A consortium led by Abu Dhabi Future Energy Company ( Masdar ) has reached financial close for the Ibri III Solar Independent Power Project in the Sultanate of Oman.

Debt provided by Natixis Corporate & Investment Banking ( Natixis CIB ) and First Abu Dhabi Bank ( FAB ) will cover a substantial portion of the total project costs, estimated at around US$300 million.   

Alongside Masdar, the consortium partners are Al Khadra Partners, Korea Midland Power ( Komipo ), and OQ Alternative Energy ( OQAE ).

Ibri III is the first utility-scale solar and battery storage project in Oman, and is being developed for Nama Power and Water Procurement Company ( Nama ). It combines a 500-megawatt photovoltaic plant with a 100-megawatt-hour battery energy storage system ( BESS ), producing enough electricity to power around 33,000 homes. 

The project will contribute to the Oman Vision 2040 goal of diversifying energy resources, including the target of generating 30% electricity from renewables by 2030.

 “We see great potential for battery energy storage to expand renewable energy deployment, and we look forward to leveraging our expertise in BESS and other advanced technologies to deliver clean, secure power for the sultanate,” says Masdar chief executive officer Mohamed Jameel Al Ramahi.

The project covers the design, construction, ownership, financing, operation, and maintenance of the plant and storage system. A power purchase agreement ( PPA ) for the project was signed last September.

Nama is the procurer of all electricity and desalinated water projects in Oman, currently contracting with around 11 desalination plants and 15 power plants.