Wednesday 19 September 2018

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DGC’s 445 MW power plant to kick off operations in January

MUSCAT, July 27, 2017

Oman-based Dhofar Generation Company (DGC) will start generating power from a new natural gas-fired 445-MW plant (Salalah II) in January 2018, a report said.

A consortium consisting of Japan’s Mitsui & Co, Saudi Arabia’s Acwa Power and Dhofar International Development and Investment Holding Company had won a contract to build a $630-million power plant in Raysut in 2015, reported the Times of Oman.

As part of the deal, the consortium has acquired Dhofar Generating Company, which owns and operates an existing 273 MW gas-fired power plant at the adjacent site, from Electricity Holding Company (Nama Holding). This will take the total power capacity of Dhofar Generating Company to 718 MW once the new plant starts operation.

Electricity demand in the Dhofar region is projected to grow by seven per cent per annum for the next seven years, from an average of 348 MW in 2016 to 559 MW in 2023, the report said.

However, peak demand is expected to grow at about six per cent per year, from 497 MW in 2016 to 765 MW in 2023, according to a seven-year outlook report released by the Oman Power and Water Procurement Company (OPWP).

Presently, Salalah IWPP, owned and operated by Sembcorp Salalah Power and Water Company, generates 445 MW of power and 68,000 cu m of water per day for the Dhofar region. It is located in the Marbat/Taqah region, and started operations in 2012.

Meanwhile, the Rural Areas Electricity Company (Raeco), in partnership with Masdar of Abu Dhabi, is developing a 50 MW wind farm project, which will operate under a power purchase agreement with OPWP. The project has been tendered, but is currently on hold and awaiting approval, the report said.

The wind farm, where around 25 wind turbines are expected to be built, will be located near Harweel. It is expected to launch commercial operation in 2020.

Tags: Oman | Salalah | power plant |

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