22 January 2012
MUSCAT: Oman government is planning to unbundle Dhofar Power Company's (DPC) power distribution business to align with the practice prevailing in other parts of the country.
DPC, which is currently the principal supplier of electricity in Dhofar governorate, will shed its distribution business to either another entity of its parent Electricity Holding Company (EPC) or to a separate entity within DPC itself.
The generation, transmission, distribution and supply businesses, currently undertaken by the company as a vertically integrated utility, will be separated and regulated in line with the provisions of the Sector Law.
DPC's power is generated by its 100 per cent subsidiary Dhofar Generating Company, which has a generation capacity of 256MW.
"The market structure in Salalah is not aligned with the rest of the country. The idea of unbundling is to restructure the business in accordance with the rules and regulations. But it will be within the group," said a source.
DPC owns and operates the Salalah Power System, an integrated power generation, transmission and distribution system serving an estimated 60,000 customers across a wide swath of Dhofar region.
"We hope to complete it within this year," added the source.
Expansion
The company envisages an investment amounting to several hundred millions for developing the transmission and distribution networks in the southern region over the next five years. In fact, DPC has already started investing in several transmission and distribution network projects, which are under different stages of implementation and completion.
The source said that the realignment of business within the EPC group will no way affect the transmission and distribution network expansion programmes of DPC.
Dhofar Power has already invested for a project designed to interconnect the new IWPP, which is being developed by Sempcorb Salalah Power and Water Company at Taqah, to the Salalah System. Sempcorb Salalah, which already commissioned its first phase of 61 megawatts of power, is expected to commission its full capacity by April-May this year.
The $1bn-greenfield IWPP at Taqah in Dhofar region, will have the capacity to generate around 450MW of power and 15mn gallons/day (MIGD) of desalinated water.
According to Oman Power and Water Procurement Company (OPWPC), power demand in Salalah is expected to grow from 251MW in 2007 to 580MW by 2014, an average increase of around 13 per cent or 50MW a year.
The demand for power will be driven by the Salalah Free Zone, which is proceeding with its second-phase development to accommodate small-and medium-sized units, especially processing and redistribution units.
MUSCAT: Oman government is planning to unbundle Dhofar Power Company's (DPC) power distribution business to align with the practice prevailing in other parts of the country.
DPC, which is currently the principal supplier of electricity in Dhofar governorate, will shed its distribution business to either another entity of its parent Electricity Holding Company (EPC) or to a separate entity within DPC itself.
The generation, transmission, distribution and supply businesses, currently undertaken by the company as a vertically integrated utility, will be separated and regulated in line with the provisions of the Sector Law.
DPC's power is generated by its 100 per cent subsidiary Dhofar Generating Company, which has a generation capacity of 256MW.
"The market structure in Salalah is not aligned with the rest of the country. The idea of unbundling is to restructure the business in accordance with the rules and regulations. But it will be within the group," said a source.
DPC owns and operates the Salalah Power System, an integrated power generation, transmission and distribution system serving an estimated 60,000 customers across a wide swath of Dhofar region.
"We hope to complete it within this year," added the source.
Expansion
The company envisages an investment amounting to several hundred millions for developing the transmission and distribution networks in the southern region over the next five years. In fact, DPC has already started investing in several transmission and distribution network projects, which are under different stages of implementation and completion.
The source said that the realignment of business within the EPC group will no way affect the transmission and distribution network expansion programmes of DPC.
Dhofar Power has already invested for a project designed to interconnect the new IWPP, which is being developed by Sempcorb Salalah Power and Water Company at Taqah, to the Salalah System. Sempcorb Salalah, which already commissioned its first phase of 61 megawatts of power, is expected to commission its full capacity by April-May this year.
The $1bn-greenfield IWPP at Taqah in Dhofar region, will have the capacity to generate around 450MW of power and 15mn gallons/day (MIGD) of desalinated water.
According to Oman Power and Water Procurement Company (OPWPC), power demand in Salalah is expected to grow from 251MW in 2007 to 580MW by 2014, an average increase of around 13 per cent or 50MW a year.
The demand for power will be driven by the Salalah Free Zone, which is proceeding with its second-phase development to accommodate small-and medium-sized units, especially processing and redistribution units.
© Times of Oman 2012
