Oman to advance key power, water schemes in 2025
MUSCAT: Beyond its commitment to procuring new renewables-based capacity in line with nationally-mandated targets, Nama Power and Water Procurement Company (PWP) — the sole procurer of capacity and offtaker of output — is embarking on a number of initiatives during 2025, aimed as reinforcing the security, efficiency and reliability of electricity and potable water supply over the long term.
PWP Chief Executive Officer Ahmed bin Salim al Abri said the initiatives seek to build on a 'year of successful achievements' in 2024, designed to support sustainable energy development, centring primarily on renewable energy resources.
'Following Oman Vision 2040 and the Renewable energy target set for 2030 and 2040, PWP is continuing to accelerate diversifying its energy generation portfolio and develop renewable energy projects,' Al Abri said.
'PWP focuses on diversifying renewable energy resources by optimising the availability of natural resources and a commitment towards sustainability. The favourable economic costs of wind and solar PV technologies drive renewable project development. The year 2024 has been marked by a significant number of renewable energy projects being tendered, completed, or commencing acceptance testing,' he added in a foreword to PWP's 2024 Annual Report.
Key among the portfolio of initiatives lined up for advancement in 2025 is the Optimum Energy Mix and Energy Storage Options Study. The strategic study, undertaken in coordination with a number of stakeholders, has modelled and analysed scenarios relating to the transition path for Oman's generation mix till 2040, with a particular focus on the transition from today's predominantly gas-based system to a mixed system.
'The study confirmed that the targets set in Oman Vision 2040, by the Ministry of Energy and Minerals, are achievable while meeting the economic purchase obligation. The energy storage technologies will play an important role to provide ancillary services to the grid with higher penetration of renewable,' the CEO noted.
Ahmed bin Salim al Abri - Nama PWP CEO
Also on PWP's list of priorities for 2025 is the completion of a key Demand Response Study. Stage 1 of this strategic study explored the potential of the demand response role as part of the system dynamics, with a particular focus on large customers and their contribution to system demand. The study explored different models that potentially applicable to Oman's system.
Following the completion of the first stage, Stage 2 is proposed to be initiated in 2025 with a focus more on the trial and modelling of some customers' behaviour (proof of concept) and setting up the structure to implement the demand response widely in the system.
Likewise, Oman's groundbreaking Electricity Spot Market, which went live in January 2022, will be the subject of another annual review in 2025 per Market Rules. Audits for 2023 and 2024 were successfully conducted, with the Market Management System achieving 100 per cent availability throughout 2024.
'Moreover, the market has effectively integrated the registration of the new Pool Based Power Contract plants contracted in 2024, including Al Rusail Power Company SAOC (Al Rusail IPP), Manah Power Company SAOC (Manah IPP) and Sembcorp Jinko Shine Company SAOC (Manah 2 solar IPP),' said the CEO in his foreword.
However, PWP's primary focus during 2025 will continue to remain on the procurement of renewable energy and water projects. Topping the list is the 500 MW solar PV Independent Power Project (IPP) planned in Ibri — also known as Ibri-III Solar — with an investment of RO 155 million. An award is anticipated this year.
Other power and water schemes that will make headway in their delivery are: the 280MW solar PV project at Al Kamil in Al Sharqiyah South Governorate; the award of new contracts for existing generators with Water Purchase Agreements (WPAs) expiring in 2027 (also known as Water 2027); the release of RfPs for Power and Water 2028-2029 project, with a plan to award a contract this year; and the release of the RfQ and RfP for the Water 2030 project.
Furthermore, awards for all five wind projects currently under procurement with a combined investment of around RO 500 million are anticipated in 2025. The five Wind IPPs are planned at: Jaalan Bani bu Ali (91-105 MW), Duqm (234-270 MW), Mahout Wind I (342-400 MW), Dhofar Wind II IPP (114-132 MW) and Sadah (81- 99 MW). They are slated for commercial operation by 2027.
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