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Chinese contractor appointed for Oman wind IPP

29 January 2026

 

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China Energy Engineering Corporation (CEEC) Shanxi Institute has won the engineering, procurement and construction (EPC) contract for the 125MW Dhofar 2 wind independent power project (IPP) in Oman.

The main construction includes the design, equipment procurement, construction, commissioning and after-sales services for the wind farm.

The contract also comprises the construction of a new 400kV substation and a 3.7-kilometre-long transmission line.

In November, state offtaker Nama Power & Water Procurement Company (Nama PWP) awarded the developer’s contract to Singapore’s Sembcorp Utilities and local firm OQ Alternative Energy (OQAE) under a 20-year power purchase agreement (PPA).

Under the PPA, Sembcorp and OQAE will build, own and operate the wind farm, which will supply power to Nama PWP once operational.

As MEED previously reported, Sembcorp will have 75% equity in the project and OQAE will own the remaining 25%.

The project is expected to begin commercial operations in the third quarter of 2027.

In October, CEEC, through its subsidiaries, signed EPC contracts for three major renewable energy projects in Saudi Arabia with a total capacity of 5GW.

The agreements cover the 1GW Shaqra wind power project, the 2GW Starah wind power project and the 2GW Khulis solar photovoltaic project.

The Dhofar 2 IPP is valued at about RO43m ($112m) and will be located on a 12-square-kilometre site in Dhofar Governorate.

The project comprises 20 Windey WD200 turbines, each with a 6.25MW capacity. Each turbine stands 215 metres tall and will be connected to the national grid with a 400kV substation.

The development will provide clean electricity to more than 18,000 homes and will cut carbon dioxide emissions by about 158,000 tonnes a year.

Sembcorp has over 1.1GW of energy assets in Oman. In September, the firm signed a new 10-year power and water purchase agreement with Nama PWP for its Salalah independent water and power plant.

According to Nama PWP, the offtaker has contracted 26 water and desalination plants, exceeding $11bn in investment, over the past 15 years.

Chief energy transition officer at Nama PWP, Abdullah Bin Rashid Al-Sawafi, said the company “plans to attract a further $5bn over the next five years, mainly in renewable energy and storage technologies”.

This includes an extra 9GW of renewable energy capacity by 2030, representing 60% of total contracted capacity.

Oman aims to have 30% of its electricity generation from renewable sources by the same year.

READ THE JANUARY 2026 MEED BUSINESS REVIEW – click here to view PDF

Saudi Arabia courts real estate investment; EVs and battery production are key regional tech themes; Muscat holds a steady growth course despite headwinds

Distributed to senior decision-makers in the region and around the world, the January 2026 edition of MEED Business Review includes:

> ECONOMIC ACTIVITY INDEX: UAE and Qatar emerge as markets to watch
To see previous issues of MEED Business Review, please click here
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Mark Dowdall

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