Assessing the feasibility of introducing solar power into Oman’s existing power network.
The Situation
The demand for energy in Oman is increasing rapidly, due to a combination of a rising population and strong economic growth. Annual electricity demand growth reached a rate of 8-10%, reflecting the rapid expansion of industrial areas as the economy diversifies away from the oil and gas sectors. In response to this growing demand, the Government of Oman began examining renewable natural resources for the production of electricity.
The Oman Public Authority for Electricity and Water (PAEW) regulates and supervises electricity and water, policy settings, privatisation laws settings, development of the power and water sector and provides statistical studies and figures related to power and water sector.
PAEW wanted to investigate the viability of utilising solar power as a supply solution to addressing the energy needs of Oman into the future.
Approach
Advisian reviewed and evaluated a range of solar power plant technologies (such as parabolic trough, power tower, photovoltaic, etc.) that are commercially available and the range of their current application in power generation worldwide, including size, location and operating experience
Our experts provided advice on the commercial evaluation which included ownership structures and risk allocations, solar energy support mechanisms including feed-in tariffs, capital grants, tax incentives, loan guarantees, and renewable energy targets. Additionally, previous Independent Power Producer tendering processes in Oman were reviewed to advise the PAEW on its appropriateness for a solar power plant development.
Our team completed a site selection study based on typical criteria including solar insolation level, proximity to linears (transmission lines, natural gas, water sources, etc), zoning, land use, biological constraints and other considerations.
Results
The Advisian team generated preliminary conceptual designs including an extensive "Minimal Functional Specification" which will ultimately form a key element of the Agency Request for Bids from prequalified Independent Power Producers. Our consultants worked with the consortium team (WorleyParsons Group, Macquarie, Chadbourne & Parke) on financial modelling of the tariffs which were developed for various configurations inputting to the CAPEX and OPEX of the financial model.
