EDF Renewables-KOWEPO Consortium Achieves Financial Closure for Manah 1 Solar PV Project in Oman
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A consortium led by EDF Renewables and Korea Western Power Corporation (KOWEPO) has achieved financial closure for the Manah 1 Solar PV Project, a 500MW solar power plant located in Al Dakhiliyah Governorate, Oman. The milestone, announced in line with COP28, marks a significant step towards the commencement of commercial operations in early 2025.
Consortium’s Winning Bid and Agreement
The consortium secured the bid for the solar power plant in September 2022 and subsequently signed a 20-year power purchase agreement (PPA) with Nama Power and Water Procurement Company (PWP) on March 23, 2023. This agreement entrusts the consortium with the responsibility to design, finance, build, and operate the solar plant. The project solidifies their commitment to support the region’s net-zero ambitions and aligns with EDF Group’s pledge to triple its renewable energy net capacity between 2023 and 2030.
Financing the Project
Financing for the Manah 1 Solar PV Project was made possible through a combination of equity and loan schemes from global and local financial institutions. Notable contributors include the Export-Import Bank of Korea, Societe Generale, and Oman’s Bank Muscat. The financial close was achieved on December 25, 2023, paving the way for the construction of the solar plant.
Impact on Oman’s Renewable Energy Goals
The Manah 1 Solar PV Project is a significant contributor to Oman’s clean energy objectives, which aim to achieve 35-39% renewable energy generation by 2040. Upon completion, the solar plant will supply clean electricity to over 50,000 households in Oman and is expected to reduce CO2 emissions by over 700,000 metric tonnes annually. This initiative represents a vital stride in Oman’s journey towards a cleaner and more sustainable energy future.
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