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EDITOR IN CHIEF- ABDULLAH BIN SALIM AL SHUEILI

New mechanism to support peak power demand in the Sultanate

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By Conrad Prabhu — MUSCAT: MAY 27 - Oman’s power sector authorities are weighing a new mechanism to help respond to spikes in electricity demand without the need for costly investment in new generation capacity.


The mechanism, known as ‘Demand Response’, is a strategy typically used by utilities to reduce or shift energy consumption from peak hours of the day — when the demand for electricity is the greatest — to leaner demand periods.


According to experts, the Demand Response (DR) mechanism allows large consumers to opt for non-essential loads at peak times under a pre-agreed arrangement with the customer against specific conditions of load, price and time intervals.


State-owned Oman Power and Water Procurement Company (OPWP) — part of Nama Group — says it is keenly looking at Demand Response as part of an array of prospective generation resources that can be tapped to help meet potential shortfalls in contracted capacity over the next seven years (2017-2023).


“OPWP expects that Demand Response (DR) can provide a significant and cost-effective resource towards reducing capacity requirements. In 2017, OPWP plans to evaluate tariff-induced demand impacts of the recently introduced Cost-Reflective Tariffs (CRTs),” the utility stated in its newly published Outlook Statement.


Significantly, the Demand Response initiative was successfully tested in a proof-of-concept trial held last August in coordination with the Public Authority for Electricity and Water (PAEW) and Ghubrah II Independent Water Project (IWP) in Muscat.


As part of the trial, the Ghubrah II IWP was shut down for a two-hour period (14:00 to 16:00), resulting in a reduction of approximately 25 MW in system demand over the period (equivalent to 50 megawatt-hours of energy).


OPWP says it is currently developing procurement processes that will allow Demand Response and capacity purchases from interconnects and industries to be considered as firm capacity alternatives to temporary generation.


The Demand Response programme is proposed to be expanded and then introduced in 2018, the utility said, noting that it expects Demand Response (DR) to become “an economical and effective resource” towards meeting capacity requirements.


Other prospective resources being considered by OPWP in meeting  supply shortfalls include: Temporary generation from rented, mobile generators; Capacity purchases from interconnected power systems or industrial self-generation; Non-committed capacity under the Spot Market; and Renewable energy projects.


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