Largest solar photovoltaic project underway in the Sultanate of Oman
The Manah 1 project, in line with the “Oman Vision 2040” will increase power generation capacity through renewable independent power projects.
From an energy perspective, the Sultanate of Oman is probably better known as an oil and gas developer, but it also competitive in the solar and wind energy space, having recognised the need to diversify its economy and reduce its carbon footprint. Innovation and sustainability are expected to be Oman’s new engine of growth. “Oman Vision 2040”, the national reference for economic and social planning for the period 2021-2040, was launched in early January 2021 by the Sultanate of Oman, encompassing a National Energy Strategy setting out the path towards an environmentally friendly energy mix, with an increasing share dedicated to renewable energy.
The Sultanate of Oman has embarked on a number of projects to achieve this goal, one of them being the Manah 1 solar photovoltaic project implemented by the Wadi Noor Solar Power Company (WNSPC), a special purpose vehicle established by a consortium comprising EDF Renewables and Korea West Power Company (KOWEPO).
Manah 1 project is underpinned by the strong rationale for Oman to expand its electricity generation capacities through renewable independent power projects (“IPPs”) with the objective to derive at least 20% of electricity consumption from renewables by 2030, and 35% to 39% in 2040, in a context where the demand for electricity is increasing due to Oman's continuous growth.
Located 170 kilometres south of the city of Muscat, this 500 megawatt (MW) solar project will set a new standard in the Sultanate of Oman's solar power market aligned with Omani climate goals.
Once operational, the Manah 1 project is expected to power 50,000 Omani homes and offset over 700,000 metric tons of CO2 annually. The plant would span over approximately 7.8 square kilometres in the Al Dakhiliyah Governorate, will deploy over 1 million bifacial PV modules mounted on a single axis tracker system and will be operational in 2025.
Societe Generale acted as MLA, Lender, Hedge Provider, Hedge Coordinator, Documentation Bank, ECA Coordinator and ECA Agent on the Manah 1 project to support the Sultanate of Oman’s energy transition plan. It will also enable Societe Generale Group to consolidate its position in the Middle East region and assert itself as the bank for energy transition financing, advisory and investment with a commitment to positive impact.
We are proud to acknowledge the invaluable support of lenders, composed of Societe Generale, Kexim, and Bank Muscat, in financing and closing the Manah Project, a 500 MW PV Solar Plant located in Manah, in the Sultanate of Oman. Societe Generale, in particular, has been a strong and trusted partner of EDF Renewables across multiple projects. Their continued support and collaboration highlight their unwavering commitment to sustainable development and decarbonization. Together, we are paving the way for a greener future and setting a benchmark for sustainable investments in the energy sector
We are very pleased to announce the successful financial close of the Manah 1 solar PV project, the first Korean company to be awarded the project in the Sultanate of Oman. This was thanks to the strong support of Societe Generale, KEXIM and Bank Muscat.
This landmark project financing for two important clients of the Bank was made possible in particular thanks to the strong support from KEXIM, with which Societe Generale has a close and longstanding relationship.
We are extremely honoured to accompany our key clients on this transaction. The financing of Manah 1 solar PV plant demonstrates Societe Generale’s support for Oman’s Vision 2040 objectives and climate goals. We will continue working with the countries in the Gulf Cooperation Council to drive their clean energy transition by providing both long-term financings and financial advisory for the development of their projects.