Utilities
From The Report: Oman 2013
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Increasing demand for power and water and an expanding role for private sector firms are the two most significant factors currently affecting Oman’s utilities sector. This is motivating the government to expand capacity, which in turn is bringing about a restructuring in the sector, creating new opportunities for private and international firms. Efforts are also under way to encourage energy conservation and develop renewable energy sources and green building practices to increase power and water efficiency. Furthermore, international partners have shown themselves willing to invest in solar energy projects, developing the sector through research and educational institutions.

This chapter includes an interview with John Cunneen, Executive Director for the Authority for Electricity Regulation (AER).

Articles from this Chapter

Overview

Connecting the dots: Growing demand for water and power means numerous opportunities
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Rapid changes are under way in Oman’s utilities sector, with further adjustments expected over the next several years. Increasing demand for power and water and an expanding role for private sector firms are the two most significant factors affecting the industry. Much of the increased demand stems from a growing, yet relatively spread out population, in addition to a surge in industrial development over the past four decades. Demand The Oman Water and Power Procurement Company (OPWPC) estimates…

Interview

Pursuing alternatives: OBG talks to John Cunneen, Executive Director, Authority for Electricity Regulation (AER)
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Interview: John Cunneen As sector regulator, how does AER view the performance of the electricity sector since the market restructuring that took place in 2005? JOHNCUNNEEN: The electricity sector has expanded rapidly since 2005 to keep pace with the sultanate’s growing demand for electricity. The 18.5 TWh supplied to customers in 2011 was 95% higher than in 2005, an increase driven by 37% more customers and a 33% rise in average MWh consumption per account. This growth supports the introduction…

Analysis

Turn it up: A number of new projects are set to take off
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Increasing the country’s electricity supply will remain a major priority for Oman’s power sector through the foreseeable future. Indeed, the Oman Power and Water Procurement Company (OPWPC) reported in its most recent annual forecast that peak power demand across the country should rise from 4193 MW in 2011 to 7271 MW in 2018 – a substantial rise of around 73% over the seven-year period. The Grid There are four electricity systems in Oman, and OPWPC forecasting focuses on the two largest:…

Analysis

Expanding the grid: Upgrading existing capacity is just as important as building new facilities
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With power demands continuing to rise in Oman, a range of significant efforts are under way to increase generation capacity. Providing more power to a greater number of people, however, requires more than simply building and expanding power plants; electric-power transmission upgrades are also needed. This objective is the focus of a number of national projects. Privatisation Plans There are two primary grid systems in the country, and the Oman Electricity Transmission Company (OETC) is the sole…

Analysis

Testing the waters: Desalination, increased efficiency and public awareness are all part of the government’s programme to conserve resources
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As demand for water continues to rise in the sultanate, private and foreign investors are expected to play a greater role in the sector. Several projects are in the pipeline to increase supply, and private firms are taking the lead in a number of these developments. “The pace of building required to meet Oman’s increasing demand for water would be difficult to maintain without private and overseas investment,” said Mahmood Ibrahim Al Bahlani, senior planner of pricing and generation at the…