14 July 2016
MUSCAT: Seeking to keep pace with the inexorable growth in domestic demand for electricity and water, the Oman Power and Water Procurement Company (OPWP) -- the sole procurer of new power generation and water desalination capacity in the Sultanate - has unveiled plans for the implementation of a string of major projects over the next seven years involving several billions of dollars in potential investment. Around 2,700 megawatts (MW) of new generation capacity is planned to be brought into operation in the year 2022, with the procurement process due to kick off in 2017, according to the wholly government owned utility.
Significantly, the tender for this new capacity will be floated under a new procurement methodology that allows existing, out-of-contract plants to compete for new P(W)PAs (power/water purchase agreements) with bidders for new Independent Power Projects (IPP) plants. The new procurement methodology is currently under development, the utility revealed in its 7-Year Outlook Statement (covering the 2016-2022 timeframe) issued here yesterday.
In part, the proposed new capacity aims to tide over any shortfall in the required generation capacity when around 1900 MW of existing capacity falls out of contract, according to OPWP. "The aggregate capacity of plants that will be out-of-contract in 2022 is about 1900 MW, although potentially not all of this capacity will participate in the tender. OPWP expects that at least 800 MW of the total capacity need would be procured as new IPP capacity," the utility explained.
To help meet this capacity shortfall, OPWP has already firmed up plans for a new Independent Power Project (IPP) sized at around 800 MW and slated for commercial operation in January 2021. This IPP will be tendered out via the existing procurement methodology, the utility said.
"Prospective sites and infrastructure requirements are being evaluated in collaboration with stakeholders such as Oman Gas Company (OGC) and Oman Electricity Transmission Company (OETC). OPWP expects to select the site and to initiate the procurement process with a request for qualifications (RFQ) in Q3 2016, subject to regulatory approval," the utility noted.
Peak power demand in the Main Interconnected System (MIS), which covers much of the northern half of the Sultanate, is expected to grow at around eight per cent annually, from 5565 MW in 2015 to 9529 MW in 2022, according to OPWP. Energy consumption is expected to grow from about 28 terawatt-hours (TWh) in 2015 to 50 TWh in 2022, reflecting an average annual increase of 8 per cent.
Water demand: Faced with equally strong demand growth in potable water supply, OPWP plans to procure two new Independent Water Projects (IWP), in addition to those that are currently in varying stages of construction and procurement. Citing demand projections made by the Public Authority for Electricity and Water (PAEW), it has announced the need for a new IWP of 300,00 cubic metres/day (m3/d) capacity (equivalent to 6 million imperial gallons per day -- MiGD). Planned for commercial launch in 2021, the new IWP will serve growing demand primarily in the Muscat zone, OPWP said, adding that the procurement process will be initiated this year, following site selection in collaboration with PAEW.
Additional capacity of about 200,000 m3/d (44 MIGD) is required in the North al Batinah governorate in 2022, when the existing Sohar-I multi-stage flash (MSF) units reach the end of their contract, according to OPWP. It expects to initiate the procurement process in 2017.
In other near-term procurement plans, a new desalination plant is planned at Ashkharah in al Sharqiyah governorate, with capacity of 80,000 m3/d (17.6 MIGD). "This project is expected to be developed in two phases of 40,000 m3/d (8.8 MIGD). The first phase is to be completed in 2019 and the final phase to be completed in 2020. OPWP plans to tender the project in Q1 2016 for award in Q4 2016," OPWP said.
Also slated for procurement are IWPs in Duqm [60,000 m3/d (13.2 MIGD)] and Khasab [16,000 m3/d (3 MIGD]. Both projects are expected to be brought into operation by Q4 2019.
A subsidiary of Nama Group, OPWP has also recently completed procurement of several projects which are now under construction. They include Ibri IPP (1520 MW), Sohar III IPP (1720 MW), Barka IV Desalination Plant (62 MIGD), Sohar III Desalination Plant (55 MIGD), and temporary water desalination plants at Qurayat (1.8 MIGD) and Aseelah (2.2 MIGD).
MUSCAT: Seeking to keep pace with the inexorable growth in domestic demand for electricity and water, the Oman Power and Water Procurement Company (OPWP) -- the sole procurer of new power generation and water desalination capacity in the Sultanate - has unveiled plans for the implementation of a string of major projects over the next seven years involving several billions of dollars in potential investment. Around 2,700 megawatts (MW) of new generation capacity is planned to be brought into operation in the year 2022, with the procurement process due to kick off in 2017, according to the wholly government owned utility.
Significantly, the tender for this new capacity will be floated under a new procurement methodology that allows existing, out-of-contract plants to compete for new P(W)PAs (power/water purchase agreements) with bidders for new Independent Power Projects (IPP) plants. The new procurement methodology is currently under development, the utility revealed in its 7-Year Outlook Statement (covering the 2016-2022 timeframe) issued here yesterday.
In part, the proposed new capacity aims to tide over any shortfall in the required generation capacity when around 1900 MW of existing capacity falls out of contract, according to OPWP. "The aggregate capacity of plants that will be out-of-contract in 2022 is about 1900 MW, although potentially not all of this capacity will participate in the tender. OPWP expects that at least 800 MW of the total capacity need would be procured as new IPP capacity," the utility explained.
To help meet this capacity shortfall, OPWP has already firmed up plans for a new Independent Power Project (IPP) sized at around 800 MW and slated for commercial operation in January 2021. This IPP will be tendered out via the existing procurement methodology, the utility said.
"Prospective sites and infrastructure requirements are being evaluated in collaboration with stakeholders such as Oman Gas Company (OGC) and Oman Electricity Transmission Company (OETC). OPWP expects to select the site and to initiate the procurement process with a request for qualifications (RFQ) in Q3 2016, subject to regulatory approval," the utility noted.
Peak power demand in the Main Interconnected System (MIS), which covers much of the northern half of the Sultanate, is expected to grow at around eight per cent annually, from 5565 MW in 2015 to 9529 MW in 2022, according to OPWP. Energy consumption is expected to grow from about 28 terawatt-hours (TWh) in 2015 to 50 TWh in 2022, reflecting an average annual increase of 8 per cent.
Water demand: Faced with equally strong demand growth in potable water supply, OPWP plans to procure two new Independent Water Projects (IWP), in addition to those that are currently in varying stages of construction and procurement. Citing demand projections made by the Public Authority for Electricity and Water (PAEW), it has announced the need for a new IWP of 300,00 cubic metres/day (m3/d) capacity (equivalent to 6 million imperial gallons per day -- MiGD). Planned for commercial launch in 2021, the new IWP will serve growing demand primarily in the Muscat zone, OPWP said, adding that the procurement process will be initiated this year, following site selection in collaboration with PAEW.
Additional capacity of about 200,000 m3/d (44 MIGD) is required in the North al Batinah governorate in 2022, when the existing Sohar-I multi-stage flash (MSF) units reach the end of their contract, according to OPWP. It expects to initiate the procurement process in 2017.
In other near-term procurement plans, a new desalination plant is planned at Ashkharah in al Sharqiyah governorate, with capacity of 80,000 m3/d (17.6 MIGD). "This project is expected to be developed in two phases of 40,000 m3/d (8.8 MIGD). The first phase is to be completed in 2019 and the final phase to be completed in 2020. OPWP plans to tender the project in Q1 2016 for award in Q4 2016," OPWP said.
Also slated for procurement are IWPs in Duqm [60,000 m3/d (13.2 MIGD)] and Khasab [16,000 m3/d (3 MIGD]. Both projects are expected to be brought into operation by Q4 2019.
A subsidiary of Nama Group, OPWP has also recently completed procurement of several projects which are now under construction. They include Ibri IPP (1520 MW), Sohar III IPP (1720 MW), Barka IV Desalination Plant (62 MIGD), Sohar III Desalination Plant (55 MIGD), and temporary water desalination plants at Qurayat (1.8 MIGD) and Aseelah (2.2 MIGD).
© Oman Daily Observer 2016
