1. by: Mohammed Al Mahrouqi PAEW Chairman
الهيئة العـامة للكهـرباء والميـاه
Public Authority for Electricity & Water
Electricity and Water Sector in Oman 3rd Oman Economic Forum April 2012
by:
Mohammed Al Mahrouqi
PAEW Chairman
Public Authority for Electricity and Water

2. Agenda Introduction about PAEW Water sector in Oman Electricity Sector
Renewable Energy
Public Authority for Electricity and Water

3. PAEW strategic objectives
To secure the production of potable water in the Unrelated Water Sector in accordance with the Oman standards and proportionate to the expansion of development and population growth.
To activate the Government's policy in respect of securing electricity supply to the greatest portion of society.
To activate and consolidate Government policy in respect of the development of both the unrelated water and the electricity and related water sectors and to promote them and utilise technology in these two areas.
To encourage the private sector to invest in both the unrelated water and the electricity and related water sectors.
To develop human resources in the Authority.
Public Authority for Electricity and Water

4. PAEW Water Coverage Area
Public Authority for Electricity and Water

5. PAEW’s water supply system
Muscat Governorate
Regional areas
Population: 735,000
230 km of transmission pipeline
2,106 km of distribution pipeline
Approximately 143,000 consumer accounts in 2010
Population: 1,709,000*
1,900 km of transmission pipeline
2,900 km of distribution pipeline
Approximately 94,000 consumer accounts in 2010
Total Consumption 102 Mm3/year
Note: * Excluding Dhofar region and Sohar Wilayat
Public Authority for Electricity and Water

6. PAEW’s water supply system
Seawater desalination represents 70% of the total drinking water production, of which 10% is produced by PAEW through approximately 30 RO
Wells provide 30% of the total water supply in the country (less than 10% in Muscat)
90% of the water is distributed through pipes and 10% through tankers
Public Authority for Electricity and Water

7. Growth in Water Demand and Supply
Interconnected Zone
Source - Strategic Business Planning: Master Plan , PAEW- (VEOLIA Water) , Version 0.1, Jan 2012
Public Authority for Electricity and Water

8. Capital Program - Infrastructure
Public Authority for Electricity and Water

9. IWP Water projects : Total Investment required 720 M USD
Al Ghubra IWP, capacity of 191,000 M3/d , COD by
Al Suwayq IWP, capacity of 225,000 M3/d , COD by
Quraiyat IWP, capacity of 180,000 m3/d, COD 2018.
Wadi Dhiqa Treatment Plant, Capacity of 67,000 m3/d, COD by 2015.
Total Investment required 720 M USD

10. Oman Electricity Business Structure - MIS
Oman Power & Water
Procurement Company SAOC
Muscat Electricity Distribution Company SAOC
Majan Electricity Company SAOC
Mazoon Electricity Company SAOC
PWP pays Production Facilities for
Capacity and Output in accordance with terms of PPA/PWPA
Ancillary Services
United Power Company SAOG
Al Rusail Power Company SAOC
Wadi Jizzi Power Company SAOC
Al Kamil Power Company SAOG
ACWA Power Barka SAOG
Al Ghubrah Power & Desalination Company SAOC
Others (Sohar II, Barka III and Sur)
Direction of payments
Discos pay PWP for
bulk purchases of electricity charged at a cost reflective Bulk Supply Tariff (BST);
Electricity BST includes PWP’s costs of electricity procurement activities
Oman Electricity Transmission Company SAOC
Production Facilities & Others pay OETC for
Connection to Transmission System
Discos pay OETC for
Connection to OETC’s Transmission System (Distribution business)
Use of OETC’s Transmission System (Supply business)
Water Departments
Water Departments pay PWP
for bulk purchases of desalinated water charged at a cost reflective Bulk Supply Tariff (BST);
Water BST includes the PWP’s costs of water procurement activities
Sohar Power Company SAOC
All intra sector transactions: (i) regulated & (ii) cost reflective (no direct subsidy)
Subsidy
Customers
SMN Barka SAOG
Public Authority for Electricity and Water

11. Electricity Sector - Ownership
Private Investors
Public Shareholding
Ministry of Finance
65 %
ACWA Power Barka SAOG
35 %
100 %
0.01 %
65 %
Al Kamil Power Company
35 %
Electricity Holding Company SAOC
60 %
United Power Company
40 %
99.99 %
65 %
Sohar Power Company
3 %5
Ghubrah Power and Desalination Company
65%
Rusail Power Company
35 %
Oman Power and Water Procurement Company SAOC
65 %
Barka II Power Company
35 %
Rural Areas Electricity Company SAOC
Wadi Jizzi Power Company
100 %
Sohar II Power Company
Muscat Electricity Distribution Company
100 %
Barka III Power Company
Mazoon Electricity Company
Key:
100 %
Sur Power Company
Majan Electricity Company
100 %
Sembcorb (Salalah IWPP)
Remains in Government ownership
Oman Electricity Transmission Company SAOC
Slated for privatization
Dhofar Power Company SAOC
Public Authority for Electricity and Water

12. Expected Electricity Consumption - MIS
Projected Compound
Growth Rate 8%
Public Authority for Electricity and Water

13. Consumption Breakdown - MIS
Public Authority for Electricity and Water

14. Privatization Trend in Electricity and Related water Sector (MW of generation capacity)
2.6 Billion Omani Rials Private Sector Investment
(6.7 Billion USD)
100 per cent Private Sector Ownership
April 25
Public Authority for Electricity and Water

15. Future Key challenges Rapid Growth
Subsidized electricity permitted tariff
Fuel availability & cost Uncertainty
Public Authority for Electricity and Water

16. New IPP projects :
New green-field IWPP plant in Salalah, capacity of 445 MW, COD 2012
Two new green-field IPPs in Barka & Sohar , capacity of 745 MW each, COD by 2013.
New green-field IPP plant in Sur, capacity of 2000 MW, COD 2014
New green-field IPP plant in Musandam, capacity of 120 MW, COD 2014
Projects under study:
Duqum IWPP
Salalah IPP (Phase II)
OPWP 7-year statement is available on

17. Renewable Energy in Oman
The Government of Oman has clearly stated its support for the implementation of renewable energy initiatives in Oman
A ministerial committee has been established to oversee and coordinate efforts
The Authority for Electricity Regulation (AER) commissioned a study to investigate the potential for renewable energy projects in the electricity sector. The full study is available on AER web site
The Public Authority for Electricity and Water is taking steps to implement solar and wind energy projects, to coordinate efforts to identify the need for research and development and to identify the need for policy and other support mechanisms
Oman Power and Water Procurement (OPWP) is collecting data from two sites (at Manah and Adam) to support development of future solar projects. Preliminary data available on OPWP web site,
Public Authority for Electricity and Water

18. Study on Renewable Energy Resources - 2008
Objectives:
To provide an overview of renewable sources of energy in Oman & the potential use of renewable energy for electricity production
To provide a platform for developing renewable energy policies for Oman
Findings:
Significant potential from: Solar &Wind
Limited potential from: Biogas, Geothermal &Wave
Public Authority for Electricity and Water

19. Large Scale Solar Power Project
Feasibility Study
Market structure and regulatory framework
Selection of optimum location
PPA structure
Confirmation of current power capacity
Competition Process
Tendering process
Public Authority for Electricity and Water

20. RE way forwarded Capacity Building Benchmark/Knowledge sharing
Policy & Strategy
Project Implementation
Capacity Building
R & D
Industrial
Human Resources
Pilot Projects (RAECO)
100 – 200 MW Solar Plant (Grid Connected)
Wind Monitoring Program
Wind farm
Green Buildings
University Program
Engineering
and O & M Skills
3. Reservoir & Development
4. Utilities experience
Developing Policy for R.E development
R & D Policy
Regulatory review
R.E Desalination
Hybrid Solutions
Solar Cooling
Focused research on specific technologies
Row material extractions
Manufacturing added value
Benchmark/Knowledge sharing
Public Authority for Electricity and Water

21. Key Strategic Initiatives undertaken by PAEW
Energy Balance & Fuel Diversity:
Developing Long term electricity Plan
Diversifying Sources of Fuel
Promoting fuel efficiency – conversions to CCGT
Renewable Energy & Efficiency Initiatives:
Large Scale Solar Plant
Pilot Projects
Energy Efficiency & Conservation
Research & Development
Public Authority for Electricity and Water

22. Thank you
Public Authority for Electricity and Water