Muscat: Nama Group held the last meeting with stakeholders to present the final results and the study proposals based upon the memorandum of understanding for the grid interconnection project between the north and south areas of the Sultanate.
The meeting was held in the presence of Yahya bin Said Al Jabri, Chairman of the Special Economic Zone Authority of Duqm (Sezad); Nasser bin Khamis Al Jashmi, Undersecretary of the Ministry of Finance; Hassan bin Mohammed Al Lawati, Chairman of Nama Group; Eng. Omar bin Khalfan Al Wahaibi, Chief Executive Officer of Nama Group; Qaisbin Saud Al Zakwani, Executive Director of Authority for Electricity Regulation; Dr Badar bin Saud Al Kharusi, PDO Infrastructure Director; and the chairmen, board members and CEOs of Nama Group companies.
The memorandum of understanding (MoU) was signed between Nama Group and PDO in April 2016 to study connecting the electricity networks between the north and south of the Sultanate with 400KV high voltage lines to improve the security of the electricity network in the Sultanate and to participate in developing resources for the generation of electricity. The project aims at reducing generation investments and developing the optimal use of fuel and natural gas.
The agreement also included the formation of a technical team from Nama Group, represented by Oman Electricity Transmission Company (OETC), Oman Power and Water Procurement Company (OPWP), and Rural Areas Electricity Company, in addition to Petroleum Development Oman (PDO). The study was conducted in several stages, starting with collecting information, selecting options for connection, then studying the cost and feasibility of the options presented, and finally conducting the business analysis necessary to choose the best options and the mechanism of implementation.
Those at the meeting discussed the benefits of the interconnection project, which in turn will achieve strategic and economic objectives at the Sultanate-level in the near and long term. It will link the Main Interconnected System (MIS) of Nama Group in the north with the Duqm industrial area and the Petroleum Development Oman network in the central region of the Sultanate, as well as Nama Group network in Dhofar. The project will enable the parties to trade electricity in an efficient and economic manner, improve future planning of electricity, reduce the required reserve for the electrical network of each party and reduce the fuel needed for electricity generation. This will contribute directly to the conservation of natural resources and the development of the Sultanate. The project will also enable the grid to deal with emergencies and access to areas where the development of renewable energy projects is possible.
The study concluded that the economic and strategic feasibility of the implementation of the project will be directly reflected in raising the efficiency of the electricity system in Oman, in general, and benefiting all parties involved, in particular, at an estimated cost of OMR500 million. All parties agreed to sign an agreement to start the necessary procedures for the project, which is expected to be completed within five years.
"We are proud of such integrated initiatives that will contribute to the advancement of the nation’s economic development. The industrial zone in Duqm will be one of the largest beneficiaries," said Yahya bin Said Al Jabri, Chairman of Sezad .
"It will help to secure electricity in a safe and efficient manner and reassure investors of the strength, reliability and efficiency of the energy system in the Sultanate. The project will help to achieve our objectives of making the Duqm region attractive and promising major investments and projects," he added.
"We are always driving to be a leading reference in utility services by developing strategies and projects that serve the electricity system through initiatives and best methods, systems and practices which contribute to the sustainable development and the future vision of the Sultanate," said Eng. Omar bin Khalfan Al Wahaibi, Chief Executive Officer, Nama Group.
"I would like to thank all who participated in this project in general, and employees of Nama Group from Oman Electricity Transmission Company, Oman Power and Water Procurement Company and Rural Areas Electricity Company for their work towards our development and the prosperity of Oman,” he added.
"The initiative has started with the knowledge and technical capabilities of making the electrical network in the Sultanate a pioneering model. We achieved 99 per cent consecutively in the past years in the OETC Grid efficiency in the north and south of the Sultanate," said Eng. Ali bin Said Al Haddabi, Chief Executive Officer of Oman Electricity Transmission Company.
"This will improve our confidence that this project will be a great support in making the network more efficient to meet the growing demand for electricity and keep abreast of technological developments in this area,” he added.
Through its initiatives and projects, Nama Group strives to contribute actively to advancing development in all fields and implementing a common vision for the future of Oman, as well as achieving development and prosperity in the country.