Oman to Build First Solar Power Station

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Researched by Industrial Info Resources (Sugar Land, Texas)--Oman's Authority for Electricity Regulation issued a renewable energy study in 2008 that detailed the extent to which solar- and wind-generated power, as well as biogas, could be exploited in the future. Using data gathered at different stations across the country, the study concluded that Oman could generate up to 5.5 kilowatt-hours per square meter of solar paneling per day.

Since countries in the Persian Gulf, Gulf of Oman, and Arabian Sea areas receive, on average, 300 clear and sunny days per year, Oman has one of the highest solar energy densities in the world. With vast areas of desert open for development, the country theoretically could supply all of its energy demands and even export energy. Oman's electricity demand is expected to increase at least 8% per year or more, surging more than 6,000 megawatts (MW) by 2016.

Most of Oman's natural gas goes to oil development and the production of liquefied natural gas (LNG), with little to spare for power plants. As the demand for electricity has risen sharply with industrialization and a population bloom, Oman has begun importing coal to help power desalination plants and fuel electricity generation facilities. The utilization of renewable energy will help decrease the country's dependence on natural gas, freeing up reserves for LNG export and the enhancement of oil production. Renewable energy also will allow Oman to become self-sustaining, thus decreasing its reliance on imports of natural gas and coal.

Next year, sometime during the fourth quarter, the Public Authority for Electricity and Water (PAEW) (Muscat, Oman) will begin construction on Oman's first solar power station. In 2009, more than 50 firms submitted consultancy bids for the project, and PAEW awarded the contract to a consortium comprised of WorleyParsons Oman Engineering plc (Muscat, Oman), which will serve as a technical adviser; Macquarie Group (ASX:MQG) (Sydney, Australia), which will attend to financial matters; and Chadbourne and Parke LLP (New York, New York), which will serve as a legal adviser. The consortium is working with PAEW to find a suitable site in which to build a 100-MW to 200-MW solar power station to supply renewable power to the national grid. So far, the most preferred area lies 350 kilometers southwest of Muscat, in a desert with a relatively undeveloped sector. PAEW, along with the consortium, is looking to invest about $800 million in the project, which is scheduled for completion during the fourth quarter of 2013.

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