Singapore’s energy and urban development company Sembcorp Industries (Sembcorp) has secured a deal to build, own and operate a 500-megawatt solar plant in Manah, Sultanate of Oman.
The Manah Solar II Independent Power Project (IPP) is expected to be operational by 2025 and will be backed by a 20-year power purchase agreement with Oman Power and Water Procurement Company (OPWP).
The deal was awarded by OPWP to Sembcorp through an 80%-owned joint venture to be set up by its wholly-owned subsidiary Sembcorp Utilities with Jinko Power Technology.
Sembcorp says the solar plant will augment the company’s presence and track record in Oman’s power and water desalination sector. The Salalah Independent Water and Power Plant, one of the most energy-efficient power and water plants in the Dhofar region in the Sultanate of Oman, is 40%-owned by the Singaporean firm.
“The Manah Solar II IPP will mark Sembcorp’s first renewables project in the Middle East. To be constructed in the Sultanate of Oman, the project will leverage our strong network and presence for over 10 years in the country built through Salalah Independent Water and Power Plant,” says Andy Koss, chief executive office for the United Kingdom and the Middle East, Sembcorp Industries. “We are delighted to be awarded this project and look forward to working with Jinko Power to support the global energy transition.”
According to Sembcorp, the project is expected to be financed through a mix of internal cash resources and external bank borrowings. It is not expected to have a material impact on the earnings per share, net asset value per share and leverage of Sembcorp for the financial year ending December 31 2023.
Headquartered in Singapore, and listed on the main board of the Singapore Exchange, Sembcorp is one of Singapore’s largest homegrown renewable energy players and has an energy portfolio of 16.7 gigawatts, with 9.8GW of renewable energy capacity comprising solar, wind and energy storage globally.