Saturday 20 / April / 2024
Muscat: A techno-economic feasibility study on a 1,800-megawatt (MW) capacity coal-fired independent power project (IPP) planned by Oman Power and Water Procurement Company (OPWP) will be ready by next month and the same will be submitted to higher government authorities for approval, said Yaqoob bin Saif Al Kiyumi, chief executive officer of OPWP.
Speaking to journalists on the sidelines of a signing ceremony to build a 50 MW wind mill, Al Kiyumi noted that his company has almost completed an environmental impact study for the Sultanate’s first coal-fired independent power project.
Environmental aspects
“The feasibility and environmental aspects will be taken into consideration while selecting the technology. There are several developments in technology for coal-based power plants. There are a lot of improvements on the environmental side as well. Countries can have a coal-powered power plant within city limits,” added Al Kiyumi.
Al Kiyumi noted that the total capacity of 1,800 MW will be developed in different phases, depending on the demand for electricity in the country. Peak demand for electricity within the main interconnected system in Oman is projected to increase at an annual average rate of 6 per cent—from 5,920 MW in 2016 to 8,960 MW in 2023, according to the seven-year outlook report released by OPWP few months ago.
OPWP, which oversees the development of power and water capacity in Oman, issued a Request for Proposals (RfP) in April, inviting qualified international consultants to bid for its contract to provide financial and commercial advisory services linked to the development of the coal-based IPP against a competitive tender.
Although the preferred location is Duqm, a final decision on the location is yet to be taken, Al Kiyumi said. “If we locate the project in Duqm, it can meet demand in both the southern and northern regions of the country.”
Oman is looking for alternative sources of fuel for power plants, including renewable energy, due to shortage of natural gas, which is a major shift in the policy on energy mix.
The revival of coal as an energy resource comes nearly six years after the government scrapped a proposal for the establishment of the Sultanate’s first coal-based Independent Water and Power Project (IWPP) at Duqm. “We are working on a detailed evaluation to locate the project in a single location or multiple locations,” noted Al Kiyumi.
Solar project
Referring to a proposal to build the country’s first major commercial solar power project, Al Kiyumi said the envisaged capacity of the project would be much higher than an initial plan of 200 MW capacity. “It will have a more than 200 MW capacity. We have not finalised the capacity, but it will be in hundreds of megawatt capacity,” he said, adding; “It will be one of the biggest projects in the region.” OPWP is working on preparing tenders for qualifying companies to participate in the bid. “Before the end of this year, we will issue a request for qualification for the solar project.” The location of the project could be in Adam or Ibri or even Manah.
