Construction & Real Estate

EDF consortium inks power purchase deal for 120MW Oman plant

MUSCAT
EDF consortium inks power purchase deal for 120MW Oman plant

A consortium led by top European utility EDF Power Solutions with key partners - Al Khadra Partners and OQ Alternative Energy (OQAE) the national champion for clean energy - has signed a 20-year power purchase agreement with Oman's Nama Power and Water Procurement for the development of the 120MW Jaalan Bani Bu Ali (JBB) wind power plant in the sultanate.

Spanning an area of 10.7 sq km of land, the JBB Wind Project is located in the Ash Sharqiyah South Governorate, approximately 440km from the Port of Duqm. 

The wind farm will consist of 16 wind turbines, each with a power output of 7.7 MW. The project is expected to reach financial close next year and connect to the grid in Q3 2027.

Upon completion, JBB Wind Farm will generate renewable electricity sufficient to power over 13,500 Omani households, said a statement from Nama Power. 

The project will help cut more than 270,000 tonnes of CO₂ annually, contributing to Oman's climate change mitigation goals, while creating jobs and sharing expertise with the local population.

Speaking on the occasion, Engineer Salim bin Nasser Al Aufi, the Minister of Energy and Minerals, said: "We are pleased to mark the signing of the Jaalan Bani Bu Ali Wind Power Project agreement in the South Al Sharqiyah Governorate."

"The project represents a pioneering step within the Sultanate of Oman's efforts to strengthen the national renewable energy system, embodying our firm commitment to achieving the pillars of Oman Vision 2040 for the energy sector and the net-zero target by 2050," he stated.

Al Aufi said Wilayat Jaalan Bani Bu Ali was selected as the site for this vital project, which spans an area of approximately 11 million sq m and stands as one of the country's most prominent wind energy projects. 

The project entails an investment of around RO50 million and will contribute to reducing carbon emissions by approximately 270,000 tonnes annually. 

This reflects the Sultanate of Oman's strategic direction towards building a modern energy system based on sustainability, enhancing the efficient use of the Sultanate of Oman's natural resources, and strengthening the contribution of national competencies in the energy sector."

Nama Power CEO Ahmed bin Salim Al Abri said the JBB Wind Power Project represents a key milestone in Oman's transition to clean energy, with an annual generation capacity of approximately 352,380 MWh.

"The project will free up around 67 million cu m of natural gas each year, underscoring Nama Power and Water Procurement's commitment to supporting the Sultanate's energy diversification objectives and ensuring the long-term sustainability of the electricity sector," stated Al Abri.

"In addition, the project will boost local content by creating greater opportunities for SMEs and contributing to national economic growth through the In-Country Value (ICV) programme, by allocating a portion of contracted works to Omani companies," he noted. 

"This approach will stimulate local business growth, generate employment, reduce import dependence, and drive development in South Ash Sharqiyah Governorate," he added.

Olivier Bordes, the Managing Director Middle East of EDF power solutions, said: "EDF power solutions is proud to launch its second renewable project in Oman—and first Wind project in partnership with Al Khadra Partners and OQAE. This new collaboration marks an important step for us in the country and demonstrates the value we bring through our industrial know-how and technical expertise."

"As a leading low-carbon developer, we are honoured to expand our role in wind project development and operations, supporting the Sultanate of Oman in its efforts to decarbonize and diversify its energy mix, and contributing to Oman's net-zero ambitions," he stated.

Sheikha Hind Bahwan, Chairperson of Al Khadra Partners, said: "We are honoured to partner with EDF and OQAE in developing this prestigious wind power project. This award reflects our shared commitment to advancing clean energy and supporting the nation's long-term sustainability vision."

" As a co-developer, Al Khadra Partners is proud to bring our regional expertise and deep understanding of local project execution to ensure the successful delivery of this landmark initiative," she stated. 

"This project will further strengthen Sultanate of Oman's leadership in the energy transition and create lasting environmental and economic value for the Sultanate of Oman and its people," she added.

Eng. Ghalib Al Maamari, Acting CEO of OQ Alternative Energy, said: "This project represents a continuation of OQ Alternative Energy's efforts to strengthen Oman's presence in clean and renewable energy and to accelerate the country's energy transition."

"Through this partnership with EDF power solutions and Al Khadra Partners, we are reinforcing OQAE's role as the national champion for clean energy - bringing together international expertise and local capability to deliver reliable, emissions-free power for the national grid. Projects such as the Jaalan Bani Bu Ali Wind Project contribute directly to Oman's energy security, economic diversification, and Net Zero 2050 ambitions, while creating long-term value for the sultanate," stated Al Maamari.

JBB wind farm will help to achieve the target of increasing the share of the renewables in the energy mix in the sultanate to reach a minimum of 30% by 2030. 

Set to be one of the largest onshore wind farms in Oman, the project will be developed, built, owned and operated by the consortium as part of a 20-year power purchase agreement with the off-taker Nama PWP, he added.-TradeArabia News Service

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