LARGEST SOLAR PHOTOVOLTAIC PROJECT UNDERWAY IN THE SULTANATE OF OMAN
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The Manah 1 project, in line with the “Oman Vision 2040” will increase power generation capacity through renewable independent power projects.
From an energy perspective, the Sultanate of Oman is probably better known as an oil and gas developer, but it also competitive in the solar and wind energy space, having recognised the need to diversify its economy and reduce its carbon footprint. Innovation and sustainability are expected to be Oman’s new engine of growth. “Oman Vision 2040”, the national reference for economic and social planning for the period 2021-2040, was launched in early January 2021 by the Sultanate of Oman, encompassing a National Energy Strategy setting out the path towards an environmentally friendly energy mix, with an increasing share dedicated to renewable energy.
The Sultanate of Oman has embarked on a number of projects to achieve this goal, one of them being the Manah 1 solar photovoltaic project implemented by the Wadi Noor Solar Power Company (WNSPC), a special purpose vehicle established by a consortium comprising EDF Renewables and Korea West Power Company (KOWEPO).
Manah 1 project is underpinned by the strong rationale for Oman to expand its electricity generation capacities through renewable independent power projects (“IPPs”) with the objective to derive at least 20% of electricity consumption from renewables by 2030, and 35% to 39% in 2040, in a context where the demand for electricity is increasing due to Oman’s continuous growth.
Located 170 kilometres south of the city of Muscat, this 500 megawatt (MW) solar project will set a new standard in the Sultanate of Oman’s solar power market aligned with Omani climate goals.
Once operational, the Manah 1 project is expected to power 50,000 Omani homes and offset over 700,000 metric tons of CO2 annually. The plant would span over approximately 7.8 square kilometres in the Al Dakhiliyah Governorate, will deploy over 1 million bifacial PV modules mounted on a single axis tracker system and will be operational in 2025.
Societe Generale acted as MLA, Lender, Hedge Provider, Hedge Coordinator, Documentation Bank, ECA Coordinator and ECA Agent on the Manah 1 project to support the Sultanate of Oman’s energy transition plan. It will also enable Societe Generale Group to consolidate its position in the Middle East region and assert itself as the bank for energy transition financing, advisory and investment with a commitment to positive impact.
