MUSCAT — The Authority for Electricity Regulation, Oman has issued a landmark study which effectively charts a road map for the development of renewable energy resources in the Sultanate. In particular, the study underlines the strong potential for developing the country's limitless access to solar energy through the establishment of large-scale solar thermal plants. The study also identifies the long term potential for a wind farm of up to 750 MW in the south of the country following interconnection of the northern grid and the Salalah power system.
"The study identifies the need for a Designated National Authority (DNA) in Oman to administer clean development mechanisms (CDMs) to assist renewable energy investment (as spelt out by the United Nations Framework Convention on Climate Change)," commented John Cunneen, Executive Director of the Authority for Electricity Regulation, Oman. "The establishment of a DNA would provide investors additional financial benefit to support renewable energy investment in Oman, to the ultimate benefit of the Sultanate. We hope the government will move to establish a DNA in the near future."
"We believe this is the first systemic study of Oman's renewable energy potential," Cunneen added "in addition to highlighting the potential use of renewable for electricity generation, chiefly solar and wind, the study will also assist the process of developing renewable energy policies for Oman."
Overview of sources
Speaking to the Observer, Cunneen said the report was the product of a vigorous, year-long assessment by international consultants Cowi and Partners LLC, who were commissioned by the regulatory authority to provide an overview of renewable energy sources in Oman. "The Authority is always mindful of its statutory responsibilities, particularly its duty to secure the provision of electricity in all parts of Oman including isolated areas. But we also have a duty to secure and develop the safe and economic supply of electricity, and a duty to afford due consideration to the protection of the environment — something we take very seriously.
"We looked at these responsibilities and the present structure and arrangements in Oman, and concluded that we didn't see where renewables fitted into this picture. So we appointed an international consultant to assess at a high level the potential sources of renewable energy. We asked them to look at solar, wind, biogas, geothermal and wave energy," Cunneen explained. Yesterday, a final report of the study was formally presented to the government, with copies handed out to the Ministry of National Economy, Ministry of Environment and Climate Affairs, Public Authority for Electricity and Water (PAEW), the Scientific Research Council, and a host of other ministries, and public and private sector bodies.
Renewables like solar and wind, Cunneen stresses, offer potentially significant economic and environmental benefits to the Sultanate, which currently depends almost entirely on fossil fuel (natural gas) for its electricity requirements. "The Government of Oman is looking at all possible energy options, including renewable, to meet the country's economic growth and environmental objectives. "We believe renewable energy offers several advantages. Besides the obvious environmental benefits, renewable energy can also contribute to a more diversified fuel base. Also, because they are indigenous, they can contribute to security of supply, and reduce the need to import raw fuel or electricity from other countries."
Interest in renewable energy is extremely strong, with government, public and private sector entities approached by the consultants, offering unstinted support for the study. "We've had excellent co-operation from all concerned. The consultants note that there is overwhelming support for the introduction of renewable energy initiatives. People see a gap here and don't understand why more is not being done in this area. They welcomed the Authority's efforts in promoting these resources." According to Cunneen, the study spells out an important timeline for the progressive development of renewable energy in Oman in parallel with the formulation of all the relevant policy changes.
"Starting next month, we intend to work closely with the PAEW who has the lead role in securing policy changes and approvals to the existing framework of the sector law with regard to competition, licensing, subsidy, and so on, in order to facilitate the introduction of large-scale renewable projects. We hope PAEW will co-ordinate with the Ministry of National Economy to secure approval for the introduction of Tax Credits and Investment Incentives to support and encourage renewable energy investments in Oman.
At the same time, the Authority plans to invite the Rural Areas Electricity Company SAOC (RAEC), which is responsible for power generation and distribution in remote parts of the country, to identify potential locations for small pilot projects based on solar and wind energy, possibly as hybrid systems. These pilots will help supplement electricity output in an area currently served largely by expensive diesel-based power generation, Cunneen added. "Looking to the longer term, assuming approval of the renewable policies identified by the study as necessary to support large-scale projects, we expect the Oman Power and Water Procurement Company SAOC to conduct fair and transparent competitions for the capacity and output of large-scale renewable energy projects."
