Muscat - Electricity demand in Duqm, where one of the Middle East's most ambitious industrial and economic hubs is currently under development, is anticipated to grow 10-fold to 650 megawatts (MW) by the year 2025. This compares with around 67 MW of diesel-based generation capacity currently serving the area, but which is anticipated to be progressively ramped up as power demand growth climbs over this timeframe. Meeting the electricity needs of investors setting up operations in the Duqm Special Economic Zone (SEZ) is a priority objective for the Oman Power and Water Procurement Company (OPWP), the sole procurement of new power generation and water desalination capacity.
"The developments being undertaken by the Special Economic Zone Authority of Duqm (SEZAD) will contribute substantial economic and population growth in Duqm. The demand for electricity in Duqm is expected to grow significantly as the SEZ Authority of Duqm (SEZAD) realizes its ambitious development plans. The first phase of the SEZAD Master Plan anticipates electricity demand of 650 MW by 2025," the state-owned utility said in its newly released 7-Year Outlook Statement for the 2026-2022 timeframe.
It noted however that "the pace of growth is highly uncertain and depends on many factors related to global markets, investment levels, and government incentives".
Given its location outside of the two main grids -- Main Interconnected System (MIS) and Dhofar System -- which serve much of the Sultanate, Duqm's electricity requirements are covered by the Rural Areas Electricity Company (RAECO). The latter owns and operates the 67 MW diesel powered plant that currently serves Duqm and the surrounding areas.
Forecasts of a significant near-term increase in power demand in Duqm, fuelled by anticipated investment and commercial activity, have not been fully realized, according to OPWP.
"RAECO identifies the main drivers for this drop as a delay in construction of the Oman Oil refinery, a reduction in the number of construction workers for the refinery from 30,000 to 19,500 workers, a similar delay in commercial and light industry project construction, and delayed demand realization from the port of Duqm based on the number of investors committed to date," the procurer said.
Nevertheless, RAECO plans to add around 80 MW of additional capacity to its existing plant by 2018, effectively bolstering to total generation capacity to 147 MW. This would be sufficient to meet demand in the emerging hub through 2022. Any spike in demand beyond this projection is proposed to be served by temporary rental generation, or a temporary capacity purchase deal with the refinery's capital power plant.
Authorities also envision any supply contingencies being addressed by a proposed initiative to link the Main Interconnected System (serving much of the northern half of Oman) with Duqm. OPWP is currently working with the transmission utility, Oman Electricity Transmission Company (OETC), and Petroleum Development Oman (which operates a private network serving the oilfield areas) to evaluate the feasibility of constructing a 400 kV transmission line linking the MIS with Duqm, and the PDO and Dhofar Systems as well.
"Subject to approval, this would provide Duqm with access to power generation resources in the MIS system. Once Duqm develops as a major industrial and economic centre, it will require this link to provide for grid stability and security," OPWP stressed.
To meet potable water demand growth, OPWP has already kicked off the tendering process for the procurement of a 60,000 cubic metres per day (13.2 million imperial gallons per day -- MIGD) capacity seawater desalination plant in Duqm. The plant is expected to reach commercial operation in Q4 2019.
© Oman Daily Observer 2016
