Petroleum Development Oman (PDO) signed agreements yesterday with the partnership of OQ Alternative Energy (a subsidiary of OQ Group) and TotalEnergies to develop three independent renewable energy projects to support the company’s transition to Net-Zero.

The signing ceremony took place in the presence of Eng Salim bin Nasser al Aufi, Minister of Energy and Minerals (MoEM). Signing on behalf of their respective organisations were: Eng Aflah bin Said al Hadhrami, Managing Director of Petroleum Development Oman; Najla bint Zuhair al Jamaliyah, CEO of OQ Alternative Energy; and Olivier Jouny, Senior Vice President of Renewables at TotalEnergies.

As part of the agreements, a 100-megawatt solar photovoltaic plant, dubbed the North Solar project, will be developed in the north of PDO’s concession area, while two wind-based energy projects, Riyah-1 and Riyah-2’ - each with a capacity of 100 MW – will be built in the south of the concession area.

Al Aufi, Minister of Energy and Minerals, lauded PDO’s leadership in advancing the energy transition, stating: "The Sultanate of Oman has achieved significant strides in embedding sustainability principles to secure a prosperous future. PDO’s commitment and collaboration with key energy sector partners reflect our collective efforts to achieve the nation’s visions and goals. Today’s event highlights the strength of our national partnership in reducing carbon emissions and advancing the transition to clean energy sources, aligning with global trends toward a more sustainable future. This project also reinforces the trust placed in OQ Alternative Energy as a leading developer for this and future initiatives."

Dr Aflah al Hadhrami, Managing Director of PDO, stated: “PDO’s journey towards sustainability was firmly established with previous groundbreaking initiatives, including the Amin Solar IPP Power Plant and the Rima Water Treatment Project. 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.”

Najla Zuhair al Jamaliyah, Chief Executive of OQ Alternative Energy added: “Today, we witness a significant milestone in OQAE's journey as we step forward as the appointed National Champion for Clean Energy in Oman. Energy transition is a significant journey for everyone, but we are actively engaged in planning this journey for Oman, with over 7 GW of projects within our project pipeline. At OQ, we focus on sustainable growth in Oman's energy sector and foster partnerships for a smooth energy transition. Our vision is to maximise the value of Oman’s energy resources while ensuring a sustainable future through innovative solutions that meet both current and future energy needs.”

The North Solar IPP, spanning an area of 3 km², will generate 100 MWac of clean, renewable energy. Construction of the North Solar project is scheduled to begin in early 2025 and commercial operation scheduled to be in Q2 2026, represents a major step in PDO's renewable energy journey.

The electricity will be delivered through a long-term power purchase agreement with Petroleum Development Oman, the Sultanate's main exploration and production company. By harnessing the sun's power, the project will reduce CO2 emissions by over 220,000 tons annually and save millions of cubic metres of natural gas each year.

The Riyah-1 and Riyah-2 wind farms, located in Amin and Nimr West, will collectively produce 200 MW of clean energy, revolutionising Oman’s energy landscape. These projects, covering an area equivalent to 1870 football pitches, will be commercially operational by Q4 2026. TotalEnergies and Oqae will take a 49% and 51% stake in each of the three projects.

Last week, Oman launched a tender to select developers for a 280 MW solar project. Interested developers have until February 3 to submit their statement of qualification.

The Omani government has set a target of adding around 4 GW of renewables capacity by 2030. According to the International Renewable Energy Agency (IRENA), Oman had 672 MW of cumulative installed solar capacity at the end of 2023.