The local Al-Kamil Power Company has signed an agreement to extend the power purchase agreement (PPA) with state utility and offtaker Oman Power & Water Procurement Company.

The PPA for the 280MW independent power plant (IPP) has been extended up until December 31 2021, according to a disclosure agreement posted on the Muscat stock market website. The previous PPA had been due to expire in 2017.

The Kamil project is the first of a number of IPPs that are reaching the end of their initial PPA period in the coming years. In 2015, OPWP negotiated contract extensions for the 325MW Wadi Jizzi IPP and 430MW Ghubrah independent water and power project (IWPP), with the PPAs for both projects having been extended until 2018.

In OPWP’s 2016-2022 seven-year statement, the utility states that a “number of plants will reach their contract expiry in 2021 and 2022”, and that owners will “have the opportunity to offer these plants for new long-term PPAs in a competitive tender expected to be issued in 2017.”