359 electricity projects worth OMR232m approved last year

Three hundred fifty-nine projects with a total value of around OMR232million were approved by licensed operators last year to enhance the electricity network in Oman.

  
03 August 2015
MUSCAT: Three hundred fifty-nine projects with a total value of around OMR232million were approved by licensed operators last year to enhance the electricity network in Oman.

According to the annual report of the Authority for Electricity Regulation for 2014, the projects were approved by Oman Electricity Transmission Company (OETC), Muscat Electricity Distribution Company (MEDC), Majan Electricity Company,Mazoon Electricity Company,Rural Areas Electricity Company (RAEC) and Dhofar Power Company (DPC).

"OETC accounts for 52.5 per cent of approved projects by value, which reflects the significant investment made to connect and transport electricity from new production facilities," the authority said in the report.

Mazoon accounts for 12 per cent of projects by value, RAEC for 11.5 per cent, MEDC 10.1 per cent, DPC 9.2 per cent and Majan 4.8 per cent.

Projects

According to the report, OETC approved 23 projects worth OMR121.44 million, while MEDC approved 35 projects with a total value of OMR23.29 million. The value of the 88 projects approved by Majan totaled OMR11 million, and 28 projects worth OMR27.68 million were approved by Mazoon.

In addition, the total cost of the 23 projects approved by RAEC amounted to OMR26.66 million, while 162 projects worth OMR21.37 million were approved by DPC.

In terms of regional investment, Muscat region accounts for 27.3 per cent (OMR63.3 million) of approved projects and Al Sharqiya 21.2 per cent (OMR49.0 million) due to significant network investments by OETC, Mazoon and RAEC in these regions.

The authority says that all regions benefited from Electricity and Related Water Sector investment in 2014 in line with the government's policy commitment to provide electricity and related water services throughout the Sultanate.

Customers

The report also showed that the number of electricity customer accounts in the Sultanate increased by 67,792, or 7.9 per cent from 859,392 in 2013 to 927,184 in 2014.

For the Sultanate as a whole, residential customers accounted for 69 per cent of the 67,792 increase in accounts and commercial customers for 27.8 per cent of the increase. Residential customers accounted for 75 per cent of all customer accounts in 2014.

Employment

Total electricity and related water sector employment (direct and contractor employees) increased by 10.5 per cent in 2014, reflecting a 1 per cent increase in direct employment (from 2,798 to 2,825) and a 15.4 per cent increase in indirect employment (from 5,479 to 6,322).

Omani nationals accounted for 90 per cent of direct employment in 2014 (higher than percentage reported as in 2013), and for 44 per cent of indirect employment, contributing to a sector Omanisation rate of 58 per cent.

More gas used

Gas consumption grew by 7.8 per cent last year to support increases in gross electricity and related waterproduction of 9.6 per cent and 2.6 per cent, respectively.

According to the annual report of the Authority for Electricity Regulation for 2014, the specific gas consumption of the Main Interconnected System (MIS) connected facilities fell to 283 Sm3/MWh in 2014 from 289 Sm3/MWh in 2013 (a 2.3 per cent reduction), and was 21 per cent lower than in 2005.

The Rural Areas Electricity Companyconsumed about 211,904,000 litres of diesel last year to support increases in electricity and related water production.

The Oman Power and Water Procurement Company (OPWP) had earlier estimated that gas consumption in the electricity and water desalination sector would rise from the current annual volume of 6.7 billion cubic metres to 10 billion cubic metres by 2020.

© Times of Oman 2015