Petroleum Development Oman (PDO) has signed a contract with Marubeni Consortium to develop a 100-MW solar photovoltaic power plant.

Under the terms of agreement, the company will be responsible for the design, procurement, construction, commissioning, financing, operation and maintenance of the plant, reported  Oilprice.com.  In addition, PDO will be the sole buyer for 23 years according to the contract.  The project will include both renewable and non-renewable sources of energy.

By using solar power to generate steam, the process in turn is used to extract oil from deposits located at a close distance. The steam generated is said to extend the field’s shelf life, which has been operational since 1984.

The PDO’s plan to further establish these developments has taken place at the time when the nation plans to expand energy generation. Moreover, in May, state-owned Oman Power and Water Procurement Company announced its plans to develop new projects: three in solar and three in wind by 2024.

OPWP CEO Yaqoob bin Saif Al Kiyumi said the company is investing efforts to reinforce the government’s plan to ensure 10% of electricity is generated from renewable sources by 2025. “That will mean more than 2500 MW of installed renewable capacity by 2025.

“This will likely consist of a combination of solar and wind resources, both of which Oman is well placed to utilise.”