TotalEnergies and OQAE to Develop RE Plants in Oman

In line with its multi-energy strategy, Oman’s renewable energy leader OQ Alternative Energy has signed an agreement with French energy major TotalEnergies to develop 300 MW of renewable energy projects in the country.

The electricity will be delivered through long-term Power Purchase Agreements (PPA) to Petroleum Development Oman (PDO), the leading exploration and production company in the Sultanate, TotalEnergies said on Wednesday.

TotalEnergies and OQAE, which will be owning 49% and 51% shares respectively, will lead in realising three renewable projects such as 100 MW North Solar, located in Saih Nihaydah in northern Oman, and two wind projects – Riyah-1 and Riyah-2 – each with a capacity of 100 MW located in Amin and West Nimr fields in southern Oman.

The construction will start in early 2025, and the electricity production in late 2026. These solar and wind projects will generate over 1.4 TWh of renewable electricity annually, The French company said.

Olivier Jouny, Senior Vice President Renewables at TotalEnergies, said that following their recent successes in Oman, notably with the launch of the Marsa LNG project in April this year, they have taken a new step in the deployment of their company’s integrated multi-energy strategy in the Gulf nation.

“Together with our partner OQAE, we are eager to start the construction of these three projects which will provide long-term renewable electricity to PDO while supporting the Sultanate in its energy transition,” Jouny added.

Aligns with Oman’s NZE Target

PDO’s Managing Director Dr Aflah Al Hadhrami said that these agreements further reinforced their steadfast commitment to achieving Net Zero emissions by 2050 in line with the objectives of Oman Vision 2040, mainly the diversification of energy sources to ensure sustainable energy security. PDO’s journey towards sustainability was firmly established with previous ground-breaking initiatives, including the Amin Solar IPP Power Plant and the Rima Water Treatment Project.

He also said that these projects, alongside the ones signed today, continue to reshape Oman’s energy landscape by blending technological innovation with environmental stewardship.

“They also support our aim of sourcing 30% of our power capacity from renewables by 2026, reflecting our dedication to a cleaner, sustainable future,” Dr Al Hadhrami added.

OQAE Chief Executive Najla Zuhair Al Jamali said that in partnership with PDO and TotalEnergies, OQAE is proud to advance Oman’s transition toward sustainable energy. As an energy transition enabler, they were delighted to lead the development of these projects supporting PDO to achieve their decarbonisation plans.

“This significant milestone underscores the expertise and dedication of all stakeholders involved. As the national champion for clean energy in Oman, OQAE is committed to supporting the nation’s economic growth by developing innovative clean energy and low-carbon projects. With a focus on environmental stewardship and long-term prosperity, OQAE ensures the delivery of sustainable solutions to meet Oman’s evolving industrial energy needs,” she added.