MUSCAT -- Oman Power and Water Procurement Company (OPWP), the Sultanate's sole procurer of all new electricity generation and water desalination capacity, aims to initiate the process of procuring of new power and water projects in Duqm (Wusta Governorate) and in Khasab (Musandam Governorate).
The new ventures are part of a portfolio of new power and water projects planned for development and implementation through to the year 2020 in line with escalating demand growth.
In Duqm, the Public Authority for Electricity and Water (PAEW), which is responsible for, among other things, the transmission and distribution of potable water supply, has requested OPWP to initiate procurement of a new Independent Water Project (IWP) of 30,000 cubic metres (m3) per day (7 million imperial gallons per day -- MIGD) capacity. A tender for the procurement of the IWP is proposed to be floated in the fourth quarter of this year, with commercial operation slated for Q4 2017.
Water demand, both for industrial and non-industrial use, is projected to soar in line with Duqm's development into a major industrial and maritime hub. A decision on whether to proceed with the IWP procurement will be firmed up later this year once it is clarified whether PAEW will be responsible for Duqm's industrial water demands, says OPWP.
Duqm is presently served by a 6,000 m3/d (1 MIGD) desalination plant owned by the Rural Areas Electricity Company (RAECO), as well as a number of local water sources. Pending the procurement of new capacity, RAECO plans to meet incremental demand growth by adding another 6000 m3/day (1.3 MiGD) of new capacity to its existing plant. Further, temporary desalination capacity of 10,000 m3/day (2 MIGD) is proposed to be moved from Muscat to Duqm in 2017 to address rising demand.
In addition, the state-run procurer expects to finalise plans for a potential Independent Power Project (IPP) at Duqm during 2014, with commercial operation targeted during 2018. The installed capacity is expected to be in the range of 300 MW to 400 MW, but this will depend on a wider study of energy options for the Duqm area.
As part of the study, OPWP is evaluating the merits of tendering for a gas-fired IPP to meet growing demand in the medium-term. Strategic options under evaluation may include a transmission interconnection with the PDO network or with the MIS (Main Interconnected System serving north Oman), and the level of generation capacity that may make such interconnection economically feasible.
The study will also explore the feasibility of incorporating outlying localities, such as towns along the eastern coast from Shuwaymiyah to Mahut and Haima, into the network to be supplied by the Duqm power generation plant.
Duqm is currently served by a 67 MW diesel-fired plant owned and operated by RAECO. This capacity is proposed to be augmented to around 147 MW by 2017, which is deemed sufficient to meet projected electricity demand in and around the Duqm Special Economic Zone (SEZ) until 2019.
"OPWP expects to complete the Duqm study in 2014, in order to support an expected procurement action that would lead to a Duqm IPP to begin operation around 2018. At this stage, OPWP expects that this plant would have capacity in the range of 300 MW to 400 MW, and without a transmission interconnection with the MIS, though that could occur in the future depending upon demand development. This scale of plant capacity, in combination with the planned RAECO plants, would meet requirements under all three demand scenarios through 2020, and provide time to observe the pace of demand development towards planning further capacity additions," said OPWP in a report outlining demand projections through to 2020.
In Musandam Governorate, OPWP has been requested by PAEW to procure an IWP with capacity of about 13,000 m3/d (3 MIGD) to provide potable water to Khasab City. A tender for the project is expected to be floated in Q3 2014, with commercial operation envisioned in Q4 2015.
Likewise, OPWP plans to support the procurement of an IPP in Musandam with a net capacity of 100 MW utilising dual fuel turbines. The IPP will be owned by a consortium led by Oman Oil Company and operated under a Power Purchase Agreement (PPA) for supply to the Rural Areas Electricity Company (RAECO).
Commercial operation is anticipated in Q4 2016.
© Oman Daily Observer 2014
