Oman’s power sector, which has witnessed a boost of 10 per cent per annum, is estimated to grow by 11 per cent in 2020 on the weight of new developments, a report said.

Oman Power and Water Procurement Company (OPWP) has announced that it intends to introduce new arrangements for energy and water through independent producers, added the Oman Observer report.

These arrangements include introduction of energy market in 2017 when long-term contracts signed earlier with power plants expire. The new system will be operational in parallel to the existing system, signing long-term power procurement agreements.

The new arrangements also include a more flexible approach in concluding new agreements for the purchase of power by OPWP in a bid to enhance competition among the existing and new plants.

Oman’s electricity production grew by 9.6 per cent in 2014 to hit 28,700 GW/H compared to 26,200 GW/H in 2013.

OPWP expects that the demand for electricity from the main grid at the peak hour will increase from 5,886 MW in 2015 to about 9,133 MW in 2020 — an average annual growth by 11 per cent.

The power plants in the sultanate currently produce 7,594 MW, after the operation of Sur Power Plant in South Al Sharqiyah Governorate early this year with a capacity of 2,000 MW, the report said.