Prime Highlights
⦁ Oman is planning new power agreements to secure a stable electricity supply during changes in its energy sector
⦁ The strategy focuses on both new projects and extending the use of existing power plants to maintain balance.
Key Facts
⦁ The new agreements will cover power projects with a total capacity of around 3,500 MW.
⦁ Extending existing plant operations will help reduce costs and ensure a continuous electricity supply across the country.
Background
Oman’s Nama Power and Water Procurement Company (Nama PWP) is preparing to award new power purchase agreements (PPAs) for projects with a total capacity of around 3,500 megawatts (MW), as part of its long-term energy planning strategy.
The agreements will be signed with three existing independent power producers — Phoenix Power, Al Batinah Power and Al Suwadi Power. These companies currently operate major gas-based power plants in Sur, Sohar and Barka. The new PPAs shall permit these plants to operate beyond the periods of their present contracts.
Depending on the project, the contracts are most likely to run for some 15 years, starting between 2028 and 2029. The electrical supply will become stable and reliable in Oman because this project will continue until existing power plants retire and the country implements new energy projects, which will include renewable energy sources.
Nama’s plan is part of its 2028–2029 program to secure a steady power supply as the country’s energy sector changes. As part of furthering the life of efficient gas power plants provided under optimum commercial circumstances, the company strives to protect grid stability and control against the rise in power usage.
The strategy is balanced, as Oman continues to invest in new power projects while making better use of existing facilities.
PPAs, in general, attest to Oman’s determination to achieve a reliable power system while aligning moderately with clean energies in the future.
