Transcript Investment Opportunities in the Power and

Oman Water and Energy Conference
Yaqoob Al Kiyumi
Chief Operating Officer
19 May 2015
OPWP’s Role – Areas/Systems
• Created as part of the of the electricity sector restructuring
MIS
• Government owned with statutory functions and duties
Muscat
• Regulated by licence from AER
• “Single Buyer” of power and desalinated water
• OPWP’s rating:
 S&P
 Moody’s
-
Stable ‘A -’
A1
• Turnover (revenue)- forecasted for 2015
690 million OMR
Ad Duqm
Salalah
Salalah System
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Current Market Structure and Regulatory Framework
Al Suwaidi Power
Company SAOC
Al Batinah Power
Company SAOC
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
SMN Barka Power
Company SAOG
Al Rusail Power
Company SAOC
Wadi Jizzi Power
Company SAOC
United Power Company
SAOG
Al Kamil Power Company
SAOG
Oman Power & Water
Procurement Company SAOC
PWP pays Production Facilities for
•Capacity and Output in accordance
with terms of PPA/PWPA
•Ancillary Services
Al Ghubrah Power &
Desalination Company
SAOC
ACWA Barka SAOG
Sohar Power Company
SAOC
Phoenix SAOC
Muscat Desal. SAOC
Subsidy
Water Departments
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
Discos pay OETC for
•Connection to OETC’s Transmission System
(Distribution business)
•Use of OETC’s Transmission System (Supply
business)
Muscat Electricity Distribution
Company SAOC
Majan Electricity Company SAOC
Mazoon Electricity Company SAOC
Dhofar Power Company SAOC
Customers
Dhofar Generation Co
SEMBCORP SAOC
Sharqiyah Desalination
Future Projects
All intra sector transactions: (i) regulated & (ii) cost reflective (no direct subsidy)
3
Current status (ownership structure)
Capacity Growth Trend (Private Sector Involvement)
5
Electricity Demand
 MIS: Demand growth at about 9% per year
 Dhofar: Demand growth at about 10% per year
Actual
2014
2015
2016
2017
2018
2019
2020
2021
Ave.%
Growth
Annual Energy (TWh)
25.0
27.8
30.6
33.4
36.9
40.1
43.5
47.1
9%
Peak Demand (MW)
5,122
5,653
6,225
6,797
7,464
8,076
8,775
9,530
9%
Annual Energy (TWh)
25.0
29.7
33.4
36.4
40.4
44.0
48.1
51.8
11%
Peak Demand (MW)
5,122
5,952
6,679
7,308
8,041
8,724
9,537
10,329
11%
Expected Demand
High Case Demand
6
MIS Electricity Supply Plan
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Water Supply Plan: Interconnected Zone
8
Water Supply Plan: Sharqiyah Zone
9
MIS Fuel Requirements
Gas Forecast
Efficiency Improvement Reduces Gas Needs
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Dhofar Power System Supply Plan
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Dhofar Water Supply Plan
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Main Procurement Activities in 2015
Ibri & Sohar3 IPP
Sohar IWP
Capacity
2850-3150 MW
55 MIGD
RFQ
Q2 2014
Q1 2015
RFP
Q1 2015
Bids Due
Award
Anticipated
COD
Barka
IWP
61.8
MIGD
Sharqiyah IWP
Salalah IWP
12.1 MIGD
18-22 MIGD
Q1 2015
Q4 2015
Q4 2015
Q1 2015
Q1 2015
Q1 2016
Q1 2016
Q3 2015
Q3 2015
Q3 2015
Q2 2016
Q2 2016
Q4 2015
Q4 2015
Q4 2015
Q4 2016
Q4 2016
Q2 2018
Q2 2018
Q1 2019
Q1 2019
EP: Q2 2018 (Ibri)
SCOD: Q1 2019 (Sohar)
Q2 2019 (Ibri)
Potential additional procurement starts in 2015:
 Duqm IWP (12 MIGD)
 Khasab City IWP (3 MIGD)
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Feedback / Further Information
Questions and comments welcomed
Further information available at:
www.omanpwp.com
14
Thank You
Contracted Generation Capacity
Type
Status
Contract
Start
Contract Expiry
Power Capacity
(net MW)
Water
(MIGD)
PWPA
Operational
2005
2018
475
40
Rusail Power Co.
PPA
Operational
2005
2022
687
Wadi Al-Jizzi Power Co.
PPA
Operational
2005
2020
245
United Power Co.
PPA
Operational
1996
2020
273
Al Kamil Power Co.
PPA
Operational
2002
2017
297
ACWA Power Barka
PWPA
Operational
2003
2018
450
30*
Sohar Power Co.
PWPA
Operational
2007
2022
590
26
SMN Barka Power Co.
PWPA
Operational
2009
2024
710
33
SembCorp Salalah Power
and Water Company
PWPA
Operational
2012
2027
445
15
Al Batinah Power Co.
PPA
Operational
2013
2028
744
Al Suwadi Power Co.
PPA
Operational
2013
2028
744
Phoenix Power Co.
PPA
Under Construction
2014
2029
2000
MCT Desal. Co.
PPA
Under Construction
2014
2029
Plant Owner
Al Ghubrah Power and
Desalination Co.
42
*10 MIGD Under construction
Total by 2014
7660
186
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CRITICAL FOCUS AREAS IN PROCUREMENT
•
Increasing awareness and pushing for highest priority for Health Safety and Environment
•
•
Enforcement of Omanization
•

•
Securing commitment from developers for independent monitoring and reports on the HSE during
the construction period
Providing more opportunities for Omanis to participate in critically important sector
Promotion and development of Omani content
•
Promote and enforce, where applicable, utilisation of local content and development within the
large capital expenditure projects
•
Omani content ranging anywhere between 18% to 30% of the EPC Cost
Economic purchase obligations
•
Transparent and competitive bidding process
•
Promote efficient and proven technology and solutions to best utilize natural gas available
•
Evaluation of proposals undertaken on the basis of economic price of gas
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