Petroleum Development Oman (PDO) has invited Expressions of Interest (EoI) from companies to take part in a competitive tender for a 100 MW utility scale solar photovoltaic project in southern Oman, a report said.
The project is set to be majority government-owned PDO’s first renewable energy venture being developed as an Independent Power Producer (IPP), reported Oman Observer.
Electricity output from the plant will be lifted by PDO as the sole offtaker under a 23-year power purchase agreement (PPA) with the developer, it added.
The successful bidder will be awarded a long-term concession to design, construct, finance, operate and maintain the solar plant for the duration of the PPA term.
“It is envisaged that the Project will be privately financed through a combination of sponsor and third party equity and non / limited recourse debt under a similar structure to previous IPPs. It is intended that PDO will sign a direct agreement with the Project’s lenders setting out financial commitments,” the report said, citing a PDO statement.
PDO is likely to float a Request for Proposals (RfP) before the end of this month, while the award of a concession is targeted for June, the report said.
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