Singapore's Sembcorp Utilities and local firm OQ Alternative Energy (OQAE) have won a contract to develop the 125MW Dhofar 2 wind independent power project in Oman.

The contract was awarded by state offtaker Nama Power & Water Procurement Company (Nama PWP) under a 20-year power purchase agreement (PPA).

Under the PPA, Sembcorp and OQAE will form a joint venture to build, own and operate the wind farm, which will supply power to Nama PWP once operational.

The equity split will give Sembcorp 75% and OQAE 25%, a source close to the project told MEED.

Nama PWP said that it will allocate a portion of contracted works for the Dhofar 2 project to Omani small and medium-sized enterprises under its in-country value programme.

The facility, valued at about OR43m ($112m), will be located on a 12-square-kilometre site in Dhofar Governorate.

The project comprises 20 Windey WD200 turbines, each with a 6.25MW capacity. Each turbine stands 215 metres tall and will be connected to the national grid via a 400kV substation. The project is expected to begin commercial operations in the third quarter of 2027.

The development will provide clean electricity to more than 18,000 homes and will cut carbon dioxide emissions by about 158,000 tonnes a year.

It is also expected to generate about 396,754 megawatt-hours and free up around 76 million cubic metres of natural gas annually.

Sembcorp has over 1.1GW of energy assets in Oman. In September, the firm signed a new 10-year power and water purchase agreement with Nama PWP for its Salalah independent water and power plant.

According to Nama PWP, the offtaker has contracted 26 water and desalination plants, exceeding $11bn in investment, over the past 15 years.

Chief energy transition officer at Nama PWP, Abdullah Bin Rashid Al-Sawafi, said the company "plans to attract a further $5bn over the next five years, mainly in renewable energy and storage technologies". This includes an extra 9GW of renewable energy capacity by 2030, representing 60% of total contracted capacity. Oman aims to have 30% of its electricity generation from renewable sources by the same year.