State Grid Inks USD 1 Bln Deal for 1 GW of Storage in Oman

 On November 2, State Grid International Development Co., Ltd. signed a framework agreement with Oman's Nama Holding, under which the two parties will jointly conduct preliminary feasibility assessments and advance the development of two battery energy storage stations in Duqm and Ibri. Each station will have an installed capacity of 500 MW, totaling 1 GW. Once completed, the projects will be connected to Oman's 400 kV transmission network, with overall investment estimated at around USD 1 billion. The projects are currently in the pre-assessment and joint development stage.

Each storage station is planned with a 4-hour energy storage system. Upon commissioning, it will provide flexibility support for the grid integration of Oman's wind and solar power, enhance grid operational stability, and ease the grid dispatch pressure caused by fluctuations in renewable power output.

In 2020, State Grid International completed the acquisition of a 49% stake in Oman's National Grid Company (OETC), participating in the operation and management of the local transmission network. The signing of this storage cooperation framework represents an extension of the company's business in Oman from transmission network operation into storage and renewables-related fields. Compared with the traditional power engineering contracting model, this cooperation builds on the existing equity partnership to explore an overseas cooperation model that advances grid technical standards, storage system integration, and operation services in a coordinated manner. Oman continues to push forward its energy transition and steadily raise the share of renewable installed capacity, with grid-side storage becoming a key supporting facility for renewable energy integration. The proposed storage projects constitute new-type flexibility resources supporting the Omani grid and align with the country's renewable energy development plans.

Under the agreement, only the cooperation direction and preliminary project planning have been defined at this stage. Core elements — including storage technology route, investment structure, EPC arrangements, grid-connection timeline, and long-term power purchase mechanisms — remain undetermined and will be further negotiated in subsequent joint assessment work, with the final scheme subject to the executed formal agreement. Whether the projects materialize still depends on multiple prerequisites such as feasibility study conclusions, investment approvals, and local regulatory permits.

Industry observers note that large-scale overseas grid-side storage projects typically involve long development cycles and face uncertainties related to local policies, financing conditions, and grid planning adjustments. If successfully implemented, the projects would provide a reference model for grid-side storage cooperation in the Gulf region and further deepen practical China–Oman cooperation in the power sector.