Pre-qualification of bidders for large-scale solar power project to commence shortly

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MUSCAT -- Oman's authorities are expected to shortly launch the competitive process linked to the development of a large-scale solar power project in the Sultanate.

A Request for Proposals (RfP) is due to be issued here in the coming weeks inviting international developers and other prospective parties to register their desire to participate in the competitive tender, as well as present their credentials in the field of renewable energy development, in particular large-scale solar power.

Oman's maiden foray into large-scale renewable energy centres on plans for a Concentrated Solar Power project sized at between 100-200MW.

Although modest in capacity compared with conventional gas-based power plants, the solar power project is still regarded as world-scale in size, investment and technology, say officials.

The Public Authority for Electricity and WaterPublic Authority for Electricity and Water (PAEWPAEW) is overseeing the formulation of a strategy for large-scale solar energy development in the Sultanate. The Authority has appointed a consortium of leading international consultants to study the feasibility and scope of the proposed concentrated solar power plant. The consortium is made up of WorleyParsons Oman Engineering (Technical Advisers), Macquarie (Financial Advisers) and Chadbourne & Parke (Legal Advisers).

A feasibility study launched by the consortium partners last October is now nearing completion, with a draft report currently under finalisation, say officials.

Based on the recommendations set out in the feasibility study, the PAEWPAEW is expected to decide on the optimum capacity at which the project will be sized. Four potential sites have also been identified for the location of the proposed solar power project.

They were shortlisted from numerous locations studied by the consortium during an extensive survey of prospective sites across Oman's desert heartland.

Officials are currently working towards obtaining the requisite permits and approvals for these shortlisted sites, one of which will eventually be chosen for the establishment of the solar power project.

Significantly, the plant will be based on any of the following three technologies photovoltaic (PV), parabolic trough, and solar tower the efficacy of which have been successfully demonstrated through the establishment and operation of a number of large-scale solar power projects based on these technologies around the world.

According to authorities, the prequalification and competitive bid process will be overseen by the Oman Power and Water CompanyOman Power and Water Company (OPWP), which has the mandate under the sector law to, among other things, oversee the procurement of new power generation and related water desalination capacity.

The selected developer will secure a license to design, develop, finance and operate the plant.

Oman has significant renewable energy potential primarily in the area of solar and wind energy, according to a landmark study commissioned by the Authority for Electricity Regulation - Oman in 2008.
In particular, the study singled out concentrated solar power as a technology with promising commercial scale solar energy potential.

The Sultanate's first ever large-scale renewable energy venture will not only help in the establishment of a framework for renewable energy projects, but also contribute to a number of important goals: the development of local capabilities, local manufacturing industry, local operating and maintenance capabilities, and training and development opportunities for Omani nationals.

By Conrad Prabhu

© Oman Daily Observer 2010