A consortium led by Abu Dhabi Future Energy Company Masdar has achieved financial close for Oman’s first utility-scale solar power project integrated with battery energy storage, marking a significant step in the Sultanate’s clean energy transition and long-term decarbonisation strategy. The project, located in the Wilayat of Manah in the Ad Dakhiliyah Governorate, is designed to supply enough electricity to power about 33,000 homes while avoiding roughly 505,000 tonnes of carbon dioxide emissions each year.

The Manah 1 independent power project combines a large photovoltaic solar plant with a grid-scale battery storage system, enabling electricity generated during daylight hours to be stored and dispatched during periods of peak demand or reduced solar output. The financial close confirms that all funding arrangements are in place, allowing full-scale construction to proceed on schedule. Commercial operations are targeted for the latter part of the decade, aligning with Oman’s national energy transition timelines.

Masdar is leading the consortium alongside its partners, with the project developed in cooperation with Oman Power and Water Procurement Company, which acts as the sole offtaker under a long-term power purchase agreement. The initiative supports Oman’s goal of sourcing at least 30 per cent of its electricity from renewables by 2030 and achieving net-zero emissions by 2050.

Project financing has been arranged through a combination of regional and international lenders, reflecting growing investor confidence in large-scale renewable and storage assets in the Gulf. Industry analysts note that the inclusion of battery storage is a critical feature, addressing intermittency concerns that have historically limited the penetration of solar power in conventional power systems dominated by gas-fired generation.

Masdar, which is majority-owned by Mubadala Investment Company, ADNOC and TAQA, has steadily expanded its portfolio across the Middle East, Asia, Europe and the Americas. The Manah 1 project reinforces the company’s position as a key developer of utility-scale renewable energy infrastructure in emerging markets, particularly where governments are seeking to balance energy security with climate commitments.

Officials familiar with the project say the battery storage component will enhance grid stability in Oman by providing fast-response capacity that can smooth fluctuations in supply and demand. This is increasingly important as renewable capacity grows and as electricity consumption patterns evolve with industrial expansion, urbanisation and electrification initiatives.

The Manah solar and storage facility is also expected to generate local economic benefits during the construction and operational phases. These include job creation, skills development and the transfer of technical expertise related to advanced energy storage systems, an area that remains at an early stage of deployment in much of the region.

Oman’s renewable energy push has gathered momentum through a pipeline of solar and wind projects supported by policy reforms, competitive procurement frameworks and clearer long-term targets. Gas continues to play a central role in the country’s energy mix, but officials have repeatedly stressed the need to preserve gas for higher-value uses such as industry and exports, while shifting power generation towards cleaner sources.

Energy economists observe that utility-scale solar combined with storage is becoming increasingly cost-competitive, particularly in regions with high solar irradiance. Falling battery prices and improved system efficiencies have narrowed the cost gap with conventional generation, making hybrid projects more attractive to both governments and investors.

The Manah project builds on earlier renewable initiatives in Oman, including wind farms in Dhofar and smaller-scale solar installations, but stands out for its size and technological integration. It is widely seen as a test case for future projects that could pair renewables with storage to provide firm, dispatchable power.