Chinese Clean Energy Firm’s Venture Enhances Oman’s Solar Hub Status
Chinese renewable energy company Central New Energy Holding Group’s agreement with power infrastructure firm EGN Limited to develop photovoltaic power plant projects in Oman reflects the country’s position as an emerging PV manufacturing market and underscores its growing advantage in attracting related investments, a market source said.
Under the Memorandum of Understanding, inked on Aug. 25, Oman-based EGN will take the lead in developing an integrated “generation-grid-load-storage” green energy project in the Gulf country, closely linked with data center operations. Central New Energy will contribute investment, construction, solar power plant operation and integrated energy management services.
A key element of the partnership is the joint plan to establish local PV module manufacturing, thereby enhancing Oman’s solar manufacturing capabilities and promoting the development of a complete solar value chain, extending from polysilicon processing to module assembly.
Oman’s Emerging Role in Solar Manufacturing
Oman’s solar manufacturing industry is increasingly attracting investments, with Central New Energy being the latest Chinese entrant. Its move reflects shifts in global solar manufacturing trends, with Southeast Asian downstream production hubs facing U.S. trade restrictions such as anti-dumping and countervailing duties, and reciprocal tariffs. These have limited Southeast Asian exports to the U.S., prompting companies to explore alternative locations, such as Oman, with lower tariff exposure.
In December 2024, JA Solar, one of China’s leading integrated solar manufacturers, announced a $565 million investment to establish 6GW of solar cell capacity and 3GW of module capacity in Oman. While the company has yet to provide official confirmation, industry sources indicate that several of the roughly 12 production lines required for the 6GW cell facility have been completed and entered trial production. However, full commercialization has not yet commenced.
In July 2024, Drinda New Energy, a specialized solar cell producer based in China, announced a $280 million investment to build a 5GW TOPCon solar cell manufacturing facility in Oman, with commissioning initially planned for the end of 2025. However, according to a source familiar with the project, construction has been slower than expected, and production is now unlikely to commence before the second half of 2026.
In March 2024, United Solar began construction of a polysilicon plant in Oman, with a planned annual production capacity of 100,000 metric tons and a total investment of approximately $1.6 billion. According to a source familiar with the matter, trial production is scheduled to start in October this year, with commercial output expected in November. The same source noted that the company has revised its plan, given the weak market outlook, and will commence operations at 50,000 mt per year in the initial phase. The timeline for reaching the full 100,000 mt capacity will be determined based on future market conditions.
Last month, the International Finance Corporation or IFC, a subsidiary of the World Bank, approved $250 million in financing for the polysilicon project. According to Reuters, the decision triggered significant debate within the IFC. The U.S. executive director opposed the financing, citing “geopolitical risks,” while three other executive directors abstained from the vote, including those from Germany, the Netherlands and Nordic countries, requesting further assessment of the project’s implications for supply chain security. The IFC eventually approved the plan by majority vote, highlighting that the project complies with environmental and social sustainability standards, and noting that Oman’s neutral position enables it to effectively mitigate geopolitical risks.
A source noted that this development will enable Oman to carve out a unique — and increasingly credible — position in the global solar market, underpinned by strong government support, favorable geographic conditions and strategic trade access. The source further observed that Oman could become one of the few countries to host at least three of its four major segments of the solar manufacturing supply chain – polysilicon, cells and modules.
Strengthening Green Energy Moves
EGN, founded in 2009 in the Cayman Islands, specializes in clean energy-powered data centers. The company operates over 10 large-scale data centers across the U.S., Latin America, and Asia. The company has already launched multiple data center projects in Oman, where it plans long-term investments and the creation of a regional zero-carbon demonstration cluster, built upon the integration of renewable energy and advanced infrastructure.
Hong Kong-listed Central New Energy currently operates with solar cell and module production capacities of 6GW and 2GW, respectively. The diversified Chinese enterprise is building four new production bases in China and is targeting 60GW of N-type TOPCon cell and 12GW of module production capacity within the next five years. The company is also developing various technological routes, including back contact and perovskite.
Central New Energy’s latest venture marks its second step into the Middle East. In April this year, the company signed an MoU with Sama Tech Ventures in the United Arab Emirates to promote decarbonization cooperation across the Gulf Cooperation Council. That agreement covers long-term collaboration in information exchange, business development, project investment and the commercialization of low-carbon technologies.
One industry observer noted that Central New Energy’s partnership with Sama Tech strengthens its footprint in the UAE and opens channels into other GCC markets. The latest cooperation with EGN further illustrates this regional strategy.
Central New Energy said that the partnership with EGN will strengthen its green energy strategy, leverage its experience in solar power plant development and operation, expand business opportunities, and improve financial performance. Its announcement neither gave details on the construction timelines for the solar power plants or the module facilities, nor did it specify the planned production capacity of the module plant. It did, however, confirm that the MoU will be valid for three years.
–Reporting by Summer Zhang, szhang@opisnet.com; Editing by Mei-Hwen Wong, mwong@opisnet.com