ACWA Power, GIC and AEPCo sign solar power project deal

Business Bureau, Gulf Today

A consortium of ACWA Power, Gulf Investment Corporation (GIC), and Alternative Energy Projects Co. (AEPCo) has executed the project agreements for the development of Ibri-2 Independent Power Producer (IPP) with the Oman Power and Water Procurement Company (OPWP). The project, to be developed on a BOO (build, own, operate) basis, includes the development, finance, construction, and operation of the 500 MWac solar PV power plant. The project will be located around 300km west of Muscat, and will contribute towards increasing power supplies in the Sultanate.

OPWP awarded the project to the winning consortium following an international competitive tendering process that included 12 qualified bidders. The winning consortium submitted the best economic tariff for the electricity that will be sold to OPWP. ACWA Power is the lead investor in the project with a 50 per cent stake, whereas GIC will have a 40 per cent stake and AEPC will control the remaining 10 per cent.

The project will be the first utility scale solar power project in Oman and will utilise Solar PV technology to yield 500MWac of power. The innovative design of the plant will ensure the highest efficiency, reliability and availability standards for any comparable plant in the world. At peak generation capacity, the plant output will be enough to supply an estimated 33,000 homes with electricity and will offset 340,000 tonnes of carbon dioxide emissions a year.

Commenting on the award, Paddy Padmanathan, President and CEO of ACWA Power, said: “We applaud the government of Oman for their ambitions related to renewable energy and diversifying the country’s power mix as evidenced by the scope of this project and its future potential in supporting the Sultanates economy. It is an honour to have been trusted with the delivery and operation of the Ibri II Solar PV IPP based on our reputation for winning world-record power projects with the best tariffs as well as our expanding renewable portfolio and we look forward to collaborating with our partners and Omani stakeholders to successfully complete this project.”

“Our winning bid for Ibri II Solar PV IPP is a continuation of the progress ACWA Power is making in developing and securing our clean energy footprint in the region,” said Rajit Nanda, Chief Investment Officer of ACWA Power. “Being awarded this project is a sign of intent which reaffirms our steadfast commitment to renewable energy and also to the Sultanate of Oman.”

Meshary Al-Judaimi, Division Head of Financial Services & Utilities of GIC stated: “GIC is a successful co-developer of utilities projects in the GCC and with this project we are proud to develop alternative and clean utility-scale solar energy project in the GCC,” Al-Judaimi further added: “Wining Ibri-II project reinforces GIC role in supporting private sector participation in the development of the GCC economies.”

Dr. Hassan Qassem from APECo added: “this project demonstrates the ability of GCC companies to compete with their international counterparts to provide competitive solution in renewable and sustainable energy. This project also demonstrated the Sultanate of Oman’s long term vision in sourcing renewable energy and encouraging investment in the sector.”

ACWA Power is a developer, investor and operator of a portfolio of power generation and desalinated water production plants currently with presence in 11 countries including in the Middle East and North Africa, Southern Africa and South East Asia regions. ACWA Power employs over 3,500 people with about 60% local employment. ACWA Power’s portfolio, with an investment value in excess of $45 billion, can generate 30+ GW of power and produce 4.8 million m3 /day of desalinated water to be mostly delivered on a bulk basis to state utilities and industrial majors on long term off-take contracts under Public-Private-Partnership, Concession and Utility Services Outsourcing models.

ACWA Power, registered and head-quartered in the Kingdom of Saudi Arabia, is owned by eight Saudi conglomerates, Sanabil Direct Investment Company (owned by the Public Investment Fund of Saudi Arabia), the Saudi Public Pensions Agency and the International Finance Corporation (a member of the World Bank Group). ACWA Power pursues a mission to reliably deliver electricity and desalinated water at a low cost, thereby contributing to the social and economic development of the communities and countries it invests in and serves.

ACWA Power strives to achieve success by adhering to the values of Safety, People and Performance in operating its business.

GIC was established in 1983 and is equally owned by the six member states of the Gulf Cooperation Council. GIC is a principal investor that supports the development of private enterprise and economic growth in the region. As at end 2018, GIC had total assets of about $3.5 billion and shareholders’ equity of about $2.6 billion.