. In Oman, Masdar has built a growing portfolio that aligns with Muscat’s targets to raise the share of renewables in electricity generation and curb emissions from the power sector.

KOMIPO’s participation reflects a broader trend of Asian utilities investing overseas to diversify earnings and gain exposure to clean energy technologies. The South Korean power producer has stepped up its international renewables activity as domestic policy and market conditions evolve. OQ Alternative Energy, part of the OQ group, brings local market knowledge and a pipeline aligned with Oman’s energy transition plans, while Al Khadra Partners adds investment and development experience within the sultanate.

Bankers involved in the transaction said lender appetite for projects combining renewables with storage has strengthened as regulatory frameworks mature and revenue structures become clearer. Battery-backed solar projects can command higher confidence from financiers when long-term offtake agreements and predictable cash flows are in place. The involvement of regional and international banks underscores the project’s bankability and the depth of liquidity available for energy transition assets in the Gulf.

Oman has emerged as an increasingly active market for utility-scale renewables, driven by policy reforms, competitive procurement and the need to manage domestic gas consumption. Large solar developments such as Ibri II paved the way for further private investment, while newer tenders have introduced additional technologies and more complex project structures. Ibri III’s hybrid design is viewed by sector analysts as a test case that could inform future procurements, particularly as storage costs continue to decline.

Construction of the project is expected to create local employment and support supply chains, while the operational phase will contribute to long-term power price stability. Grid operators are expected to benefit from the ability to dispatch stored energy during peak hours, reducing exposure to fuel price volatility and lowering overall system emissions.