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EDF Renewables and Korea Western Power Corporation (KOWEPO) consortium reaches financial close on Manah 1 – 500 MW solar project in Oman

EDF Renewables and Korea Western Power Corporation (KOWEPO) consortium reaches financial close on Manah 1 – 500 MW solar project in Oman

  • EDF Renewables-led consortium with KOWEPO financed Manah1, a 500 MW PV project.

    Power Purchase Agreement (PPA) was signed on March 23rd, 2023.

    Plant expected to start commercial operation in the first quarter of 2025.

Muscat : The consortium, led by EDF Renewables and Korea Western Power Corporation (KOWEPO), announced today that it has reached financial close on the Manah 1 – a 500-megawatt (MW) solar power plant located in the Sultanate of Oman.

Following the bid submission in September 2022, the consortium was awarded and signed a 20-year Power Purchase Agreement (PPA) with Oman Power and Water Procurement Company (PWP) on the 23rd of March 2023. Under the terms of the PPA, the consortium shall design, finance, build and operate the plant, which is located in the Al Dakhiliyah Governorate, 175 km South of Muscat. The plant will begin commercial operation in the first quarter of 2025.

The Manah 1 project is the first for EDF Renewables and KOWEPO in the Sultanate and is part of the consortium’s strategy to support the region’s Net-Zero ambitions, as well as contribute to Oman nation’s Clean Energy Goals, through the diversification of the country’s energy mix aiming at 35-39% of renewable generation by 2040.

The financing of the project was made possible thanks to the support of global financial institutions and the strategic partnership formed by French and Korean energy leaders to leverage their combined expertise.

During an official signing ceremony during COP28, the stakeholders signed the financing agreements, a critical step leading to the financial close, which was achieved on the 25th of December 2023. This ceremony was attended by Bruno Bensasson, EDF Group Senior Executive Vice President, Renewable energies and Chief Executive Officer of EDF Renewables; Park Hyung-Deok, President of Western Power Co.; Yoon Hee-Sung, President of Export-Import Bank of Korea; Yang Ki-Mo, Head of KOTRA’s Bank Middle East and North Africa (MENA) regional headquarters; Aymen Koubaa, Regional Head, Energy and Infrastructure Project Finance, Société Générale Middle East, DIFC; Muhammad Al Habsi, Head of Oman’s Muscat Bank UAE office; Eng. Yahya Al Rawahi, Chief Executive Officer of Wadi Noor Solar Power Company SAOC and other distinguished guests.

The financing of the project will be secured through equity and loan scheme from local and international financial institutions, such as the Export-Import Bank of Korea, European bank Société Générale and Oman Bank Muscat.

Olivier Bordes, CEO Middle East, EDF Renewables , said: “We would like to thank the Sultanate of Oman authorities, and in particular APSR, Nama Holding and PWP, for their trust in our consortium to execute the Manah 1 – 500MW Solar PV project . Today we are reaching the financial close for this project, which highlights our strong commitment to contribute to Oman’s goal to produce from 35 to 39 percent of its electricity from renewable sources by 2040 and demonstrates EDF Renewables and KOWEPO’s consortium’s continuing support for the Sultanate in reaching its Clean Goals. This first for the consortium large-scale renewable installation in the country is perfectly in line with the EDF Group commitment to triple the renewable energy net capacity in operation worldwide, between 2023 and 2030.”

Youn Ho Ko, CEO MENA, Korea Western Power , added: “We are very pleased to announce the successful financial close of the Manah 1 solar PV project, and that we are the first Korean company to be awarded a project in Oman. This achievement was possible due to the strong partnership with EDF Renewables and their extensive experience and the unwavering support of Société Générale, KEXIM Bank and Bank Muscat.”

Once commissioned, the project will power over 50,000 Omani households with clean electricity, while offsetting over 700,000 metric tons of CO2 per year.

Key figures of the project:

– Households powered: 50,000

– 700,000 metric tons of CO2 offset/year

– Technology:

* Over 1,000,000 bifacial HP

* Single-axis trackers