ACWA Power inaugurates 445MW Salalah 2 gas-fired power plant in Oman

ACWA Power inaugurates 445MW Salalah 2 gas-fired power plant in Oman
Published: 11 March 2018 - 12:15 a.m.
By: Baset Asaba

Oman has inaugurated the 445MW Salalah 2 gas-fired power plant.

The plant is owned by Dhofar Generating Company, and has been built with an investment of SAR1.7bn ($465m).

The Salalah 2 power plant is located in the Salalah Industrial Area in Raysut, Dhofar Governorate. It was developed by a consortium made up of ACWA Power, Mitsui and Dhofar International Development and Investment (DIDIC).

The consortium had acquired the Dhofar Generating Company in 2016 with Mitsui and ACWA Power holding a stake of 45% each and DIDIC owning the remaining stake of 10%.

Comprising four gas turbines with four heat recovery steam generators and two steam turbines, Salalah 2 was brought online ahead of schedule. The new independent power plant will have a lifecycle of 30 years and will add to the capacity of the existing 273MW plant in Raysut.

Mitsui will operate the two power plants and sell their electricity generation to OPWP as per a 15-year power purchase agreement.

Dhofar Generating Company CEO Naef bin Mohammad Al-Awaed said: “The Salalah 2 Independent Power Plant contributes to the development of the local community and meets the steady increase in industrial, economic and social activity in the province and the Sultanate as a whole.”

Al-Awaed claims that the Salalah 2 power plant will help in drawing more investment to the region in multiple sectors like import and export, infrastructure construction and other projects that need a lot of electricity.

The new power plant will also boost the electricity supply in Dhofar, in line with the pace of urban expansion in the province, said Al-Awaed.

ACWA Power president & CEO Paddy Padmanathan said: “We are pleased to have achieved commercial operations ahead of schedule and to begin to supply much needed additional power to the region.

“Power demand in Oman is rapidly increasing and we look forward to continuing our work with OPWP and our partners to reliably and cost effectively deliver power in Oman.”

The Mitsui, ACWA Power and DIDIC consortium had bagged the rights to develop the Salalah 2 power plant through a bidding held by Oman Power and Water Procurement (OPWP).

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