Peak power consumption is expected to climb by 10% each year in some parts of the country.
The Oman Power and Water Procurement Company (OPWP) has released its latest seven-year outlook for electricity and water demand in the country.
According to the forecast, daily water demand in Oman’s Main Interconnected System (MIS), which covers the governorates of Muscat and Buraimi and most of the South Batinah, Dakhliyah, Sharqiya, North Batinah and Dharihah regions, is expected to climb from 88 million m3 in 2007 to 236 million m3 by 2014.
The report said the increase would be spurred by population growth and economic development, as well as by a major policy drive away from reliance on groundwater resources.
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At least 133 000 m3 per day of new desalination capacity will need to be added to satisfy this rise, the study noted.
During the same period, peak power demand in the MIS system is predicted increase from 2 682 MW to 5 111 MW, reflecting an annual growth rate of 10%.
In order to meet these new energy requirements, OPWP will launch a tender later this year for a 750-1 000 MW power plant or a combined power and water project to be built either in Barka or Sohar, which would come onstream in 2011-2012.
The utility will also look to expand the Al-Ghubrah power and desalination plant, adding up to 500 MW of capacity. Another project for 1 000 MW of power may be also required by 2013-14, the report said.
Consumption growth in the city of Salalah and surrounding areas will largely be catered for by the greenfield Salalah independent power and water project, which is currently under tender.
The power facility will have a capacity of 370-430 MW and the desalination plant will be able to produce some 68 000 m3 of drinking water each day, equivalent to 15 million imperial gallons.
Startup is scheduled for 2011, with the possibility of early power in 2010. Requests for proposals have been issued to eight pre-qualified parties and bids are due to be received during the second quarter of this year.
General Electric, International Power, Marubeni and Mitsui are among the short-listed companies.
OPWP calculated that its total gas requirements for power generation and water desalination will jump from 168 million GJ in 2007 to 257-300 million GJ.
At present, the company pursues an “all-gas” strategy, but the Omani government has requested the utility look at diversifying its fuel consumption in light of the expected surge in requirements and the growing opportunities to sell gas elsewhere at high cost.
OPWP said renewable sources of energy were being explored, alongside the potential use of other fuel types.
