Nama Power and Water Procurement Company (Nama PWP), Oman signed a 20-year Power Purchase Agreement (PPA) with Sembcorp Utilities (a wholly-owned subsidiary of Sembcorp Industries (Sembcorp)) and OQ Alternative Energy (OQAE) to develop the Dhofar II Wind Power Project in the Sultanate of Oman.
Under the PPA, the joint venture to be established between Sembcorp and OQAE will build, own and operate the 125MW wind farm, with power output to be supplied to Nama PWP upon project completion. The project is expected to be ready for commercial operation in Q3 2027.
The PPA signing ceremony was attended by Mr. Ahmed bin Salem Al Abri, CEO of Nama PWP, Mr. Vipul Tuli, President & CEO, Renewables, West, Sembcorp, and Eng. Ghalib bin Saeed Al Maamari, Acting CEO of OQAE. The signing was witnessed by H.E. Eng. Salim bin Nasser Al Aufi, Minister of Energy and Minerals.
On this occasion, H.E. Eng. Salim bin Nasser Al Aufi, Minister of Energy and Minerals, stated: “We are pleased to witness the signing of the Dhofar II Wind Power Project PPA, which represents a significant step in Oman’s journey towards renewable energy. This vital project spans an area of approximately 12 million square metres and will have a production capacity of 125MW, reflecting our steadfast commitment to achieving Oman Vision 2040 targets and advancing confidently towards net-zero emissions by 2050.”
His Excellency added: “The investment value of around OMR43 million in this project demonstrates the confidence of partners and investors in Sultanate of Oman’s investment climate and highlights the growing importance of the renewable energy sector in the Sultanate of Oman. The project will reduce carbon dioxide emissions by approximately 158,000 tonnes annually while providing clean electricity to more than 18,000 homes.”
His Excellency concluded: “This project embodies the Sultanate of Oman’s ambitious vision to build a modern, balanced energy system that combines efficiency and sustainability, founded on our natural resources and national capabilities. Investing in renewable energy is not merely an option; it is a cornerstone of a more prosperous and stable future. The signing of the Dhofar II Wind Power Project confirms Sultanate of Oman’s commitment to advancing its transition towards a low-carbon economy and strengthening its position as a regional hub for clean energy capable of attracting strategic investments and supporting sustainable development for the benefit of the Omani environment, economy, and society.”
Mr. Ahmed bin Salim Al Abri, CEO of Nama Power and Water Procurement, emphasised that the Dhofar II Wind Power Project marks a significant milestone in Sultanate of Oman’s transition to clean energy, with an annual generation capacity of approximately 396,754MWh. He explained: “The project will free up around 76 million cubic metres of natural gas annually, reflecting Nama Power and Water Procurement’s commitment to supporting the Sultanate of Oman’s energy diversification pillar and target and ensuring the sustainability of the electricity sector. It will also enhance local content creation by offering greater opportunities for SMEs, contributing to national economic growth through the In-Country Value (ICV) programme by allocating a portion of contracted works to local Omani companies to stimulate their growth, create jobs in the local market, reduce import dependency, and promote development in Dhofar Governorate.”
Mr. Al Abri added: “Nama Power and Water Procurement is proud to partner with both local and international companies in delivering this strategic project, which represents a leading model of public-private collaboration in sustainable energy.”
Mr. Vipul Tuli, President & CEO, Renewables, West, Sembcorp, said: “Sembcorp is proud to partner with Nama PWP on the Dhofar II Wind Power Project. Building on our experience in developing and operating large-scale solar and gas-fired power projects in Manah and Salalah, and elsewhere in the region, this new project further strengthens our role as a trusted partner in advancing the region’s energy transformation. With over 1.1GW of energy assets in Oman, Sembcorp looks forward to working closely with Nama PWP and OQAE to deliver this project successfully and support Oman’s vision for a cleaner, more resilient energy system.”
Eng. Abdullah bin Rashid Al Sawafi, Chief Energy Transition Officer, Nama Power and Water Procurement, noted that the company continues to strengthen its role as a key driver of Sultanate of Oman’s national energy framework by adopting an advanced public-private partnership model to meet rising electricity demand and ensure security and sustainability of supply.
He highlighted that the Dhofar II Wind Power Project embodies this forward-looking approach, comprising 20 Windey WD200 turbines, each with a 6.25MW capacity, for a total installed capacity of 125MW. Each turbine stands at 215 metres high and connects to the national electricity transmission grid via a 400kV substation.
Eng. Al Sawafi added: “This project is a significant addition to Sultanate of Oman’s renewable energy transition. Over the past 15 years, the company has contracted 26 electricity and water desalination plants, attracting investments exceeding US$11 billion, with plans to attract a further US$5 billion over the next five years, mainly in renewable energy and storage technologies.”
Eng. Al Sawafi affirmed that the company aims to add 9GW of renewable energy capacity by 2030, representing 60% of total contracted capacity, in line with Oman Vision 2040 and the national target of 30% clean energy generation, strengthening Sultanate of Oman’s position as a regional hub for sustainable energy.
Eng. Ghalib bin Saeed Al Maamari, Acting CEO of OQAE, stated: “The Dhofar II Wind Power Project represents another major step forward in OQ Alternative Energy’s mission to accelerate Oman’s clean energy transition and reinforce the Sultanate’s position as a regional leader in renewables. Through this project, we are not only helping reduce carbon emissions and free up valuable natural gas resources but also creating opportunities for local businesses and talent to participate in the growth of the renewable energy sector. This is how we translate Oman Vision 2040 and our Net Zero 2050 commitment into real impact on the ground—by investing in projects that power progress, sustainability, and prosperity for generations to come.”
