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Solar project receives first green guarantee in Oman

(Image for illustration only)
(Image for illustration only)

A leading international bank, Standard Chartered, has made a significant announcement regarding its first-ever green guarantee in Oman. The bank issues green guarantee to China Energy Engineering Co-Shanxi Electric Power Engineering Company (CEEC-SEPEC) for a solar project in Oman. This groundbreaking initiative highlights both Standard Chartered's and CEEC-SEPEC's dedication to sustainable finance and their commitment to supporting renewable energy projects globally and regionally.

CEEC-SEPEC — a China-based company mainly engaged in power engineering construction business — won the bid from Singapore Sembcorp Group for the Manah II Photovoltaic Power Generation EPC General Contracting Project in Oman. CEEC-SEPEC assumes the pivotal role of the primary engineering, procurement, and construction (EPC) contractor, responsible for establishing and managing a cutting-edge solar power facility.

The project encompasses an expansive area of 680.35 hectares in Manah and boasts a total installed capacity of 588.2 megawatts. Additionally, it includes the establishment of a new 400 kV booster station and transmission line. The project is scheduled to commence commercial operations on May 1, 2025.

This endeavour aligns seamlessly with Oman's objectives for renewable energy expansion, with a focus on reducing carbon emissions. Once completed, it will play a pivotal role in advancing Oman's renewable energy transformation and is projected to reduce greenhouse gas emissions by approximately 340,000 tonnes annually.

Hussain al Yafai, CEO Standard Chartered Oman, said, "We are proud to play a vital role in facilitating sustainable development in Oman. By issuing the first green guarantee for CEEC- SEPEC's renewable energy project, we are not only supporting the growth of the renewable energy sector but also aligning our efforts with Oman's vision of a more sustainable future. This partnership demonstrates our unwavering commitment to driving positive change and advancing the transition to clean energy."

The green guarantee provided by Standard Chartered represents a financial commitment that ensures the project's successful completion and adherence to environmental standards. It serves as a form of risk mitigation for the solar project, enhancing its attractiveness to investors and lenders. This guarantee underscores Standard Chartered's expertise in sustainable finance and its willingness to support environmentally friendly initiatives.

Meanwhile, Wang Xinping, Chairman of CEEC- SEPEC, stated, "We are pleased to have Standard Chartered as our trusted financial partner for this landmark project. This green guarantee is a testament to our shared commitment towards renewable energy development in Oman. With Standard Chartered’s support, we will accelerate the transition towards a low-carbon economy, contribute to Oman's sustainable development goals, and create a positive impact for the local community."

The Sultanate of Oman has been actively investing in renewable energy sources to diversify the country’s energy mix and reduce reliance on fossil fuels. By supporting such projects, Standard Chartered plays a crucial role in facilitating the transition to cleaner and more sustainable energy systems. Standard Chartered's decision to issue its first green guarantee for a renewable energy project in Oman reflects the bank's recognition of the country’s potential for renewable energy development.

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