Oman wind project secures financing for 120MW expansion

Greenlogue/AP

A consortium led by EDF power solutions has reached financial close on Oman’s 120-megawatt Jaalan Bani Bu Ali Wind Independent Power Project, clearing a key hurdle for construction and commercial operation targeted for the third quarter of 2027.

EDF power solutions is developing the project with Al Khadra Partners, part of the Hind Bahwan Group, and OQ Alternative Energy. The partners secured financing after signing a 20-year power purchase agreement with Nama Power and Water Procurement Company, which will purchase electricity generated by the wind farm.

The financial close turns the Jaalan Bani Bu Ali, or JBB, project from a contracted development into a fully financed renewable power investment. It also signals lender confidence in Oman’s emerging market for utility-scale wind projects as the country seeks to reduce the electricity sector’s dependence on natural gas.

Located in South Al Sharqiyah Governorate, the development covers about 10.7 square kilometres and lies roughly 440 kilometres from the Port of Duqm. It will have 16 wind turbines rated at 7.7 MW each, with the project’s contracted generation capacity stated at 120 MW.

Commercial operations are scheduled for the third quarter of 2027. Preparatory and mobilisation work has already been under way, with the main construction programme planned to advance during 2026 and 2027.

The wind farm is expected to generate about 352,380 megawatt-hours of electricity annually. That output would be sufficient to meet the equivalent annual electricity requirements of more than 13,500 households. Its operation is also expected to prevent more than 270,000 tonnes of carbon dioxide emissions a year.

The additional renewable generation could displace about 67 million cubic metres of natural gas annually. That is significant for Oman because natural gas remains an important fuel for domestic electricity production as well as a valuable resource for industrial use and export-related activities.

Investment in JBB has been estimated at around OMR50 million. Beyond generation capacity, the developers expect construction and operation to support employment, technical skills development and contracting opportunities for local companies through Oman’s In-Country Value programme.

Saba Jalan Wind Power Company is the project vehicle overseeing development. EDF power solutions holds a 49 per cent interest, while Al Khadra Partners has 26 per cent and OQ Alternative Energy holds the remaining 25 per cent.

The engineering and construction programme involves Chinese contractors, while Goldwind is supplying the wind turbines and blades. The project will require associated electrical infrastructure to transmit production into Oman’s power system.

For EDF power solutions, the project represents its first wind transaction in Oman and expands a renewable energy portfolio in the country that already includes solar power. The group has increasingly combined international development expertise with Omani partners as Muscat opens larger portions of its electricity market to private renewable investment.

Al Khadra Partners has also expanded its exposure to the power industry as the Hind Bahwan Group builds a pipeline of generation projects across Oman. OQ Alternative Energy, established as the clean-energy arm of OQ, is pursuing solar, wind, green hydrogen and industrial decarbonisation investments.

JBB forms part of a much larger expansion of wind generation being planned by Nama PWP. The procurement programme has included the Dhofar II, Duqm, Mahoot I and Sadah wind independent power projects alongside Jaalan Bani Bu Ali.

Earlier procurement plans envisaged capacity of roughly 234 MW to 270 MW at Duqm, 342 MW to 400 MW at Mahoot I, 114 MW to 132 MW at Dhofar II and 81 MW to 99 MW at Sadah. Together, the developments are intended to create a geographically diversified wind portfolio serving Oman’s main interconnected and Dhofar electricity systems.

Oman already operates the 50 MW Dhofar wind farm, which began commercial operations in 2019. The next generation of projects is substantially larger and is being structured through long-term private-sector power agreements designed to attract international developers, equipment suppliers and project financiers.

via Greenlogue.com

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