MUSCAT: Marking the end of a brief hiatus in the procurement of new gas-based power generation – in line with the country’s transition to renewable electricity – Oman’s power sector authorities are gearing up to announce a landmark procurement for one or more gas-based power projects based on advanced thermal Combined Cycle Gas Turbine (CCGT) technology.
Nama Power and Water Procurement (PWP), the single procurer of power and water capacity and output in the Sultanate of Oman, has revealed that it is preparing to launch a competitive tender for the procurement of around 2,400 MW of thermal CCGT power capacity based on the Build, Own and Operate (BOO) model.
A tender for the new capacity is expected to be released in Q2 2025, with an award date targeted by Q4 2025. The new capacity is scheduled to be operational by Q2 2029 with early power provision by Q2 2028.
Significantly, the new project will be first since the joint procurement of the Ibri II 1510 MW and Sohar III 1710 MW power plants back in 2016, which were commissioned in early 2019. Since then, following an energetic procurement programme centring primarily on solar PV based renewable capacity, Nama PWP has focused on building the country’s solar and wind generation resources in line with targets set by the government.
But in light of the need to ensure grid stability in the face of multiple factors, notably energy demand growth, intermittency challenges associated with renewable based generation, and old power plants progressively falling out of contract, new gas-based power capacity has become inevitable, according to Nama PWP.
Ahmed bin Salim al Abri, Chief Executive Officer of PWP, explained: “This project will enhance grid stability in Oman by integrating advanced thermal power plants, ensuring reliable and sustainable energy through a balanced energy mix. It marks a significant step in the company’s ongoing commitment to providing a sustainable energy future for Oman.”
The initiative, he further noted, marks a significant step in Nama PWP ongoing commitment to ensuring a reliable and sustainable energy future for Oman through a balanced mix of energy sources, including both renewable and thermal power plants.
While state-owned Nama PWP – part of Nama Group - is committed to increasing the share of renewables in the energy mix, particularly solar, wind and energy storage, it also recognises the ongoing need for thermal power plants to meet base-load electricity demand and ensure grid security.
“PWP plans to continue its investments in efficient, modern, environment-friendly thermal power generation facilities, including natural gas-fired plants, which are expected to play a crucial role in the country's energy supply for the foreseeable future,” PWP noted in a statement.
Importantly, the new thermal conventional power capacity will be based on advanced technology, and will leverage energy transition opportunities to optimise fuel use and reduce environmental impact. Proposals that prioritise sustainability through reduced carbon output, minimal water usage and minimal land impact will be considered.
Additionally, the new capacity will leverage state-of-art environment-friendly thermal CCGT technology, which combines gas and steam turbines for improved efficiency as well as emissions reduction.
In anticipation of the imminent release of a Request for Expressions of Interest, interested developers have been encouraged to get geared for the procurement of this strategic project, PWP added.
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