Sembcorp Industries (Sembcorp) announced the construction of a 500 MW solar power plant in the Manah region, Sultanate of Oman. The plant will be built, owned and operated by a joint venture between Sembcorp Utilities, a wholly owned subsidiary of Sembcorp, and Jinko Power Technology (Jinko Power), which is 80% owned by the two companies.
A promising project
The project was awarded by Oman Power and Water Procurement Company (OPWP) and will be supported by a 20-year power purchase agreement with OPWP. The solar plant is expected to be operational by 2025 and will complement Sembcorp’s already established capabilities and track record in the region. Sembcorp already owns 40% of the Salalah Independent Water and Power Plant, one of the most energy efficient plants in the Dhofar region of Oman.
A first for Sembcorp in the region
Andy Koss, CEO of Sembcorp Industries for the UK and Middle East, said, “The Manah Solar II IPP project will mark Sembcorp’s first renewable energy project in the Middle East. Built in the Sultanate of Oman, the project will benefit from our strong network and over 10 years of presence in the country through the Salalah Independent Water and Power Plant. We are delighted to have won this project and look forward to working with Jinko Power to support the global energy transition.”
Planned funding
The project is expected to be financed through a combination of internal cash resources and external bank loans. It is not expected to have a material impact on Sembcorp’s earnings per share, net asset value per share and leverage for the year ending December 31, 2023.
An investment in the future
Building the 500MW solar plant represents a significant investment for Sembcorp, but the company believes it is a wise investment in the future of renewable energy. The demand for clean energy continues to grow worldwide, and Sembcorp is well positioned to meet that demand by expanding into the renewable energy market.
