Back-to-back schemes: Prospective sites and infrastructure requirements are being evaluated in collaboration with stakeholders
Muscat - A Request for Qualifications (RfQ) for a new Independent Power Plant (IPP) plugged into the Main Interconnected System (MIS), which covers the northern half of the Sultanate, is expected to be issued in the third quarter of this year.
An RfQ effectively kicks off the competitive process for the procurement of new electricity generation or, for that matter, water desalination capacity under the Sector Law -- a process administered by the Oman Power and Water Procurement Company (OPWP), the sole procurer of new capacity under the law.
"OPWP plans to procure around 800 megawatts (MW) for January 2021 Commercial Operation Date (COD) as a new Independent Power Project (IPP), via the existing procurement methodology," the state-owned entity - part of Nama Group - said.
"Prospective sites and infrastructure requirements are being evaluated in collaboration with stakeholders, such as Oman Gas Company (OGC) and Oman Electricity Transmission Company (OETC). OPWP expects to select the site and to initiate the procurement process with a Request for Qualifications (RfQ) in Q3 2016, subject to regulatory approval," the company stated in its 7-Year Outlook Statement (2016-2022).
According to a timeline drawn up by OPWP for the procurement of the IPP, a Request for Proposals (RfP) will be issued to the prequalified developers in Q1 2017, with an award envisioned in the third quarter of next year.
On the heels of that contract award will commence the procurement of another mega power scheme, OPWP noted. The proposed 2,700 MW plant, which is planned to come on stream in 2022, will also be developed within the Main Interconnected System (MIS), which accounts for 90 per cent of the nation's total electricity supply.
Giving a timeline for its procurement, OPWP revealed that a Request for Qualifications (RfQ) will be issued in Q3 2017, with a Request for Proposals (RfP) scheduled to follow in Q1 2018. Bids are due in by the third quarter of the year, while an award is anticipated in Q1 2019.
Significantly, this new 2,700 MW power project will be tendered out under a new procurement methodology, which will come into play for the first time in 2017. According to OPWP, this new methodology will allow existing, out-of-contract plants to compete for power generation licenses alongside bidders for new power plants.
"The new procurement methodology is currently under development," the procurer said. "The aggregate capacity of plants that will be out-of-contract in 2022 is about 1,900 MW, although not all of this capacity will participate in the tender," it added.
Since the start of this year, OPWP has completed the procurement of Independent Power Projects at Ibri (1,520 MW) and Sohar IV (1,720 MW), in addition to water desalination capacity at Barka IV (62 million imperial gallons per day MIGD), Sohar III (55 MIGD) and temporary water desalination plants at Qurayyat (1.8 MIGD) and Aseelah (2.2 MIGD).
© Oman Daily Observer 2016
