Ibri II Solar Park to Support Oman’s Paris Accord Goals: Report
Last year, AIIB’s Board of Directors approved financing of up to $60mln for the Ibri II project.
Oman’s first and largest utility-scale solar photovoltaic (PV) Independent Power Project (IPP), which is slated to come into operation at Ibri in Al Dhahirah Governorate this month, will make an important contribution to the Sultanate’s commitments under the Paris Agreement to reducing carbon dioxide (CO2) emissions – the greenhouse gas responsible for global warming and climate change.
According to a report by the Asian Infrastructure Investment Bank (AIIB), which had pitched in with funding support for the 500 MW solar park, Ibri II – as the sprawling PV-based scheme is called – will also help diversify the Sultanate’s energy mix and meet the country’s growing needs for electricity to support economic development and industrial investment.
“Extending over 13 million square metres and containing about 1.4 million solar panels, the solar park will provide renewable energy for about 33,000 homes once completed and avoid the emission of approximately 800,000 tons of CO2-equivalent per year, contributing to achieving Oman’s nationally determined contribution under the Paris Agreement,” the Beijing-headquartered multilateral development institution stated in its newly released 2020 Annual Report.
Last year, AIIB’s Board of Directors approved financing of up to $60 million for the Ibri II project, which has been developed by a consortium led by ACWA Power of Saudi Arabia with an investment of around $400 million. The lender’s contribution, amounting to approximately 15 per cent of the total project cost, helped spur other regional investors and institutions to pitch in as well, the Bank noted in its report.
“AIIB had been the leading voice on the project, ensuring that the project itself was prepared for and committed to upholding the highest environmental and social standards,” said Seung Myun Lee, Senior Operations Management Officer at AIIB and Project Team Leader of the Ibri II project.
“AIIB’s participation in the project is aligned with AIIB’s mission of financing ‘Infrastructure for Tomorrow’, which commits the Bank to invest in sustainable development projects. Green infrastructure projects such as Ibri II support Oman’s climate goals under the Paris Agreement,” the Bank further noted. “The project is the largest solar farm to date in Oman and is co-financed with several international and regional lenders, with AIIB leading direct private capital mobilisation.”
Ibri II will generate annually 1,598 gigawatt-hours (GWh) of electricity at full capacity. The project will increase the availability of renewable power generation capacity and improve the balance between supply and demand during the peak hours of Oman’s Main Interconnected System grid, which serves Muscat and northern Oman.
Importantly, Ibri-II’s imminent start-up will add new momentum to Oman’s goal of generating at least 10 per cent of its energy requirement from renewable sources by 2025, rising to 30 per cent by 2030 – targets enshrined in the National Energy Strategy 2040.
Additionally, the project’s location in Al Dhahirah Governorate has contributed to socioeconomic development in communities around the project site. “Ibri II has already boosted the local economy, creating jobs and stimulating demand for local goods, despite the challenges posed by COVID-19 during the run-up to the project’s commercial launch,” added AIIB in its report.
Source: zawya
