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MUSCAT: The Sultanate of Oman is among a number of GCC countries that are set to benefit from sustainable finance pledged by Spanish-based multinational infrastructure and renewable energy conglomerate Acciona as part of its push to grow its portfolio of low-carbon initiatives in the Gulf region.
It follows last week’s announcement by the group that it has secured new sustainable financing to the tune of around $325 million to fund the decarbonisation of existing projects, as well as new initiatives designed with a lower carbon footprint in the Gulf. Structured as a green loan with local impact, the sustainable financing also aims to boost sustainable construction, notably by encouraging local suppliers of construction materials to develop and produce lower or zero-carbon building materials, such as cement, concrete and steel, according to Acciona.
Significantly, part of the proceeds are also earmarked for projects that will support climate change mitigation and environmental conservation, including renewable energy development, energy efficiency enhancement, sustainable mobility, and sustainable water management initiatives.
Acciona’s presence in Oman, while relatively modest thus far, is sought to be ramped up, particularly in the renewable energy and sustainable development segments. Around a decade ago, a division of the group was tapped by the Omani government to provide international-class museography at the country’s signature National Museum in Old Muscat. The company has since focused on project opportunities in the water treatment and facilities management sectors.
Of late, Acciona has begun actively exploring opportunities in the expanding ESCO (Energy Services Company) model of delivering energy savings to large consumers, such as malls, industrial and commercial establishments, through the implementation of tailored energy efficiency strategies. By complementing solar PV-based rooftop installation with energy efficiency initiatives in the form of upgrades of lighting systems, air-conditioning / heating, retrofitting of building exteriors, and so on, ESCOs ensure significant energy savings for their customers.
Under its business model for energy efficiency services, Acciona commits to covering all upfront investment costs incurred by a customer seeking to reduce its carbon footprint. It recoups these costs by entering into a long-term arrangement whereby savings earned as a result of the energy efficiency initiatives are shared between the two sides.
Salalah International Airport in Dhofar Governorate is a case in point. By replacing all of the interior and exterior lighting fixtures of the airport complex, Acciona saying it is targeting a 50 per cent reduction in electricity consumption through the adoption of energy efficiency initiatives.
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