Masdar-led Ibri III Solar And Battery Storage Project Reaches Financial Close In Oman

Abu Dhabi Future Energy Company PJSC – Masdar and consortium partners have closed financing for the Ibri III Solar Independent Power Project, the first utility-scale solar and battery storage plant in Oman. The project for Nama Power and Water Procurement will cost around US$300 million and is designed to back Oman Vision 2040 energy diversification plans.

Funding facilities for the Ibri III Solar Independent Power Project have been arranged with Natixis Corporate & Investment Banking and First Abu Dhabi Bank. These lenders will provide a major share of the project’s total capital requirements. Securing debt from international banks signals confidence in the long-term power offtake framework agreed with Nama Power and Water Procurement.

The Ibri III Solar Independent Power Project is being developed by Masdar, Al Khadra Partners, Korea Midland Power Co. Ltd (KOMIPO), and OQ Alternative Energy. The partners will handle the design, construction, ownership, financing, operation, and maintenance of the solar plant and storage system. A power purchase agreement with Nama was signed in September, defining future electricity sales conditions.

The Ibri III Solar Independent Power Project combines a photovoltaic plant with battery storage to provide grid electricity and support system stability. Key technical and economic indicators are summarised below.

The Ibri III Solar Independent Power Project will use a 500 MW photovoltaic plant linked with a 100 MWh battery energy storage system. Output is expected to meet electricity demand for about 33,000 homes and avoid nearly 505,000 tonnes of carbon dioxide a year. This supports Oman’s target to obtain 30 percent of power from renewables by 2030.

Masdar views the Ibri III Solar Independent Power Project as part of Oman’s wider energy transition agenda. Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, said, "We thank our lenders and partners for enabling us to reach this significant milestone in the development of the Ibri III project, which highlights Masdar’s commitment to helping Oman achieve its energy transformation goals. We see great potential for battery energy storage to expand renewable energy deployment, and we look forward to leveraging our expertise in BESS and other advanced technologies to deliver clean, secure power for the Sultanate."

The Ibri III Solar Independent Power Project combines independent power producer financing, a long-term power purchase agreement with Nama, and integrated battery storage. Once built and operated by the Masdar-led consortium, the plant is expected to support grid reliability, extend renewable generation hours, and align with Oman Vision 2040 goals for a more diverse electricity mix.

With inputs from WAM