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EDITOR IN CHIEF- ABDULLAH BIN SALIM AL SHUEILI

Oman keen to harness benefits of power grid interconnection

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Oman Power and Water Procurement Company (OPWP), a member of Nama Group (formerly The Electricity Holding Company), says it is continuing to evaluate the potential for power trading with member states of the GCC via the GCC Interconnection Authority (GCCIA) set up by the bloc to facilitate, among other objectives, the commercial exchange of electricity.


The wholly government-owned utility, which is the sole procurer of electricity and related water capacity under the sector law, said it has also obtained the regulator’s green-light to factor in the potential benefits of GCC interconnection when assessing the adequacy of Oman’s generation capacity.


“OPWP will continue investigating the opportunities to participate in any visible pilot electricity trading activities with other GCCIA Member States in order to test and establish the necessary arrangements for firm capacity transactions. This would create an alternative option for short-term contingent capacity, for which OPWP has previously procured rental diesel generators when required,” said the procurer in its newly released 2016 Annual Report.


“Recently OPWP received an approval from the Authority for Electricity Regulation (AER) to consider the contribution of the GCCIA interconnection in calculating the requirements for both operating reserves and generation adequacy,” it noted.


The Sultanate joined the GCCIA in December 2014, enabling access to the power systems of other member states via the UAE interconnect. GCCIA membership provides access to generation and operating reserves, with tangible benefits to Oman both for planning and operations. The GCCIA is also developing mechanisms for commercial power trading among member states.


According to OPWP, the existing double circuit 220kV link connecting Oman’s Main Interconnected System (MIS) with the Abu Dhabi grid at Mahadha currently supports reliable transfers of up to 400 MW. However, performance tests have demonstrated its ability to carry up to 800 MW in emergencies. The link is being utilised actively to provide emergency reserves support to the benefit of Oman, the UAE, and other GCCIA member countries.


Importantly, harnessing the benefits of GCCIA membership is one of several ‘strategic initiatives’ outlined by OPWP for implementation over the short-term, the utility said in its Annual Report.


“OPWP has completed the (pilot) power exchange with Abu-Dhabi Transco in 2016 and is exploring opportunities for trading with other GCC Member States under the GCCIA umbrella,” said Hamdan bin Ali al Hinai, Chairman of OPWP, in a foreword.


Yet another initiative of strategic significance concerns the development of detailed market rules for the rollout of a wholesale electricity spot market in the Sultanate, the procurer said.


“The market is scheduled to begin operational trials in 2019 and commercial operation in 2020. The spot market for electricity will operate alongside the existing system of long-term Power Purchase Agreements (PPAs) and Power & Water Purchase Agreements (PWPAs). The market rules will be generally modelled on those that have been developed in other countries with certain modifications relevant to Oman,” it stated.


Conrad Prabhu


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