Sembcorp Industries (Sembcorp), through an 80%-owned joint venture to be set up by its wholly owned subsidiary Sembcorp Utilities with Jinko Power Technology (Jinko Power), received an award by Oman Power and Water Procurement Company (OPWP) to build, own and operate the Manah Solar II Independent Power Project (IPP) in Manah, Oman.
The 500 MW solar plant is expected to be operational by 2025 and will be backed by a 20-year power purchase agreement with OPWP.
This project will complement Sembcorp’s existing capabilities and track record in the region. The Salalah Independent Water and Power Plant, one of the most energy-efficient power and water plants in the Dhofar region in Oman, is 40% owned by Sembcorp.
Sembcorp has already made its presence in Oman and has developed financed, built, owns and operates the Salalah Independent Water and Power Plant in Oman. The power plant is the largest and most energy-efficient power and water plant in the Dhofar region.
First Solar Project
Andy Koss, CEO of UK & Middle East, Sembcorp Industries, said that the Manah Solar II IPP will mark Sembcorp’s first renewables project in the Middle East.
“The project will leverage our strong network and presence for over 10 years in the country built through Salalah Independent Water and Power Plant. We are delighted to be awarded this project and look forward to working with Jinko Power to support the global energy transition,” Koss said.
This 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 31 December 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 GW, with 9.8 GW of renewable energy capacity comprising solar, wind and energy storage globally.
In December 2021, Sembcorp Energy UK unveiled plans to develop a 360MW battery energy storage system at the Wilton International industrial site in Teesside. The battery project is claimed to be Europe’s largest and will help the UK meet its net-zero goals.
It will be built in tranches on land already owned by Sembcorp with established connectivity, allowing batteries to be installed quickly.