Electricity demand in Oman to surpass 9.4GW by 2025

Electricity demand in Oman to surpass 9.4GW by 2025
Published: 25 July 2019 - 8:14 a.m.
By: Baset Asaba

Electricity demand in Oman is likely to grow at a brisk rate over the next five year to cross over 9,400MW by 2025, according to the seven-year statement released by Oman Power and Water Procurement Company (OPWP).

According to the statement, the peak demand for power in the main interconnected system (MIS) that covers the northern part of the Sultanate including the capital, Muscat, is expected to continue to grow at a brisk rate, about 5 per cent per year, from 6,168MW in 2018 to 8,600MW in 2025.

‘Peak demand growth continues to show the impact of consumer responses to the time-of-use tariffs (Cost-Reflect Tariff or CRT) that were introduced in 2017,’ the statement said.

Similarly, the peak demand for power in the Dhofar system is expected to grow at 6 per cent per year from 539MW in 2018 to 827MW in 2025.

Thus, the total consumption of power in the country after accounting both systems is expected to breach 9,400MW by 2025 under normal circumstances. OPWP has also made the assumptions keeping low demand and high demand scenarios in mind.

Under the low demand scenario, the peak demand for electricity in MIS is likely to grow at 3 per cent annually thus reaching to a level of 7,590MW in 2025, almost 1,000MW below the expected projections under normal circumstance. In case of a high demand situation, the projected growth is 8 per cent per annum and will reach 10,240MW by 2025, thus exceeding the normal projections by almost 1,600MW.

Similarly, in case of a lower than expected growth in electricity consumption in the Dhofar system, OPWP is expecting the power demand to rise by 5 per cent per annum to 747MW by 2025. In case of a higher than anticipated increase in power consumption, it will touch 981MW by 2025.

According to OPWP, Oman’s electricity system is broadly divided in three systems, the largest part is known as the main interconnected system, the second system is Dhofar Power, and third one is owned by Petroleum Development Oman, which is responsible for oil and gas exploration and production, and it also owns and operate its own power system and this is interconnected with the MIS and Dhofar systems.

Besides them, Rural Areas Electricity Company (RAECO) provides electricity to remote areas using several smaller power generating units, and there is also a Musandam system catering to local needs in northern most part of the country.

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