Oman’s Duqm-Ibri BESS project has advanced following a $1 billion framework agreement covering two utility-scale battery energy storage installations. The development will deliver a combined power capacity of 1GW across Duqm Industrial Station and Al-Subaikhi (Ibri Solar 3) Station. Each installation will provide 500MW and connect to the national electricity transmission network at 400kV.
Nama Holding, a subsidiary of Oman Investment Authority (OIA), signed the agreement with China’s State Grid International Development on November 2, 2026. The investment, valued at approximately $1 billion, forms part of wider economic partnerships between Oman and China. The project will strengthen grid reliability and support the country’s expanding renewable energy infrastructure.
Duqm-Ibri BESS Project Covers Two 500MW Installations
The project comprises two battery energy storage systems at strategic electricity infrastructure locations. The first installation will occupy Duqm Industrial Station in Al Wusta Governorate. The second will connect to Al-Subaikhi, also identified as Ibri Solar 3 Station, in Ad Dhahirah Governorate.
Both facilities will operate at 400kV and integrate with Oman’s national electricity transmission network. This connection will allow the systems to support electricity distribution and grid management across the country.
The installations will store surplus electricity and release it when demand increases or renewable generation declines. Consequently, the infrastructure will help grid operators manage fluctuations from solar and wind generation.
However, the agreement does not disclose the battery chemistry, storage duration or detailed engineering specifications. It also provides no confirmed construction commencement or commissioning dates. Furthermore, the companies have not announced the engineering, procurement and construction contractors.
The framework agreement establishes cooperation between the two companies to evaluate and develop the facilities. Therefore, further project announcements will clarify the delivery arrangements and technical scope.
Oman’s investment in large-scale battery storage also reflects developments across the wider Middle East, particularly Saudi Arabia’s expanding electricity storage programme. Saudi Arabia is advancing the world’s largest battery storage facility, as the Kingdom expands utility-scale storage to strengthen grid reliability and support renewable energy integration.
While the Saudi development targets substantially larger storage deployment, the Duqm-Ibri BESS project demonstrates Oman’s parallel commitment to strengthening regional electricity infrastructure through two 500MW installations. Together, the developments highlight growing Gulf investment in battery storage as countries accelerate renewable energy deployment and modernise their electricity networks.
Duqm-Ibri BESS Project Supports Oman’s Renewable Energy Expansion
The development comes as Oman expands its electricity transmission infrastructure to accommodate additional renewable generation. The country targets a 30% renewable electricity share by 2030, compared with approximately 4% in 2024. Meanwhile, electricity demand could reach 10TWh by 2031, increasing pressure on generation and transmission infrastructure.
Oman Electricity Transmission Company has outlined plans to connect approximately 5.7GW of solar capacity and more than 2GW of wind power between 2027 and 2030. These developments will require additional grid flexibility and electricity balancing infrastructure.
Meanwhile, Nama Power & Water Procurement Company is advancing a separate 950MW standalone battery storage program. The program comprises five installations with a combined planned storage capacity of 3,800MWh. Its largest facility will deliver 500MW in Sohar, while four additional installations will serve other locations.
The separate procurement should not be confused with the Duqm-Ibri BESS development. The two initiatives nevertheless demonstrate Oman’s growing commitment to utility-scale electricity storage.
Oman is also developing integrated renewable generation and storage infrastructure. The Ibri III Solar Independent Power Project combines 500MW of solar photovoltaic capacity with a 100MWh battery system. The project reached financial close in January 2026, strengthening the country’s experience with integrated solar and storage developments.
The new agreement also builds on an existing relationship between Nama Holding and State Grid International Development. State Grid acquired a 49% stake in Oman Electricity Transmission Company through a transaction completed in 2020. The investment established its participation in Oman’s electricity transmission infrastructure.
The Duqm-Ibri BESS development therefore extends this partnership into large-scale energy storage. Its implementation will support Oman’s electricity infrastructure modernisation and renewable energy ambitions. However, construction schedules and contractor appointments remain outstanding.
Project Fact Sheet
Name: Duqm-Ibri Battery Energy Storage Systems Project.
Type: Utility-scale battery energy storage infrastructure.
Location: Duqm Industrial Station and Al-Subaikhi (Ibri Solar 3 Station), Oman.
Total installed power capacity: 1GW (1,000MW).
Duqm installation capacity: 500MW.
Ibri installation capacity: 500MW.
Number of installations: Two.
Grid connection voltage: 400kV.
Grid integration: Oman’s national electricity transmission network.
Estimated investment: RO384.5m (approximately $1bn).
Agreement type: Framework agreement.
Agreement signing date: November 2, 2026.
Project development partners: Nama Holding and State Grid International Development.
Main development scope: Two battery energy storage systems and associated grid integration infrastructure.
Primary objective: Strengthen electricity grid reliability, improve operational flexibility and support renewable energy integration.
Project Team
Developer: Nama Holding, a subsidiary of Oman Investment Authority.
Omani investment authority: Oman Investment Authority (OIA).
Framework agreement partner: State Grid International Development (SGID), China.
Chinese parent company: State Grid Corporation of China.
Electricity transmission network operator: Oman Electricity Transmission Company (OETC).
National electricity procurement entity: Nama Power & Water Procurement Company.
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