Dentons Advises On Financing Oman’s First Utility-Scale Solar And Battery Storage Project

Dentons has advised a group of leading banks on the project financing of the Ibri III project, marking a major milestone in Oman’s renewable energy journey. The Ibri III project is a 500 MW photovoltaic solar power plant combined with a 100 MW battery energy storage system, making it Oman’s first utility-scale project to integrate large-scale solar generation with battery storage.

The legal advice was provided to Natixis Corporate & Investment Banking, First Abu Dhabi Bank, and Bank Muscat, which are supporting the project through financing arrangements. The project has successfully reached financial close under a consortium of sponsors that includes Abu Dhabi Future Energy Company PJSC (Masdar), Al Khadra Partners, Korea Midland Power Co. Ltd (KOMIPO), and OQ Alternative Energy (OQAE). The project is being developed for Nama Power and Water Procurement, Oman’s single buyer of electricity and water.

The financing facilities arranged by Natixis CIB and First Abu Dhabi Bank cover a significant portion of the total project cost, which is estimated at around US$300 million. This financial backing reflects strong confidence from international and regional lenders in Oman’s renewable energy market and in the project’s long-term viability.

Ibri III plays an important role in supporting Oman Vision 2040, the country’s long-term development roadmap. One of the key goals under this vision is to increase the share of renewable energy in the national power mix. Oman has set a target of generating 30% of its electricity from renewable sources by 2030, and projects like Ibri III are central to achieving this ambition.

Once operational, the 500 MW solar PV plant, supported by a 100 MWh battery energy storage system, is expected to generate enough electricity to supply around 33,000 homes. The inclusion of battery storage will help improve grid stability and allow better use of solar power by storing excess electricity and supplying it when needed. The project is also expected to deliver significant environmental benefits by avoiding an estimated 505,000 tonnes of carbon dioxide emissions each year.

The Dentons advisory team was led by partners Kanishka Singh in Abu Dhabi and Udayan Mukherjee in Dubai. They were supported by a multi-office team including senior associates, associates, and a paralegal based across Abu Dhabi and Dubai. Oman law advice was provided by Dentons lawyers based in Muscat and Doha, ensuring full local legal support for the transaction.

The successful financial close of Ibri III highlights Oman’s growing focus on clean energy and demonstrates how international collaboration between sponsors, lenders, and legal advisors is helping deliver large-scale renewable projects in the region.