5/18/2009

Development of a Large Scale Solar Power Plant in Oman

Bob Whitelaw Public Authority for Electricity and Water

5/18/2009

Background and status of the Project Objectives Frequently asked questions

May 09

Public Authority for Electricity and Water

5/18/2009

Dependence on natural gas no longer an option Growing need for fuel diversity Sustainability and use of indigenous resources is key to development The Government actively promotes the use of renewable technologies
AER study (2008) identified solar and wind as having significant potential PAEW responsible for supervising the feasibility study and competition process

May 09

Public Authority for Electricity and Water

5/18/2009

PAEW has initiated the appointment of expert advisors The advisors scope is in two phases:
Phase 1: Detailed feasibility study Phase 2: Competition process

Combining the two phases in one contract:

Demonstrates commitment to implementation Ensures continuity of thinking
May 09 Public Authority for Electricity and Water 4

5/18/2009

Establish a framework for future solar power projects Establish a framework for all renewable energy projects Develop local capabilities
local manufacturing industry local operating and maintenance capabilities training and development opportunities for Omani nationals

May 09

Public Authority for Electricity and Water

5/18/2009

Identify and evaluate all international experience To fully appreciate the Omani context
Physical environment Legal and institutional environment Oman-specific objectives

May 09

Public Authority for Electricity and Water

5/18/2009

Identify the need for legislative support Identify location(s) and capacity (range) Develop appropriate risk allocation structures Produce comprehensive competition documentation

May 09

Public Authority for Electricity and Water

5/18/2009

The competition process will:

Generally follow Oman precedent for thermal Power Projects Adapted based on international solar plant experience

Overall process will be designed to ensure:

Clear evaluation methodology Maximising the long term benefits to Oman

May 09

Public Authority for Electricity and Water

5/18/2009

Does Oman have feed in tariffs? Has the technology been preselected? How large is Large Scale? What is the timetable?

May 09

Public Authority for Electricity and Water

5/18/2009

No
Not considered appropriate (at this stage) Power Purchase Agreement Sector subsidy arrangements

May 09

Public Authority for Electricity and Water

10

10

5/18/2009

Statutory Obligation (LOLH = 24 Hours / year)

competition for new thermal capacity Oman Power and Water Procurement Company Power Purchase Agreement (PPA) Bulk Supply Tariff (Distribution and) Supply Companies Customer Tariffs Subsidy

Customers
May 09

Government
11

Public Authority for Electricity and Water

11

5/18/2009

Power purchase funding

Proposed for solar power capacity
Government Policy Decision (x MW Solar Power)

competition for Solar Power capacity Oman Power and Water Procurement Company Solar Power Purchase Agreement Bulk Supply Tariff (Distribution and) Supply Companies Customer Tariffs Subsidy

Customers
May 09

Government
12

Public Authority for Electricity and Water

12

5/18/2009

Power purchase funding

Statutory Obligation (LOLH = 24 Hours / year) Government Policy Decision (x MW Renewable Capacity)

competition for new thermal capacity Oman Power and Water Procurement Company Power (and Water) Purchase Agreement Bulk Supply Tariff

competition for Renewable Power capacity

Renewable Power Purchase Agreement

(Distribution and) Supply Companies Customer Tariffs Subsidy

Customers
May 09

Government
13

Public Authority for Electricity and Water

13

5/18/2009

Has the technology been preselected?

No
Selection will be in two phases: Feasibility study assessment of technologies Competition process

May 09

Public Authority for Electricity and Water

14

14

5/18/2009

Feasibility Study Review of all technologies (functional specification) Competition evaluation methodology (selection of optimum technology)

May 09

Public Authority for Electricity and Water

15

15

5/18/2009

One of the primary outputs of the feasibility study Requires a thorough review of the costs and benefits However:
Unlikely to be less than 50 MW Unlikely to be more than 200 MW

May 09

Public Authority for Electricity and Water

16

16

5/18/2009

Phase 1 feasibility study

Not less than 3 months Probably closer to 6 months

Phase 2 - competition
Not less than 6 months Not more than 12 months

Priority is quality
May 09 Public Authority for Electricity and Water 17

17

5/18/2009

Thank You
Investment Opportunities in the Electricity and Related Water Sector

Bob Whitelaw Public Authority for Electricity and Water

18