Transcript Presentation to the BOD

‫الهيئة العـامة للكهـرباء والميـاه‬
Public Authority for Electricity & Water
Electricity and Water Sector in Oman
3rd Oman Economic Forum
April 2012
BY:
MOHAMMED AL MAHROUQI
PAEW CHAIRMAN
1
Public Authority for Electricity and Water
‫الهيئة العـامة للكهـرباء والميـاه‬
Public Authority for Electricity & Water
Agenda
 Introduction about PAEW
 Water sector in Oman
 Electricity Sector
 Renewable Energy
2
Public Authority for Electricity and Water
‫الهيئة العـامة للكهـرباء والميـاه‬
Public Authority for Electricity & Water
PAEW strategic objectives
 To secure the production of potable water in the Unrelated




Water Sector in accordance with the Oman standards and
proportionate to the expansion of development and population
growth.
To activate the Government's policy in respect of securing
electricity supply to the greatest portion of society.
To activate and consolidate Government policy in respect of the
development of both the unrelated water and the electricity and
related water sectors and to promote them and utilise
technology in these two areas.
To encourage the private sector to invest in both the unrelated
water and the electricity and related water sectors.
To develop human resources in the Authority.
3
Public Authority for Electricity and Water
‫الهيئة العـامة للكهـرباء والميـاه‬
Public Authority for Electricity & Water
PAEW Water Coverage Area
Musandam Governorate
Al Batinah Region
Sohar
Al Buraimi Governorate
Muscat Governorate
Barka
Muscat
Ad Dhahirah Region
Sur
Ad Dhakhliyah Region
Ash Sharqiyah Region
Al Wusta Region
Dhofar Region
Salalah
Areas not included in PAEW’s service area
4
Public Authority for Electricity and Water
‫الهيئة العـامة للكهـرباء والميـاه‬
Public Authority for Electricity & Water
PAEW’s water supply system
Muscat Governorate
Regional areas
 Population: 735,000
 Population: 1,709,000*
 230 km of transmission pipeline
 1,900 km of transmission pipeline
 2,106 km of distribution pipeline
 2,900 km of distribution pipeline
 Approximately 143,000 consumer
 Approximately 94,000 consumer
accounts in 2010
accounts in 2010
Total Consumption 102 Mm3/year
Note:* Excluding Dhofar region and Sohar Wilayat
5
Public Authority for Electricity and Water
‫الهيئة العـامة للكهـرباء والميـاه‬
Public Authority for Electricity & Water
PAEW’s water supply system
 Seawater desalination represents 70% of the total
drinking water production, of which 10% is produced
by PAEW through approximately 30 RO
 Wells provide 30% of the total water supply in the
country (less than 10% in Muscat)
 90% of the water is distributed through pipes and 10%
through tankers
6
Public Authority for Electricity and Water
‫الهيئة العـامة للكهـرباء والميـاه‬
Public Authority for Electricity & Water
Growth in Water Demand and Supply
Interconnected Zone
1,400,000
Capacity/Demand (m3/d)
1,200,000
1,000,000
800,000
600,000
400,000
200,000
0
2012
2013
2014
2015
2020
2025
2030
-200,000
Total Available Capacity
Surplus/Deficit
Source - Strategic Business Planning: Master Plan , PAEW- (VEOLIA Water) , Version 0.1, Jan 2012
7
Public Authority for Electricity and Water
Demand: Average Day in Peak Week
2035
‫الهيئة العـامة للكهـرباء والميـاه‬
Public Authority for Electricity & Water
Capital Program - Infrastructure
8
Public Authority for Electricity and Water
‫الهيئة العـامة للكهـرباء والميـاه‬
Public Authority for Electricity & Water
IWP Water projects :
- Al Ghubra IWP, capacity of 191,000 M3/d , COD by
2014.
- Al Suwayq IWP, capacity of 225,000 M3/d , COD by
2016.
- Quraiyat IWP, capacity of 180,000 m3/d, COD 2018.
- Wadi Dhiqa Treatment Plant, Capacity of 67,000
m3/d, COD by 2015.
Total Investment required 720 M USD
9
‫الهيئة العـامة للكهـرباء والميـاه‬
Public Authority for Electricity & Water
Oman Electricity Business Structure - MIS
Direction of payments
Water Departments pay PWP
•for bulk purchases of desalinated water
charged at a cost reflective Bulk Supply
Tariff (BST);
•Water BST includes the PWP’s costs of
water procurement activities
Al Rusail Power
Company SAOC
Wadi Jizzi Power
Company SAOC
United Power Company
SAOG
Al Kamil Power
Company SAOG
Al Ghubrah Power &
Desalination Company
SAOC
ACWA Power Barka
SAOG
Sohar Power Company
SAOC
SMN Barka SAOG
Subsidy
Water Departments
Oman Power & Water
Procurement Company SAOC
PWP pays Production Facilities for
•Capacity and Output in accordance
with terms of PPA/PWPA
•Ancillary Services
Discos pay PWP for
•bulk purchases of electricity charged
at a cost reflective Bulk Supply Tariff
(BST);
•Electricity BST includes PWP’s costs
of electricity procurement activities
Oman Electricity Transmission
Company SAOC
Production Facilities & Others
pay OETC for
•Connection to Transmission
System
Muscat Electricity Distribution
Company SAOC
Majan Electricity Company SAOC
Mazoon Electricity Company SAOC
Discos pay OETC for
•Connection to OETC’s Transmission System
(Distribution business)
•Use of OETC’s Transmission System (Supply
business)
Customers
Others (Sohar II, Barka III and
Sur)
All intra sector transactions: (i) regulated & (ii) cost reflective (no direct subsidy)
Public Authority for Electricity and Water
10
‫الهيئة العـامة للكهـرباء والميـاه‬
Public Authority for Electricity & Water
Electricity Sector - Ownership
Private Investors
Ministry of Finance
100 %
0.01 %
Electricity Holding Company SAOC
99.99 %
Oman Power and Water
Procurement Company SAOC
Rural Areas Electricity Company
SAOC
Ghubrah Power and Desalination
Company
Public Shareholding
65 %
ACWA Power Barka SAOG
35 %
65 %
Al Kamil Power Company
35 %
60 %
United Power Company
40 %
65 %
Sohar Power Company
65%
Rusail Power Company
35 %
65 %
Barka II Power Company
35 %
100 %
Sohar II Power Company
100 %
Barka III Power Company
100 %
Sur Power Company
100 %
Sembcorb (Salalah IWPP)
Wadi Jizzi Power Company
Muscat Electricity Distribution
Company
Mazoon Electricity Company
Key:
Majan Electricity Company
Remains in Government
ownership
Slated for privatization
11
Oman Electricity Transmission
Company SAOC
Dhofar Power Company SAOC
Public Authority for Electricity and Water
3 %5
‫الهيئة العـامة للكهـرباء والميـاه‬
Public Authority for Electricity & Water
Expected Electricity Consumption - MIS
Projected Consumption TWh
Peak Demand MW
32.1
7000
30.1
Projected Compound
Growth Rate 8%
28.1
6000
26.2
24.3
22.7
Projected Compound
Growth Rate 8%
5000
20.7
19.0
4000
16.9
3000
2000
Actual
Projected
1000
0
Actual Actual
2010
2011
12
2012
2013
2014
2015
2016
2017
2018
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Public Authority for Electricity and Water
‫الهيئة العـامة للكهـرباء والميـاه‬
Public Authority for Electricity & Water
Consumption Breakdown - MIS
TWh (2010)
Agriculture &
Fisheries, 0.187
Commercial, 3.030
Residential, 7.588
Government, 1.926
Hotels & Tourism,
0.018
Industry, 1.232
other; 0.11
13
Public Authority for Electricity and Water
‫الهيئة العـامة للكهـرباء والميـاه‬
Public Authority for Electricity & Water
Privatization Trend in Electricity and Related
water Sector (MW of generation capacity)
Sur
8000
2.6 Billion Omani Rials
(6.7 Billion USD)
100 per cent
7000
Private Sector Investment
Private Sector Ownership
Barka III
Sohar II
Salalah - IWPP
6000
Barka II
5000
Rusail
Sohar I
4000
Salalah - NPS
3000
Barka I
Al Kamil
2000
Manah - Phase 2
1000
Manah - Phase 1
0
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
April 25
Public Authority for Electricity and Water
14
‫الهيئة العـامة للكهـرباء والميـاه‬
Public Authority for Electricity & Water
Future Key challenges
 Rapid Growth
 Subsidized electricity permitted tariff
 Fuel availability & cost Uncertainty
Public Authority for Electricity and Water
15
‫الهيئة العـامة للكهـرباء والميـاه‬
Public Authority for Electricity & Water
New IPP projects :
- New green-field IWPP plant in Salalah, capacity of 445 MW,
COD 2012
- Two new green-field IPPs in Barka & Sohar , capacity of 745 MW
each, COD by 2013.
- New green-field IPP plant in Sur, capacity of 2000 MW, COD
2014
- New green-field IPP plant in Musandam, capacity of 120 MW,
COD 2014
Projects under study:
-Duqum IWPP
- Salalah IPP (Phase II)
OPWP 7-year statement is available on www.omanpwp.com
16
‫الهيئة العـامة للكهـرباء والميـاه‬
Public Authority for Electricity & Water
Renewable Energy in Oman
 The Government of Oman has clearly stated its support for the implementation of
renewable energy initiatives in Oman
 A ministerial committee has been established to oversee and coordinate efforts
 The Authority for Electricity Regulation (AER) commissioned a study to
investigate the potential for renewable energy projects in the electricity sector.
The full study is available on AER web site www.aer-oman.org
 The Public Authority for Electricity and Water is taking steps to implement solar
and wind energy projects, to coordinate efforts to identify the need for research
and development and to identify the need for policy and other support
mechanisms
 Oman Power and Water Procurement (OPWP) is collecting data from two sites
(at Manah and Adam) to support development of future solar projects.
Preliminary data available on OPWP web site, www.omanpwp.com.
Public Authority for Electricity and Water
17
‫الهيئة العـامة للكهـرباء والميـاه‬
Public Authority for Electricity & Water
Study on Renewable Energy Resources - 2008
Objectives:
 To provide an overview of renewable sources of energy
in Oman & the potential use of renewable energy for
electricity production
 To provide a platform for developing renewable
energy policies for Oman
Findings:
 Significant potential from: Solar &Wind
 Limited potential from: Biogas, Geothermal &Wave
Public Authority for Electricity and Water
18
‫الهيئة العـامة للكهـرباء والميـاه‬
Public Authority for Electricity & Water
Large Scale Solar Power Project
Feasibility Study
• Market structure and regulatory
framework
Competition Process
• Tendering process
• Selection of optimum location
• PPA structure
• Confirmation of current power
capacity
Public Authority for Electricity and Water
19
‫الهيئة العـامة للكهـرباء والميـاه‬
Public Authority for Electricity & Water
RE way forwarded
Policy &
Strategy
1. Developing Policy
for R.E
development
2. R & D Policy
Project
Implementation
1. Pilot Projects
(RAECO)
2. 100 – 200 MW
Solar Plant (Grid
Connected)
3. Wind Monitoring
Program
3. Regulatory review
4. Wind farm
5. Green Buildings
Capacity Building
R&D
1. R.E
Desalination
2. Hybrid
Solutions
3. Solar
Cooling
Industrial
1. Row
material
extractions
2. Manufactur
ing added
value
4. Focused
research on
specific
technologies
Human
Resources
1. University
Program
2. Engineering
and O & M
Skills
3.
Reservoir &
Development
4.
Utilities
experience
Benchmark/Knowledge sharing
Public Authority for Electricity and Water
20
‫الهيئة العـامة للكهـرباء والميـاه‬
Public Authority for Electricity & Water
Key Strategic Initiatives undertaken by PAEW
 Energy Balance & Fuel Diversity:
 Developing Long term electricity Plan
 Diversifying Sources of Fuel
 Promoting fuel efficiency – conversions to CCGT
 Renewable Energy & Efficiency Initiatives:
 Large Scale Solar Plant
 Pilot Projects
 Energy Efficiency & Conservation
 Research & Development
21
Public Authority for Electricity and Water
‫الهيئة العـامة للكهـرباء والميـاه‬
Public Authority for Electricity & Water
THANK YOU
22
Public Authority for Electricity and Water