Raeco signs major power purchase agreement with OPWP to build Dhofar wind project
MUSCAT: Two agreements linked to the development of a planned 50 megawatt-capacity Dhofar wind power project, which will generate electricity needed for 16,000 homes, were signed by the Rural Areas Electricity Company (Raeco) here on Tuesday.
The power purchase agreement was signed by Raeco with Oman Power and Water Procurement Company (OPWP), while another power connection pact was signed between Raeco and Oman Electricity Transmission Company (OETC). The pact was signed by Eng. Saleh bin Nasser Al Rumhi, chief executive officer of Raeco, with Yaqoob Al Kiyumi, CEO of OPWP and Eng Masood Al Riyami, COO of OETC.
Abu Dhabi’s renewable energy company, Masdar, earlier signed an engineering, procurement and construction ( EPC) contract with a global consortium comprising GE and Spain’s TSK to build the Dhofar Wind Power Project, the first large-scale wind farm in Oman and the GCC.
Joint development
The Dhofar Wind Power Project is a result of the joint development agreement that was established in 2014 between Masdar and Raeco. The wind mill will be located in Fattehit area in Shalem and Halaniyat Islands in Dhofar governorate. The $105 million capital expenditure of the project will be brought in by Masdar.
Eng Al Rumhi said that Dhofar Wind Power project is significant step in clean energy ventures in the region. “It is the first project of its kind in the Gulf region, which will be built in a total area of 1,900 hectares,” he added. He said that the wind power project will help avoid about 110,000 tonnes of carbon emissions per year when compared to fossil fuels, and it will enhance skills of Omani nationals by training them to work in such vital projects.
Expansion plans
Eng. Al Rumhi said that the company has reserved a large area for doubling the power generation capacity of the wind project. “We can double the capacity.”
GE will lead the EPC consortium, and will provide the project’s 13 wind turbines powered by the company’s latest 3.8MW wind turbine generator solution.
Rising demand
Eng Al Rumhi added that the demand for electricity grew rapidly in the recent past, which was in line with economic development. Accordingly, power supply in 2016 reached 30.4 terawatt hours, which was 5 per cent more than the average in 2015.
The Raeco chief said that the number of customers have increased by 7.4 per cent to 1,074,597 in 2016, compared to 2015. Therefore, the power producers, including Raeco, are looking for alternative options to meet the growing demand.
He also noted that Raeco is looking at the possibility of setting up renewable energy projects in 11 locations and feasibility studies are going on. “At the end of this year or early next year, we will conclude the studies.” These projects could be solar, wind or hybrid projects.
“We are focusing on improving efficiency to optimise generation, other energy sources and interconnection with nearby areas.”