Oman appoints consultant for coal-based power study

FROM P13 team coupled with the rollout of a techno-economic study does not automatically imply that a coal-based IPP is in the works. Rather, these initiatives stem from a broader effort by OPWP, as well as other power industry stakeholders, to explore renewable and alternative energy resources in line with a desire to diversify the sector’s fuel resource base.

Additionally, the initiatives will help in the speedy procurement and delivery of coal-based power generation capacity in the event of a firm decision by the government to proceed along this route.

Given the lengthy gestation period associated with the procurement of a coal-based IPP — which is typically twice the duration involved in delivering conventional gas-based capacity (averaging around 4.5 years) — having the requisite financial, commercial, legal and regulatory inputs in place is imperative to the expeditious execution of any coalbased scheme, the Acting CEO noted.

“Thus, while we are doing the techno-economic study, we are also looking to save time by having the financial and legal advisers in place via competitive tender. As part of their services, they will also come up with an RfP (Request for Proposals) or RfQ (Request for Qualifications) for the project. Thus, when we get a green-light from the Board and the government for coal-based power capacity, we will have a good headstart in the implementation of the project,” he stated.

Tanfeedh — the National Programme for Enhancing Economic Diversification — is also being “kept in the loop” with regard to OPWP’s techno-economic study of coal-based power generation, said Al Kiyumi.

Tanfeedh has mooted a stronger uptake of renewable and nonrenewable energy sources, notably coal and petcoke, as potential fuel resources. Among its 120-odd proposals for accelerating economic growth in the face of the global economic crunch is an initiative for the development of a 500MW capacity coal-fired power plant in Duqm.

Duqm, according to the Acting CEO, is only one of several locations around Oman being weighed as possible sites for the establishment of the proposed coal-based IPP. “We are studying multiple locations. As coal plants usually come in large capacity, there needs to be enough load where they are built. The port at Duqm is an advantage, but not the only factor for establishing a coal plant. Also, it would help if there a network linking the northern and southern grids to allow for part of the output to be exported.”