Oman Solar Thermal Industrial Power Plant Development Feasibility Study with Renewable Energy Market Outlook

Executive Viability Abstract

This feasibility study evaluates the development of a 100MW Solar Thermal Industrial Power Plant in the Sultanate of Oman. Leveraging Oman's high Direct Normal Irradiance (DNI) of over 2,200 kWh/m²/year, the project aims to serve the industrial corridors of Duqm and Sohar. The study confirms high viability due to Oman Vision 2040's renewable energy mandates and the increasing cost of natural gas for industrial process heat.

## Market Analysis Oman's renewable energy market is transitioning from experimental to utility-scale. With a target of 20% renewable energy by 2030, the demand for stable, non-intermittent power is critical for heavy industry. Current natural gas subsidies are being phased out, making Concentrated Solar Power (CSP) with Thermal Energy Storage (TES) a competitive alternative for 24/7 industrial operations. ## Technical Feasibility The project proposes a Central Receiver Tower system with 12 hours of molten salt storage. This configuration allows for the generation of high-pressure steam required for industrial processes and turbine electricity. Site selection focuses on the Al Wusta region, characterized by flat topography and minimal cloud cover. Challenges include dust accumulation, necessitating automated dry-cleaning systems to maintain heliostat reflectivity. ## Financial Projections The total project cost is estimated at $320M USD. Revenue will be generated through 25-year Power Purchase Agreements (PPA) with the Oman Power and Water Procurement Company (OPWP) or direct industrial bilateral contracts. The Levelized Cost of Energy (LCOE) is projected at $0.068 per kWh, accounting for the extended storage capabilities. ## Risk Assessment Key risks include capital intensive nature compared to PV, potential shifts in national hydrogen strategy, and supply chain volatility for molten salts. Mitigation strategies involve securing long-term debt financing through green bonds and leveraging local content for civil works.