The French company TotalEnergies, in partnership with OQ Alternative Energy, has announced the launch of three renewable electricity projects in Oman. These projects include two wind farms and a solar power plant, with a combined capacity of 300 megawatts (MW). These initiatives aim to diversify the Sultanate’s energy capabilities while supporting the commitments of both companies.
Location and project timeline
The solar project, named North Solar, will be located in the Saih Nihaydah region in northern Oman. The two wind farms, Riyah-1 and Riyah-2, will be situated in the oil fields of Amin and West Nimr in the southern part of the country. Construction is set to begin in 2025, with operations expected to start by 2026. Once operational, these facilities will generate 1.4 terawatt-hours (TWh) of electricity annually.
Financing structure and partnership
OQ Alternative Energy, a subsidiary of the Omani energy group OQ, holds a 51% stake in the project, while TotalEnergies owns 49%. The electricity produced will be supplied through long-term power purchase agreements (PPA) with Petroleum Development Oman (PDO), a major player in exploration and production in the Sultanate.
TotalEnergies’ strategic objectives
These projects are part of TotalEnergies’ global strategy to increase its renewable electricity production capacity. By 2024, the group had already achieved 27 gigawatts (GW) of gross installed capacity, up from 22 GW in 2023. The company aims to reach 35 GW by 2025 and 100 GW by 2030.
Patrick Pouyanné, CEO of TotalEnergies, recently announced that the group would allocate $5 billion annually between 2025 and 2030 to investments in low-carbon energy and electricity. The goal is to maximize profitability in these activities, aiming for a 12% return by 2030, compared to 10% currently.
Competitive context
In a market where players such as Shell and BP are reducing investments in renewable energy, TotalEnergies is taking the opposite approach. The company is focusing on increased diversification of its energy portfolio, emphasizing both the growth of electricity production and the continuation of its oil and gas activities.
