Click the following link to download the study on Renewable Energy Resources - Oman:
5 April 2010:
Electricity Regulator announces Renewable Energy Pilot Projects Shortlist
The Authority for Electricity Regulation, Oman has confirmed a shortlist of six (6) renewable energy pilot projects, two (2) for immediate implementation and four (4) that may proceed following further discussion with the developers. The pilot project shortlist is:
Two (2) pilot projects will proceed to implementation subject to finalization of certain technical and contractual matters with the Developers and Rural Areas Electricity Company SAOC (RAEC). The two projects are:
(i) A 500 kW wind project in Masirah Island (Developer: Gulf Renewable Energy, a BOO project); and
(ii) A 100 kW PV solar project in Hij (incorporating 50 kW of thin film and 50 kW of mono crystalline) (Developer: Itochu Corporation a EPC project).
The Authority will engage with the developers of four (4) shortlisted projects that merit further and serious consideration to see if terms can be agreed to move the projects to implementation. These projects are:
(iii) A 4,200 kW wind project in Saih Al Khairat, a Wilyiat of Thumrait (Developer: Zubair/Tefirom/Suzlon, a BOO project);
(iv) A 292 kW solar project in Al Mazyonah (Developer: DSME/Conergy/Bahwan Engineering, a BOO project);
(v) A 1,500 kW project at location to be confirmed (Developer: Centrotherm Photovoltaics AG, Nvalue GmbH, Merit International, a BOO project); and
(vi) A 28 kW solar project in Al Mathfa incorporating battery storage capability (Developer: Phoenix Solar / Silver Circle, a BOO project).The six shortlisted projects offer 6.6MW of renewable capacity at an investment cost of some 8.1 million RO.
The six shortlisted projects, if implemented, would allow RAEC to replace 11GWh of annual diesel generation with renewable sourced electricity, this would reduce diesel fuel consumption by 3.1 million liters per year and avoid 8,298 metric tons of CO2 per year.
The six shortlisted projects offer economic benefits in the form of avoided costs of diesel generation and other potential benefits such as the transfer of knowledge and experience to Oman, capacity building within RAEC and other Oman entities and companies.
Announcing the shortlist the Authority’s Executive Director John Cunneen said:
“The Authority will engage with RAEC and the developers of the two projects shortlisted for immediate implementation to finalize the respective PPA and EPC contracts. Discussions with both developers have already taken place and we are hopeful electricity production will commence in 2011. For the other four shortlisted projects the Authority will engage with RAEC and the developers to see if agreement can be reached to move each project forward, but we are not in a position to say how long this will take.”
“The shortlisted pilot projects will provide valuable performance data on how renewable technologies perform under local conditions: this is a key objective of the pilot project initiative.”
“The Authority received proposals from 12 developers covering a total of 35 pilot projects with a potential aggregate capacity of around 48.7 MW. 2 project proposals are wind based with a total capacity of 4.7 MW. Proposals were received for 33 solar projects with aggregate capacity of 44 MW, of which 27 MW (61%) proposed PV technology and 17 MW (39%) CSP. The number of proposals submitted has exceeded our expectations”
“The Authority’s initiative has attracted strong international interest. In addition to Omani entities, proposals were submitted by developers from Japan, Turkey, South Korea, Holland, Germany, and the United States. The pilot project initiative has successfully attracted the attention of international developers to Oman.”
“The Authority is grateful to all developers who submitted pilot project proposals and is particularly grateful to RAEC for the assistance and support provided to developers and the Authority during the evaluation process.”
BackgroundIn 2008 the Authority published a Renewable Energy Study that confirmed the availability of solar and wind energy resources in the Sultanate. The Study made a number of recommendations for harnessing the Sultanates renewable resources including a recommendation that the Authority support the implementation of pilot projects in conjunction with RAEC diesel generation in rural areas. The Authority accepted the pilot project recommendation and invited developers to submit pilot project proposals for rural locations supplied by RAEC diesel generation.
The Authority has issued a detailed regulatory statement to confirm the present status of the pilot project initiative and to confirm a shortlist of six (6) renewable energy pilot projects. The statement also provides details of the evaluation methodology.
Click the following link to download the Report:
__________________________________________________________________________________________________________________________ 29 March 2009:
Electricity Regulator appoints consultants to assist review and approval of Sultanate's first Renewable Energy Pilot Projects Oman’s electricity regulator has appointed international consultancy firm COWI to assist with reviews and approval of renewable energy pilot projects. COWI’s appointment is part of a strategy implementing recommendations identified in the Authority’s renewable energy study published in May 2008. The study identified significant Solar and Wind energy potential in the Sultanate and recommended early implementation of small scale renewable energy pilot projects, initially in rural areas, to confirm the performance and efficiency of renewable technologies in local conditions. Pilot projects will also alert local and international developers to the Sultanate’s significant renewable energy potential.
Confirming COWI’s appointment, the Authority’s Chairman Dr Saleh Al Alawi said: “COWI’s appointment represents an important step forward in implementing the Authority’s strategy for the long term utilization of renewable energy in Oman. Publication of our renewable energy study last year attracted significant interest from international and local investors, some of whom submitted pilot projects to the Authority for review and approval –projects of varying sizes and that include both wind and solar technologies. “COWI’S appointment will accelerate the approval process and facilitate the early commencement of projects. Each project will be subject to a detailed technical, financial and economic review. While the Authority is keen to facilitate early implementation of renewable energy projects, we will only approve projects that are technically robust, do not risk the security of supply to customers and that have wider benefits. We are also mindful of the implications for electricity subsidy. “COWI has been asked to ensure each pilot project addresses the problem of resource intermittency and can be efficiently and effectively incorporated into an existing diesel system. “Pilot projects reviewed by COWI and approved by the Authority will immediately reduce fossil fuel use in rural areas and provide valuable information on factors such as solar intensity, wind speed consistency and turbulence in local conditions that will influence the performance and efficiency of renewable technologies. Information gathered from pilot projects will also help pave the way for the implementation of large scale renewable energy projects in the Sultanate – which is the long term strategic objective. “COWI will work closely with the Authority and the Rural Areas Electricity Company to facilitate the timely implementing of approved projects. The Authority is grateful to the Rural Areas Electricity Company for the excellent cooperation and support afforded to the pilot project initiative to date. “
Background – Authority’s Renewable Energy Strategy:
In May 2008 the Authority published a study commissioned to assess the Sultanate’s renewable energy potential. The study confirmed the Sultanate’s significant solar and wind potential. Towards the end of 2008, the Authority invited the Rural Areas Electricity Company (RAEC) to identify possible locations for diesel system hybrid pilot projects, and make information available for potential developers. Several international and local companies expressed interest in developing pilot projects within the preliminary framework developed by the Authority and after initial coordination with RAEC submitted renewable energy pilot project proposals to the Authority for approval.The Authority invited proposals from international consultants to evaluate proposed pilot projects submitted by developers. COWI will conduct comprehensive assessments of each proposed pilot project including economic and technical feasibility, site feasibility, the extent to which proposed technology is proven, and the overall conceptual design. COWI will also undertake initial environmental impact assessments at proposed locations. COWI will provide the Authority with evaluation reports for each pilot project and will make recommendations on project approval.
Background – Authority for Electricity Regulation:
The Authority for Electricity Regulation, Oman was established by Article (19) of the law for the regulation and privatization of the electricity and related water sector (the “Sector Law”) promulgated by Royal Decree 78/2004. The Authority is competent to regulate the electricity and related water sector pursuant to Article (2) of the Sector Law.