Oman’s Rural Areas Electricity Company (RAEC), part of Nama Group, has signed two agreements for the development of the Dhofar Wind Power Project, the first utility scale wind-based renewable project in the GCC, a report said.

The first was a Power Purchase Agreement (PPA) by RAEC with Oman Power and Water Procurement Company (OPWP), while the second was a Power Connection Agreement with Oman Electricity Transmission Company (OETC), reported Oman Observer.

The pacts come on the heels of the award of the Engineering, Procurement and Construction (EPC) contract for the execution of the project by the Abu Dhabi Future Energy Company (Masdar), which is developing the Dhofar Wind Power Project in partnership with RAEC, the report said.

The 50 MW Wind Energy Project will be based in the Fetkhit area of Wilayat of Shaleem and Halaniyat Islands in the Governorate of Dhofar.

Studies undertaken by various agencies have validated the potential for solar and wind based power generation, Saleh bin Nasser al Rumhi, CEO of RAEC was quoted as saying in the report.

“Electricity demand continues to grow exponentially, fuelled by the development process, socioeconomic growth and the government’s diversification strategy. Electricity supply soared to 30.4 terawatt hours in 2016, up over five per cent from the previous year’s tally, but 220 per cent higher than in 2005, when the sector was restructured,” he added.

A total of 13 wind turbines will be installed on a 1,900 hectare site, offering a total generation capacity of 160 gigawatt-hours/year of clean energy.

Al Rumhi added that establishment of the 50 MW Dhofar Wind Power Project is large enough to accommodate a sizable capacity expansion.

“We have reserved quite a large area keeping in mind the potential for an expansion of the plant in the future, although a decision to expand will be based on the performance and economic analysis,” he said.

Any expansion in the future, he further noted, will also take into account technological advancements in wind turbines, experience garnered by RAEC in the implementation of its maiden project as well from other wind power schemes.

The wind power project is expected to be completed by end 2019 and connected to the Dhofar grid during the following year. RAEC is the owner of the project, and will be responsible for operation and maintenance of the plant once it comes on stream, Al Rumhi added.