Oman tenders $1.035bn solar mandate as Vision 2040 absorbs 1,500MW capacity

Oman's Nama Power and Water Procurement Company has launched a request for qualification for the Adam Solar Independent Power Project and Sinaw Solar Independent Power Project, representing a combined generation capacity of 1,500 megawatts and expected investments of approximately 398 million Omani rials ($1.035 billion). Interested parties can purchase the RFQ documents until 7 July 2026, while statements of qualification must be submitted by 27 July 2026. The RFQ is open to project developers and does not apply to EPC contractors, a structural constraint that narrows the competitive field to entities capable of marshalling development, financing, construction, ownership, operation, and maintenance mandates under a single consortium.

The Adam Solar IPP will be located in Wilayat Adam in Dakhiliyah Governorate and comprise a 1,000 MW solar photovoltaic plant integrated with a battery energy storage system, with a project cost estimated at OMR 287 million ($746 million). PWP estimates the project will reduce carbon dioxide emissions by more than 1.03 million tonnes annually and generate around one million International Renewable Energy Certificates per year. The inclusion of BESS represents a critical evolution in Oman's procurement typology — Adam Solar IPP will be among the first large-scale solar projects in the country to incorporate battery energy storage, enhancing grid flexibility, supporting system stability, and enabling greater integration of renewable energy resources.

The Sinaw Solar IPP will be located in Wilayat Sinaw in North Al Sharqiyah Governorate and will comprise a 500MW solar PV plant estimated to cost OMR 111 million ($288 million) and occupy a site of approximately 5 million square metres. The plant is expected to reduce carbon dioxide emissions by approximately 566,600 tonnes per year while generating 500,000 I-RECs annually. Together, the projects are expected to reduce carbon emissions by nearly 1.6 million tonnes annually and generate 1.5 million I-RECs each year, establishing a verifiable environmental-attribute framework that aligns with corporate net-zero procurement mandates across Gulf industrial precincts.

The projects represent the latest additions to Nama PWP's renewable energy development programme and have been designated as Projects Number 11 and 12 under the company's renewable energy roadmap. According to PWP, the projects form part of the Sultanate's strategy to expand renewable energy generation, strengthen energy security and support decarbonisation objectives under Oman Vision 2040. Oman aims to raise the share of renewable energy in its electricity generation mix to 30 per cent by 2030, a target that necessitates rapid capacity absorption across utility-scale solar and wind typologies.

The Adam and Sinaw tenders arrive as Oman accelerates a broader 2,500MW solar programme. Nama PWP said it intends to issue Requests for Proposals for four solar IPPs: Al Kamil II Solar IPP, Dhofar Solar IPP, Sinaw Solar IPP and Adam Solar IPP, forming part of a solar programme with combined generation capacity of approximately 2,500 megawatts. Selected projects will incorporate battery energy storage systems to enhance renewable energy dispatchability and grid stability, a design mandate that reflects the Sultanate's recognition of intermittency risk as renewable penetration approaches the 30 per cent threshold.

The procurement sits within a wider energy-transition architecture. Among the largest planned procurements in 2026 is a large-scale round-the-clock renewable energy project integrating solar PV, wind generation and BESS, targeting around 1,000 MW of dispatchable renewable capacity with an annual capacity factor exceeding 70 percent, with project award planned during 2026. That RTC archetype — combining solar, wind, and storage to deliver baseload-equivalent reliability — represents a structural shift from standalone PV deployments toward hybrid systems capable of displacing gas-fired generation on a like-for-like basis.

Ahmed bin Salim Al Abri, Chief Executive Officer of Nama Power and Water Procurement, said the projects demonstrate the company's commitment to delivering cost-effective, sustainable, and reliable power generation solutions while creating opportunities for private-sector participation and attracting foreign investment into Oman's growing renewable energy sector. The emphasis on foreign capital is deliberate: Oman's fiscal compression post-2020 has necessitated a pivot toward private-sector financing for infrastructure, with independent power projects serving as the primary vehicle for capacity addition without sovereign balance-sheet exposure.

In April, Zawya Projects had reported that Oman recorded the fastest renewable energy growth rates in the GCC in 2025, more than doubling installed capacity on the back of large-scale solar PV deployments, according to data from International Renewable Energy Agency. That acceleration reflects the commissioning of projects including the 500MW Manah I Solar IPP and the 500MW Ibri III Solar IPP, the latter marking Oman's first utility scale solar facility to integrate a battery energy storage system, combining a 500 megawatt photovoltaic plant with a 100 megawatt hour battery.

The Adam and Sinaw RFQ follows a well-established procurement cadence. The RFQ marks the first stage of the competitive tendering process, through which qualified developers and consortiums will be shortlisted before being invited to participate in the subsequent Request for Proposal phase. Historical precedent suggests tariff compression will continue: Oman's solar IPPs have consistently delivered sub-regional tariff benchmarks, driven by competitive tension among international consortia and declining PV module costs. The addition of BESS to the Adam project introduces a new pricing variable, with storage economics subject to lithium-ion cost curves and cycle-life assumptions that remain in flux.

For UHNW investors, the Adam and Sinaw tenders crystallise several thesis elements. First, the Sultanate's commitment to a 30 per cent renewable mandate by 2030 creates a visible, time-bound capacity pipeline that de-risks long-term power-sector exposure. Second, the integration of BESS establishes a template for dispatchable renewable projects that can command premium offtake terms relative to intermittent solar. Third, the I-REC generation framework provides a secondary revenue stream as regional corporates face mounting pressure to decarbonise supply chains. Fourth, Nama PWP's role as sole offtaker — backed by sovereign credit — mitigates counterparty risk in a jurisdiction where private-sector balance sheets remain shallow.

The projects also signal Oman's positioning within the Gulf's energy-transition hierarchy. While the UAE has pursued gigawatt-scale solar and nuclear baseload, and Saudi Arabia has mobilised Vision 2030 capital toward NEOM and giga-projects, Oman has adopted a more calibrated approach: incremental capacity additions, private-sector financing, and technology integration (BESS, RTC hybrids) that prioritise grid stability over headline capacity figures. That pragmatism reflects fiscal realities — Oman lacks the sovereign wealth buffers of its neighbours — but also creates a differentiated investment proposition for developers seeking repeatable, bankable project structures rather than one-off mega-tenders.