Masdar Consortium Secures 300 Million Dollar Financing for Oman’s First Major Solar Battery Storage Project

Abu Dhabi-based clean energy leader Masdar and its consortium partners have achieved financial close for the groundbreaking Ibri III Solar Independent Power Project in Oman marking the Sultanate’s first utility-scale solar facility combined with battery storage technology. The project represents a significant milestone in Oman’s renewable energy transition and national decarbonization strategy.

The Ibri III project secured financing worth approximately 300 million dollars through leading global financial institutions Natixis Corporate & Investment Banking and First Abu Dhabi Bank. The funding will cover a substantial portion of the total project development costs enabling full-scale construction to proceed on schedule.

The consortium behind this landmark project includes Abu Dhabi Future Energy Company PJSC known as Masdar as the lead developer alongside strategic partners Al Khadra Partners Korea Midland Power Company and OQ Alternative Energy. The project is being developed for Nama Power and Water Procurement Company which serves as the sole electricity offtaker under a long-term power purchase agreement signed in September 2025.

Ibri III features an integrated design combining a 500MW solar photovoltaic plant with a 100MWh battery energy storage system. This configuration enables electricity generated during peak sunlight hours to be stored and dispatched during periods of high demand or reduced solar output addressing intermittency challenges that have historically limited renewable energy penetration in conventional power systems.

The facility is expected to generate sufficient clean electricity to power approximately 33000 homes while avoiding an estimated 505000 tonnes of carbon dioxide emissions annually. This environmental impact aligns directly with Oman’s Vision 2040 national strategy which targets generating 30 percent of the country’s electricity from renewable sources by 2030 and achieving net-zero emissions by 2050.

Masdar Chief Executive Officer Mohamed Jameel Al Ramahi emphasized the project’s strategic importance stating the consortium thanks its lenders and partners for enabling this significant milestone which highlights Masdar’s commitment to helping Oman achieve its energy transformation goals. He noted the great potential for battery energy storage to expand renewable energy deployment while leveraging advanced technologies to deliver clean secure power for the Sultanate.

The project scope encompasses comprehensive development responsibilities including design construction ownership financing operation and maintenance of both the solar plant and storage system infrastructure. The integrated approach ensures long-term operational efficiency and grid stability benefits for Oman’s electricity network.

Industry analysts highlight that the inclusion of battery storage represents a critical advancement for renewable energy deployment in the Gulf region. The storage component provides fast-response capacity that can smooth fluctuations in supply and demand while enhancing overall grid stability as renewable capacity expands across the national electricity system.

The Ibri III project demonstrates growing investor confidence in large-scale renewable and storage assets throughout the Middle East region. The successful financial close with commercial debt from international banks establishes a new template for storage-enhanced solar developments across emerging markets where governments are balancing energy security objectives with climate commitments.

Construction activities are expected to generate significant local economic benefits including job creation skills development and technology transfer related to advanced energy storage systems. These opportunities support Oman’s broader economic diversification goals while building domestic capabilities in the rapidly growing clean energy sector.

The project reinforces Masdar’s position as a leading developer of utility-scale renewable energy infrastructure across global markets. The company which is majority-owned by Mubadala Investment Company ADNOC and TAQA has steadily expanded its international portfolio across the Middle East Asia Europe and the Americas targeting 100GW of clean energy capacity by 2030.

Commercial operations for the Ibri III facility are targeted for the latter part of the decade aligning with Oman’s national energy transition timelines and supporting the country’s strategic shift toward preserving natural gas resources for higher-value industrial applications and export markets while transitioning electricity generation to cleaner renewable sources.