Oman's 120MW Jaalan Bani Bu Ali Wind Project Secures Financing
A consortium led by EDF power solutions has achieved financial close for Oman's 120MW Jaalan Bani Bu Ali Wind Independent Power Project. The project is set for commercial operation by Q3 2027 and aims to reduce the country's reliance on natural gas for electricity.
Key takeaways
- Oman's 120MW Jaalan Bani Bu Ali Wind project has secured financing, marking a key step toward its construction.
- The project is expected to be operational by the third quarter of 2027 and will reduce Oman's reliance on natural gas for electricity.
- Consortium partners include EDF power solutions, Al Khadra Partners, and OQ Alternative Energy.
- The wind farm will generate approximately 352,380 MWh annually and prevent over 270,000 tonnes of CO2 emissions.
- Investment is estimated at OMR50 million, with significant local economic benefits anticipated.
What Happened
A consortium led by EDF power solutions has reached financial close for Oman’s 120-megawatt Jaalan Bani Bu Ali Wind Independent Power Project. This development marks a significant step toward the project's construction and planned commercial operation in the third quarter of 2027.
EDF power solutions is developing the project in partnership with Al Khadra Partners, a division of the Hind Bahwan Group, and OQ Alternative Energy. The agreement for financing was secured following the signing of a 20-year power purchase agreement with Nama Power and Water Procurement Company, which will buy the electricity generated by the wind farm.
The financial close transforms the Jaalan Bani Bu Ali project into a fully funded renewable power investment. It also indicates lender confidence in Oman's nascent market for large-scale wind projects, aligning with the nation's objective to lessen the electricity sector's dependence on natural gas.
Key Facts
- The project is named the Jaalan Bani Bu Ali Wind Independent Power Project and has a capacity of 120 megawatts.
- Financial close has been achieved by a consortium led by EDF power solutions.
- Project partners include Al Khadra Partners (part of Hind Bahwan Group) and OQ Alternative Energy.
- A 20-year power purchase agreement is in place with Nama Power and Water Procurement Company.
- Commercial operation is targeted for the third quarter of 2027.
- The project is located in South Al Sharqiyah Governorate and covers approximately 10.7 square kilometres.
- It will feature 16 wind turbines, each with a 7.7 MW rating.
- The estimated annual electricity generation is 352,380 megawatt-hours, enough for over 13,500 households.
- Annual carbon dioxide emissions are expected to be reduced by more than 270,000 tonnes.
- The project is anticipated to displace approximately 67 million cubic metres of natural gas annually.
- Investment in the project is estimated at around OMR50 million.
- EDF power solutions holds a 49% stake, Al Khadra Partners 26%, and OQ Alternative Energy 25%.
- Chinese contractors are involved in engineering and construction, with Goldwind supplying turbines and blades.
- Saba Jalan Wind Power Company is the project vehicle.
- This is EDF power solutions' first wind project in Oman, complementing its existing solar power portfolio.
- The project is part of a broader expansion of wind generation planned by Nama PWP, which includes other projects like Dhofar II, Duqm, Mahoot I, and Sadah.
Why It Matters
The Jaalan Bani Bu Ali wind project's financial closure and progression toward operation are significant for Oman's energy strategy. The initiative directly addresses the country's aim to reduce its reliance on natural gas for electricity production, a fuel that is also vital for domestic industry and exports.
The project's expected annual output could displace a substantial volume of natural gas, contributing to both emissions reduction and the conservation of a valuable resource. Furthermore, the development is intended to stimulate local economies through job creation, skills enhancement, and opportunities for Omani businesses participating in construction and operation.
Background
The wind farm's development is situated within a larger context of Oman's efforts to expand its renewable energy capacity. Nama PWP is coordinating a wider programme of wind power generation, including other projects across different governorates. These combined efforts aim to establish a diverse portfolio of wind energy sources to serve Oman’s electricity grids.
EDF power solutions' involvement signifies a growing trend of international developers partnering with Omani entities as the country opens its electricity market to private investment in renewables. Al Khadra Partners and OQ Alternative Energy, representing private and state-backed clean energy initiatives respectively, are also expanding their presence in the sector.
Story by Project Chintan
Related stories
Vietnam's Grid Faces Heatwave Strain with Power Plant Outages
Iran Negotiates Strait of Hormuz Reopening Amid Demands for US Concessions
