Oman is likely to issue a Request for Proposals (RfP) in the fourth quarter of this year to set up its first large scale solar Independent Power Project (IPP), a report said.

Oman Power and Water Procurement Co (OPWP) plans to procure several IPPs providing around 2,400 MW of new gas-based capacity, and a new Independent Water Projects offering a total of over 800,000 cu m per day of new desalination capacity, Oman observer reported.

Future procurement initiatives may include additional solar or wind IPPs, a gas-fired IPP for service in 2024, and the first coal-fired IPP for operation beyond 2024, the state-owned utility said.

“OPWP plans to procure Oman’s first large-scale solar IPP in 2017. Technical advisers have been engaged to develop tender documents and an appropriate evaluation methodology that assures a cost-effective project without subsidy. OPWP expect to issue the RFP in Q4 2017, for capacity of at least 200 MW, to be operational by 2020,” the report quoted a statement from the utility.

The move comes as OPWP is faced with burgeoning electricity demand projected to grow at the rate of about 6 per cent annually from 5,920 MW in 2016 to 8,960 MW in 2023, it added.