The Petroleum Development Oman (PDO), an oil and gas production company, has tendered a 100 MW grid-connected solar photovoltaic (PV) project to be developed in Amin. The bid-submission deadline is January 31, 2018.
To ensure a risk allocation that optimizes the cost of capital, the grid-connected solar PV project will be structured in line with Oman’s Independent Power Producer (IPP) model.
The 100 MW grid-connected solar PV project will be developed on ‘build own operate and transfer’ (BOOT) basis. The scope of work includes the design, construction, ownership, financing, operation, and maintenance of the 100 MW grid-connected solar PV project.
The PDO will enter a Power Purchase Agreement (PPA) with the successful bidder for a period of 23 years. It expects to award the contract for project construction by June 2018.
The grid-connected solar PV project will be privately financed through a combination of sponsor and third-party equity as well as non/limited recourse debt.
To meet its increasing energy demands, Oman has, of late, turned towards harnessing the inexhaustible solar energy.
Image Credit: Wikimedia Commons
Saumy is a senior staff reporter with MercomIndia.com covering business and energy news since 2016. Prior to Mercom, Saumy was a copy editor at Thomson Reuters. Saumy earned his Bachelors Degree in Journalism & Mass Communication from the Manipal Institute of Communication at Manipal University. More articles from Saumy Prateek.