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Experts selected for Concentrated Solar Power project feasibility study

MUSCAT -- Oman's ambitious bid to venture into large-scale renewable energy development has received further impetus following the selection of a consortium of experts to advise the government on the planned implementation of a Concentrated Solar Power (CSP) project in the Sultanate. The consortium comprises WorleyParsons Oman Engineering (as Technical Advisers), Macquarie (as Financial Advisers), and Chadbourne & Parke (as Legal Advisers). The group has been tasked with assisting the Public Authority for Electricity and Water (PAEW) in charting an effective strategy for the realisation of the government's aspirations in the area of renewable energy development.

The consortium's principal brief is to study the feasibility of establishing a Concentrated Solar Power (CSP) project from the technical, financial and legal standpoints. The project is proposed to be implemented through a competitive process with international investors invited to bid for a licence to design, develop, finance and operate the plant. Significantly, the PAEW will supervise the feasibility study and subsequent competition process. Plant capacity is envisaged at anything between 50 MW and 200 MW, which despite being modest compared to conventional gas-based power projects, is described as significantly large-scale at current world standards.

The optimum size of the project will however be determined by the PAEW based on the recommendations of the consultants. WorleyParsons Oman, the Lead Consultant, was selected from amongst a shortlist of 10 international firms that bid for the prestigious consultancy contract. A record 58 firms had collected bid documents when the tender was first floated in April, underlining the robust international interest in the Sultanate's maiden foray into large-scale solar energy development. All three consortium members are heavyweights in their own fields. WorleyParsons is a leading provider of professional services to the energy, resources and complex processes industries.

The Financial Adviser, Macquarie, is a global provider of banking, financial, advisory, investment and funds management services. Founded in 1969, Macquarie operates in more than 26 countries, employing around 12,700 staff worldwide. Chadbourne & Parke is well known for its global practice in project finance and energy, international insurance and reinsurance practice, multi-jurisdictional litigation, and corporate law. As part of its feasibility study, the consortium will provide a detailed assessment of existing solar power projects, as well as details of ownership structures and commercial arrangements with regard to existing operations around the world.

Additionally, the consultants will review the experience of solar power technologies currently in vogue, installed capacities of existing plants, and the reliability of such technologies and projects. Further, the consortium will evaluate the benefits of combining power generation and water desalination at a solar power facility, as well as the benefits of integrating conventional power generation technologies with solar power generation. Also as part of the feasibility study, the consultants will identify factors influencing the optimal location of a solar power project in Oman. Solar power generation capacities, technology options and configurations will also be discussed in the study.

Further, in co-ordination with Oman Power and Water Procurement Co (OPWP) , Oman Electricity Transmission Company (OETC) and the Ministry of Housing, among other bodies, the consultant will identify a shortlist of suitable locations for the proposed solar power project. Importantly, the consultants will provide their assessment of the current conditions in the market for a privately financed solar power project, as well as the markets for debt and equity for large-scale renewable projects in particular. They will also undertake a detailed financial and economic evaluation of alternative technologies and capacity ranges of potential solar power projects in Oman.

Oman's quest for renewable energy development received a major boost last year when the Authority for Electricity Regulation Oman issued a landmark study confirming the Sultanate's significant renewable energy potential primarily in the area of solar and wind energy. In particular, the study singled out CSP as a technology with promising commercial scale solar energy potential.

By Conrad Prabhu

© Oman Daily Observer 2009