The Rural Areas Electricity Company (Raeco), a subsidiary of The Electricity Holding Company (Nama Group), plans to launch seven small-scale solar and wind energy projects in Oman, a report said.

Tenders for the new initiatives are currently under preparation, added the Oman Observer report, citing Bin Salim Al Maghderi, chief executive officer.

“Diesel is not only very expensive, but also environmentally unfriendly as well,” Al Maghderi was quoted as saying in the report.

“Hence, there is a target to reduce diesel-based generation by around 25 per cent and replace this capacity with solar and wind capacity within five years. This directive has come from the sector regulator.”

Raeco recently celebrated the launch of Oman’s first commercial scale solar power plant, the report said.

Next month, the utility will begin construction work on the country’s first large-scale wind power project at Harweel in Dhofar Governorate. The 50 MW capacity venture is being jointly developed by Raeco and Abu Dhabi’s renewable company Masdar, with an investment of about $125 million, the report said.