Hussam Technology Company L.L.C
S #1, Bldg. #169, Way #6105, Bausher
P.O.Box 793, Ruwi 112, Muscat
Sultanate of Oman
Tel / Fax: +968 2202 0959
Email: [email protected]
360° Review of Solar Market
Requirements to Create a Vibrant
Industry in Oman
Firas A H Al-Abduwani, PhD
12/05/2018 Hussam Technology Company
Agenda
• Overview of Oman’s Electricity Landscape
• Drivers for the adoption of alternative Electricity
generation sources
• What has been done to unlock the Solar Market
• Next steps in creating a Vibrant Industry
• Q & A
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Oman’s Electricity
Landscape
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Stakeholders
Source: MOG, ISFU
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Electricity generation
• Electricity generation 97.5% from
gas, rest mainly from Diesel
• Strongly coupled to water
desalination
• 4 separate networks
– MIS (North of Oman)
– DPC (South of Oman)
– RAECo (micro-grids, rural)
– PDO (Centre of Oman)
• Single Purchaser model
• Financial cost of electricity is
above 32bz/kWh (8c/kWh)
• Economical cost of electricity is
around 45bz/kWh (12c/kWh)
including gas opportunity cost
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Electricity Demand Profile
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Peak Demand (MW) 3,955 4,348 4,844 5,054 5,486 6,060 6,417 6,565 7,086 7,728 8,207 8,734 9,244 9,725
Average Demand (MW) 2,244 2,513 2,858 2,966 3,148 3,573 3,713 3,939 4,282 4,767 5,125 5,423 5,750 6,039
0
2,000
4,000
6,000
8,000
10,000
12,000
Po
wer
(M
W)
Year
Electricity Demand (MIS + DPC) in Oman (Historical up to 2016 and Forecast)
CAGR: 8.4%
CAGR: 8.8%
CAGR: 7.4%
CAGR: 6.8%
Source: OPWP 7 year statement 2016
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Types of Tariffs applied in Oman
• Permitted tariffs (residential average less than 14bz/kWh 3.5c/kWh)
– Subsidised by the government directly in bearing part of
the electricity bill (up to 67%)
– Subsidised by the government indirectly on the fuel
subsidy (or loss of opportunity) to the generators
• Cost Reflective tariffs (average less than 28bz/kWh 7.0c/kWh)
– Apply to large consumers in the industrial, commercial
and government sector who consume more than
150MWh/yr
– Subsidised by the government indirectly on the fuel
subsidy (or loss of opportunity) to the generators
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Permitted Tariffs
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Cost Reflective Tariff
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Cost Reflective Tariff
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• BST for MIS network. DPS and RAECo have different BST tables
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Drivers for Energy Mix
Diversification
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Utilisation of Gas
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Source: MECA, MOG
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Energy Mix Diversification Drivers
• Drivers
– Potential limitations in the gas supply
– Greater value for gas from alternative uses
– Environmental commitments
• Prohibitors
– LCoE
– The right to industrialisation
– Current tariff & subsidy structure
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What has been done for
Solar Market?
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Developments in Solar Market
• 300kW IPP rural project
by RAECo
• 700kW grid connected
project by Oman
Botanical Gardens
• Shell announcing Solar
into Schools gift
• AER launching Sahim 1
(Small-scale grid-
connected PV plant
regulations)
Slide 15 of 22
Source: Shell Solar into Schools
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Developments in Solar Market
• PAEW setting a RE target (10%
of energy use by 2030)
• OPWP announcing first 500MW
PV tender
• PDO announcing first 100MW PV
tender
• DCRP approving a SS-GC solar
training program (BP sponsored)
• AER announcing work on Sahim
2
• ISFU’s Energy Labs
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Developments in Solar Market
• Policies: 2025, 2035 targets
• Regulations: Sahim 1 launched, Sahim 2 under development
• Local demand (utility scale): OPWP, PDO tenders
• Local demand (small scale): Primarily CSR, 500kW+
• Capability development (soft skills): Shell, BP, others
• Capability development (manufacturing): intentions
• Financial tools: limited
• Ease of business: teething problems being resolved
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What’s next?
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Suggested Developments
• Policies: Setting a small scale target – contribute to job creation
• Regulations: Use gas savings tool for beyond residential
• Local demand (utility scale): ISFU Labs unlocked a lot
• Local demand (small scale): Prod C&I not just Resi
• Capability development (soft skills): National Training Fund?
• Capability development (manufacturing): active
networking session
• Financial tools: dedicated cross-border learning sessions
• Ease of business: GCC wide PV Professional certification
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Questions & Answers
The future will be bright!
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Hussam Technology Company L.L.C
S #1, Bldg. #169, Way #6105, Bausher
P.O.Box 793, Ruwi 112, Muscat
Sultanate of Oman
Tel / Fax: +968 2202 0959
Email: [email protected]
Thank you!
Some of our delighted clients
12/05/2018 Hussam Technology Company Slide 23 of 22
