28 July 2015
Muscat: Heavy investment is being planned to raise power generation and strengthening transmission lines and distribution network in the Sultanate's interior regions.

According to a three-year investment plan, Rural Areas Electricity Company (Raeco) plans to invest OMR153 million in the next three years between 2015 and 2017 in raising power generation capacity, transmission lines and distribution networks across the country, Eng. Hamad bin Salim Al Maghderi, the company's chief executive officer, told the Times of Oman on Monday.

"As much as 60 per cent of the investment is for power projects and 40 per cent for developing transmission lines. The investment is required to build more power plants, develop networks and for setting up more primary sub-stations in the areas we operate in," added Al Maghderi.

The Raeco chief also noted that power demand is growing, mainly driven by industries, commercial establishments, and tourism ventures as well as newly developed residential projects.

He said the company is growing by about 10 per cent per annum.

Presently, Raeco is developing a power plant in Mazyouna, new transmission lines in Haima and network expansion in Duqm.

Eng. Al Maghderi said the company's investment plan is based on advanced data on power demand and developing areas.

"We are always in communication with all our stakeholders in the area where we operate and encourage them to give us all data to get a clear picture on how much we have to invest to enhance the power network," he said.

Renewable energy

Raeco is also focussing on renewable energy projects, which will reduce dependence on diesel fuel in the long-run.

Raeco recently announced commencement of power generation from Oman's first commercial solar power project in Al Mazyona in South Oman.

The solar project is part of a major initiative to substantially raise the contribution of renewable energy in total power generation to 25 per cent in five years.

Raeco presently generates 680 megawatt to cater to the demand for power from different parts of the country, mainly in rural areas.

© Times of Oman 2015