Muscat: Oman’s Authority for Electricity Regulation (AER) has issued a licence for a first-of-its-kind solar power plant in the sultanate.

The 303-kw solar power plant will be located in the province of Al Mazyounah in the southern Dhofar governorate.

The licence has been issued to Bahwan Astonfield Solar Energy Company. The electricity generated at the plant will be sold to the Rural Areas Electricity Company (RAEC) as per an agreement signed between the two companies.

The solar power plant is a significant step towards the use of renewable energy resources in the sultanate. The plant will help in assessing the feasibility of commercial use of such technology, as well as the challenges that may come up if more similar projects with higher capacities are implemented.

Abdul Wahab Bin Abdullah Al Hinai, Director of Licences and Legal Affairs at the AER said that the licence for the pilot project is the first of its kind.

He pointed out that the licence, issued officially on June 1, 2015, is valid for two years — the duration of the power purchase contract signed with RAEC.

He added that the project will help assess the viability of such projects before pilot projects exploiting other renewable resources or other projects with greater capacities especially since the AER has initiated the development of a regulatory framework for the use of renewable energy. The renewable energy bylaws and regulations are expected to be drawn up by the end of this year, he added.

Al Hinai explained that work is under way to develop a regulatory framework for power generation using solar cells placed on rooftops and the power generated by other plants and exported to the grid.

Meanwhile, work on a 50-megawatt wind-based power plant is under way in Shaleem and Halaniyat Islands in Dhofar governorate. The plant will be operated by RAEC once construction work is completed.