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Sun 15 Jan 2012 05:57 PM

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Swiss, German firms plan $2bn Oman solar project

Terra Nex, MEBS to collaborate on green energy plan, to create over 2,000 jobs

Swiss, German firms plan $2bn Oman solar project
Plans have been revealed for a $2bn solar power project in Oman. [Image for illustration only]

Switzerland's Terra Nex Financial Engineering announced on Sunday plans for a major $2bn solar power project in Oman.

It said it was collaborating with the Middle East Best Select (MEBS) Group of Funds to develop solar power resources within the sultanate.

Terra Nex, a Swiss licensed and global wealth management company, said in a statement that solar power electricity generation stations were central to the project.

The project aims to generate approximately 400MW and industrial plants will be established in Oman to manufacture the solar panels and aluminium frames to be used by the power station.

The project aims to tie up with major international technology companies and universities with expertise in renewable energy education, to help train the local population.

Sheikh Hilal bin Khalid bin Nasser al Maawali, local partner to Terra Nex and MEBS, said: "This is great beginning for 2012 for Oman. With a major $2bn international investment strong indication of commitment coming to Oman so early in the year, we have yet again highlighted the potential for attractive investment in the sultanate."

David Heimhofer, chairman of Terra Nex and managing director of MEBS Group, added: "Oman's stable business environment and pro-environmental policies makes the Sultanate a natural partner to this project.

"The government's aim to produce 10 percent of its energy needs from renewable energy resources by 2020 is laudable. And this project will go a long way in making that vision a reality."

The project will be financed by world investors and financiers, with the majority coming from Germany.

From the $2bn investment, $600m will be direct equity capital and the remaining covered by loans from European financiers, said Heimhofer.

Terra Nex and MEBS said they have agreed with the local partner, Sheikh Hilal Al-Maawali, to offer 40 percent of the capital for public subscription in the future after not more than four years from the operation of the project.

The project is set to create over 2,000 job opportunities, the statement added.

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Omani 7 years ago

400 mw is nothing compared to the real usage of electricity in Oman...should invest in energy saving first? 400 mw is used by one 8 floors building in Oman,,,$2billion is a lot to waste.

Faisal 7 years ago

I think You have to review your Comment as the 2000 job opportunity and the Education part are additional factual benefit from this project and it's a step for future growing on this field. remember we are depend on gas to produce the electricity which is nonrenewable whereas solar energy is one time investment and long term return.

from where you come up with the 8 floors building power consumption calculation; in fact 400 Mw is a sufficient to run about half of the upcoming Doqum area.

I think on Summary you have to be positive and think more broadly than being sarcastic

Klay 7 years ago


I think you may have a decimal point out of place regarding the power consumption of an 8 storey building. 400 MW is pretty substantial and any investment in renewable energy should be welcomed – Oman does not have the oil and gas reserves enjoyed by its neighbours.

Alexander Beerts 7 years ago

This is 5 Mio. € /MW.
In Belgium we build solar systems at 2 Mio.€/MW.
I do not understand why the difference should be so huge.
Even with the higher solar irradiation, this doens't seem to be very profitable without a lot of government money.

Telcoguy 7 years ago

400MW is roughly the power required by a million Omanis (average is 385W per person). You may live in a really crowdd area.

Blackdo 7 years ago

I think Omani has meant to say 400 kw. He still have a valid point about energy saving, which also would create jobs and reduce huge capitals to invest in building/operating power stations where the gov is subsidizing power.

Solar energy is welcome option for renewable energy, but one should not forget that it cannot substitute the Gas and oil!It is intermittent form of energy.

Let us be positive.