Project Overview: Misfah and Duqm IPPs
The Misfah and Duqm projects will both use Combined-Cycle Gas Turbine (CCGT) technology, which is known for its high efficiency and low emissions compared to older thermal technologies.
Both plants are planned to be developed on a Build, Own, and Operate (BOO) basis, inviting private sector investment and international developers. Nama PWP, which handles the procurement of new power and water capacity in Oman, has invited interested companies to submit their Statements of Qualification (SOQs) no later than 13 March 2025.
By combining both sites into a single tender package, the government aims to simplify the bidding process, enhance economies of scale, and attract leading global players.
Strategic Shift: Gas Power Returns Amidst Renewable Push
This move marks a notable strategic shift from Oman’s 2022 position, where the country had put most of its focus on renewable energy, especially solar and wind projects.
The reintroduction of large-scale gas-fired projects into the national pipeline reflects the realities of electricity demand growth, and the need for stable baseload power, which intermittent renewables cannot always provide.
By balancing fossil fuel reliability with clean energy ambitions, Oman is signaling a more pragmatic energy roadmap that secures long-term grid stability.
Project Timeline: Milestones Ahead
Nama PWP has outlined a clear and ambitious timeline for the implementation of both power plants:
- 📄 Request for Proposal (RFP) Issuance: Expected in Q1 2025
- 🏆 Contract Award: Scheduled for Q4 2025
- ⚡ Early Power Production: Aimed for Q2 2028
- ✅ Full Commercial Operation: Targeted by Q2 2029
These deadlines are designed to ensure that the power plants will be online in time to address future electricity demand growth, particularly in industrial zones and urban centers such as Muscat and Duqm.
Financial and Technical Advisory
To support the tender process, Oman has appointed Synergy Consulting, a global advisory firm with offices in the United States and India, as the financial adviser for the projects.
The BOO model will encourage foreign direct investment (FDI) and leverage private sector expertise in the construction, financing, and operation of complex infrastructure projects.
This approach aligns with Oman’s broader economic diversification strategy under Vision 2040, which aims to reduce dependency on oil revenues and promote public-private partnerships.
Parallel Push: Renewable Energy Projects On the Horizon
While the Misfah and Duqm projects focus on natural gas, Oman remains strongly committed to renewable energy development.
Nama PWP has also announced plans to launch the prequalification phase for five wind-based IPP projects. These projects are expected to be located across various regions and are intended to begin contributing to the grid by 2027.
Oman is targeting 30% of its electricity generation from renewables by 2030, and up to 39% by 2040, as part of its commitment to the Paris Agreement and net-zero emissions goals.
Notably, the Duqm region, which will host one of the new gas-fired power plants, is also home to several green hydrogen and solar energy pilot projects, turning it into a key energy innovation hub in the Middle East.
Why These Projects Matter
- Power Demand Growth: With increased industrial activity, urban expansion, and rising temperatures, electricity consumption in Oman is projected to grow significantly over the next decade.
- Geopolitical Resilience: By strengthening domestic generation capacity, Oman reduces its reliance on imported power or regional energy networks that may be impacted by geopolitical risks.
- Industrial Development: Both Misfah (near Muscat) and Duqm (a strategic port city) are critical zones in Oman’s industrial expansion. Reliable and adequate power is crucial for the success of free zones, oil refineries, and logistics hubs.
- Investor Confidence: Launching structured and transparent tenders with clear commercial models encourages international participation, boosts investor confidence, and elevates Oman’s profile in global energy markets.
Looking Ahead: A Balanced Energy Future
The launch of the prequalification process for the Misfah and Duqm IPPs is a clear sign that Oman is taking bold, calculated steps to prepare its power sector for the future.
By integrating gas-fired reliability with renewable innovation, Oman is laying the foundation for an energy mix that is flexible, sustainable, and future-ready.
With international advisers onboard, a solid regulatory framework, and a clear development roadmap, Oman’s power sector is poised to attract robust investment and ensure long-term energy security for its citizens and industries alike.
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