Oper­a­tional tri­als for elec­tric­ity spot mar­ket to be­gin in 2020

Full-fledged op­er­a­tions of the spot mar­ket ex­pected to start by end of next year

Muscat Daily - - BUSINESS -

The sul­tanate’s Author­ity for Elec­tric­ity Reg­u­la­tion (AER) is plan­ning to ini­ti­ate the oper­a­tional tri­als for the pro­posed elec­tric­ity spot mar­ket dur­ing the mid­dle part of 2020, with an aim to launch the full-fledged spot mar­ket by the end of next year.

Ac­cord­ing to the AER’s lat­est an­nual re­port, which is posted on its web­site, the reg­u­la­tor aims to com­plete the mar­ket reg­u­la­tions soon, thereby mak­ing a way to ini­ti­ate tri­als in mid-next year. ‘The spot mar­ket tri­als and sys­tem test­ings are ex­pected to com­mence dur­ing the mid­dle part of 2020, with the mar­ket fully oper­a­tional ap­prox­i­mately six months later,’ AER said in the re­port.

The re­port said that at present the author­ity does not con­sider the mar­ket ready for the in­tro­duc­tion of elec­tric­ity spot mar­ket in the coun­try. How­ever, it be­lieves that with a num­ber of steps taken to lib­er­alise the sec­tor, in­clud­ing the in­tro­duc­tion of new li­cence con­di­tions and prepa­ra­tion of new reg­u­la­tions, might help the coun­try in pre­par­ing for fur­ther lib­er­al­i­sa­tion of the power sec­tor.

‘The pro­gramme of work to de­velop a [com­pul­sory] spot mar­ket that will en­able li­censed pro­duc­tion fa­cil­i­ties to sell power to Oman Power and Wa­ter Pro­cure­ment Co (OPWP) at a price set by a mar­ket-based mech­a­nism con­tin­ues,’ AER said.

The AER re­port fur­ther re­vealed that cur­rently the author­ity is par­tic­i­pat­ing ac­tively in de­tailed dis­cus­sions re­lat­ing to mar­ket rules and by de­vel­op­ing the as­so­ci­ated reg­u­la­tory in­stru­ments. As a part of this process, new li­cence con­di­tions were also in­tro­duced in De­cem­ber last year.

The AER, how­ever, clar­i­fied that the spot mar­ket has been de­signed to pro­vide the nec­es­sary eco­nomic sig­nals to sup­port fur­ther in­vest­ment in Oman’s power gen­er­a­tion sec­tor, with­out the un­der­pin­ning re­quire­ment for long-term power pur­chase agree­ments with OPWP. ‘OPWP would there­fore con­tinue to act as the sin­gle buyer of all elec­tric­ity sold through the mar­ket, even if some sales would not be sup­ported by long-term power pur­chase agree­ments.’

The author­ity clearly stated in the re­port that it will re­view all con­di­tions while as­sess­ing the po­ten­tial im­pact on Oman’s econ­omy and power sec­tor be­fore fi­nal­is­ing the draft.

Newspapers in English

Newspapers from Oman

© PressReader. All rights reserved.