MUSCAT: The maiden annual report of the Oman Electricity Market (also known as the Spot Market) was issued here on Monday with officials characterizing the roll-out of this initiative – the first in the Middle East’s power sector – as “challenging” yet successful, on the whole.
Yaqoob bin Saif al Kiyumi, Chief Executive Officer – Nama Power and Water Company (rebranded recently from Oman PWP), described the launch of the Oman Electricity Market on January 1, 2022 as a “remarkable milestone” for the nation’s electricity sector.
“It was very challenging during COVID-19 to complete the project along with the Market Management System,” Al Kiyumi said in a foreword to 2022 Annual Report. “Nonetheless, the market was launched successfully in January 2022 to start this new journey for the energy sector in the Sultanate of Oman as the energy sector plays a vital role in a country’s economy.” State-owned Nama PWP – part of Nama Group - is the Market Operator of this new electricity spot market. It was established primarily to enable power generators with expiring Power Purchase Agreements (PPAs) to offer their surplus capacity via a competitive market process. The underlying objective was to help these generators increase the residual value of their plants upon the expiry of their PPAs.
Under the market rules, power purchases from these plants are undertaken by PWP through a short-term market run each day, with prices for each half-hour set each day based on what the generator concerned has offered to sell. Plants offering higher efficiency are prioritized in dispatch.
Significantly, the Oman Electricity Market recorded a total registered capacity of 8,032.83 MW for the year 2022. Total energy generated as part of this Market was 31.787 terawatt-hours (TW), out of which 4.61 per cent came from solar PV-based renewable power.
Power companies that registered their capacities under the Electricity Market were: SMN Barka Power Co (Barka II), Al Suwadi Power Co (Barka III), Rusail Power Co (Rusail I), Al Batinah Power Co (Sohar II), Shinas Power Company (Sohar III), Ad-Dhahirah Generation Company (Ibri I), Petroleum Development Oman (Auto-generator), Shams Ad Dhahira Generating Company (Ibri II), Phoenix Power Co (Sur I), ACWA Power Barka (Barka I), and Sohar Power Co (Sohar I).
Al Kiyumi credited a number of stakeholders for the Market’s successful run in the first year of operations. Besides lauding the role of the Market Advisory Committee, he also acknowledged the role of the Authority for Public Services Regulation (APSR), Oman Electricity Transmission Company (OETC), and the Market Operator and Power Procurer (roles assigned to Nama PWP itself).
“Looking at the future ahead, the Market faces several challenges as it continues to evolve and mature. We are confident that the Market structure, Market Rules and Market Management System provide a healthy platform for an efficient transition to the Market. We look forward to leveraging the Oman Electricity Market benefits and its contribution towards the effective liberalization journey of the electricity sector,” he added in conclusion.
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