Gulf Construction Online - PDO invites developers for 100 MW solar plant

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Officials at the opening of the solar car-park.

PDO invites developers for 100 MW solar plant

01 February 2018

Petroleum Development Oman (PDO) has invited expressions of interest (EoIs) from companies to take part in a competitive tender for a 100-MW utility-scale solar photovoltaic project in southern Oman, a report said.

The project is set to be majority-government-owned PDO’s first renewable energy venture being developed as an independent power project (IPP), reported the Oman Observer.

Electricity output from the plant will be lifted by PDO as the sole offtaker under a 23-year power purchase agreement (PPA) with the developer, it added. The successful bidder will be awarded a long-term concession to design, construct, finance, operate and maintain the solar plant for the duration of the PPA term.

“It is envisaged that the project will be privately financed through a combination of sponsor and third-party equity and non/limited recourse debt under a similar structure to previous IPPs. It is intended that PDO will sign a direct agreement with the project’s lenders setting out financial commitments,” the report said, citing PDO.

PDO was expected to request for proposals (RfP) by the end of last month (January), while the award of a concession is targeted for June, the report said.

Meanwhile, PDO has officially opened the first solar car-park at its headquarters in Muscat.

Thousands of solar panels were installed in car parks at Mina Al Fahal to provide power for PDO’s office buildings, said the leading oil exploration company.

The move will help save more than 3.1 million cu m of gas a year, enough to provide electricity for almost 1,000 homes. It will also cut carbon dioxide emissions by 6,662 tonnes annually, the equivalent of taking more than 1,400 cars off the road or planting almost 173,000 trees.

The 6 megawatt installed peak (MWp) solar project, which will generate 9.48 million electrical units (kWh) per year, was officially inaugurated by Mohammed bin Salim Al Tobi, Minister of Environment and Climate Affairs, in the presence of PDO managing director Raoul Restucci and other senior officials.

The renewable energy scheme was executed as a joint venture by Spanish company Elecnor in partnership with Omani firm Rukun Al Yaqeen (RAY) International. It involved installation of a total of 19,500 solar photovoltaic (PV) modules to the canopies of 2,054 parking lots and is the largest solar scheme at a single location in Oman spanning an area of 37,830 sq m.