en.Wedoany.com Reported - On August 13, the Jaalan Bani Bu Ali wind independent power project in Oman, developed by a consortium led by France's EDF power solutions with participation from Al Khadra Partners and OQ Alternative Energy, reached financial close, laying the funding foundation for the project to enter the full construction and equipment installation phase.
The JBB wind power project is located in the South Al Sharqiyah Governorate in southern Oman, covering approximately 10.7 square kilometers and situated about 440 kilometers from Duqm Port. The project plans an installed capacity of 120 megawatts, featuring 16 onshore wind turbines with a single-unit capacity of 7.7 megawatts, making it one of the larger onshore wind power projects in Oman at this stage.
The project development consortium has signed a 20-year power purchase agreement with Nama Power and Water Procurement Company. The consortium is responsible for project financing, construction, ownership, and operation, with the electricity generated to be connected to Oman's national grid. Commercial operation is scheduled for the third quarter of 2027.
The Omani government announced a project investment of approximately 50.86 million Omani rials, equivalent to around $132 million, at the stage of signing the power purchase agreement. The project is expected to generate approximately 352,400 megawatt-hours of electricity annually, meeting the yearly electricity needs of over 13,500 Omani households, reducing carbon dioxide emissions by about 270,000 tons per year, and saving approximately 67 million cubic meters of natural gas.
Reaching financial close is another substantive milestone for the project following the signing of the power purchase agreement, signifying that the project's long-term power sales arrangements and funding conditions have been secured. This announcement did not disclose the financing scale, lending institutions, financing tenor, or debt-to-equity ratio. The previously announced 50.86 million Omani rials represents the investment scale and cannot be directly equated with the loan amount.
The JBB project is the first wind power project advanced by EDF power solutions in Oman. OQ Alternative Energy will provide local energy project development capabilities, while Al Khadra Partners, leveraging the Hind Bahwan Group, will participate in local project implementation. The construction phase is expected to unlock demand for civil works, transportation, installation, engineering services, and operations talent training through Oman's In-Country Value program.
Once operational, the project will support Oman in reducing natural gas consumption for power generation. Oman plans to increase the share of renewable energy in its power mix to at least 30% by 2030, and the JBB project, together with planned wind projects such as Dhofar 2 and Sadah, will form part of the country's new round of onshore wind power construction portfolio.
