New partnership to help set up solar, wind power plants in Oman

New solar and wind power plants could soon be set up in Oman, under an agreement between local company Anvwar Asian Investments (AAI), and a consortium of international investors.

The move is expected to reduce Oman’s dependence on fossil fuel-based sources of energy, such as oil and gas, which is also part of the objectives of Oman Vision 2040.

Under the agreement, solar and wind power systems could be either set up as joint ventures, build, operate and transfer (BOT) schemes, or a build, operate, own and transfer (BOOT) arrangement, with the government.
“Oman wants to expand its electricity generation capacities through renewable independent power projects (IPPs),” said Anvwar Al Balushi, the Chairman of AAI. “IPPs are expected to create tremendous job opportunities for the Omani workforce.

“Oman has one of the highest solar densities in the world, according to the Authority for Electricity Regulation in Oman,” he added.

“Solar energy has the potential to provide sufficient electricity to meet all of Oman’s domestic electricity requirements.”

As far as wind energy is concerned, prospects of setting up facilities in the coastal areas in southern Oman, as well as in the mountains to the north of Salalah, the capital of the Dhofar region, are being looked at.

There is also significant potential in building offshore wind turbines to generate wind energy.