23 May 2016
Muscat - With a memorandum of understanding (MoU) signed between Petroleum Development Oman (PDO) and two member companies of Nama Group on Monday a more integrated and co-ordinated power grid will come into existence across the country.

The MoU was signed at the opening of Oman Energy and Water Exhibition and Conference being held at the Oman International Exhibition Centre at Seeb.

"This agreement will establish a framework for a more efficient and co-ordinated national electricity grid by integrating the existing networks," said PDO Managing Director Raoul Restucci.

At present, there are four separate electricity supply networks --  the Main Integrated System in the North, the Dhofar System in the South, the Duqm System in the East and PDOs in Central Oman.

According to the MoU, the four networks will eventually be interconnected via a 400 kilovolt power transmission system and will enhance the security and reliability of the Sultanate's electricity network. This will enable them to share power reserves, co-ordinate electricity generation and planning, and access areas with high renewable energy potential.

The agreement also paves way for reducing the amount of gas needed for power generation facilities in the country, freeing it up for use elsewhere. The two member companies of the Nama Group are Oman Electricity Transmission Company (OETC), and Oman Power and Water Procurement (OPWP).

"Power interconnection between PDO and the main power grid will allow for joint planning for future power capacities in a manner that will reduce costs of the produced capacities. It will also provide new opportunities for utilisation of renewable energy between the two grids in addition to providing the gas needs in the Sultanate," said OPWP Chief Executive Officer Ahmad al Jahdami.

The MoU will also set up a technical support hub where experts from PDO, OPWP and OETC can share relevant technical and economic data and information -- and pave the way for co-operation on potential renewable energy development.

"PDO and our partners will be able to work together more effectively in ensuring the stability and security of the day-to-day running of the system and also during emergencies. If one part of the country needs more electricity, this makes it easier to transmit it from another part where there is less demand,"  Restucci said.

OETC Chief Executive Officer Ali al Hadabi said: "This MoU will provide the opportunity for studying the possibility of interconnecting the unified transmission grid which is owned by Oman Electricity Transmission Company and connecting it with PDO grids, and the possibility for extending high voltage lines to the south of the Sultanate in Salalah.

"At OETC, we consider this project as a viable and important project that will help us in the future to connect our existing grid in Dhofar-Salalah with the main grid in the North," he added.

PDO also signed a second MoU with the Public Authority for Electricity and Water (PAEW) which will include closer co-operation on PAEW's plans and projects for communities in PDO's concession area and the formation of a committee to supervise the process of distributing water to residents in the area (excluding Dhofar and Sohar).

The agreement will also cover the possibility of PDO advising on topics such as renewable energy, competency development and the development of small and medium enterprises (SMEs). Furthermore, the company will assist PAEW on Lean efficiency programmes and offer other technical support.

© Oman Daily Observer 2016