The privitisation of the electricity sector is on track with the sale of 70% of Muscat Electricity Distribution Company (MEDC) shares planned to receive bids and complete transaction in 2020.
This information was revealed during Nama Group’s annual press conference on Monday where Eng Omar Khalfan al Wahaibi, CEO, Nama Group, presented the group’s key achievements in 2019.
“Our achievements would not have been accomplished without the efforts of Nama Group employees in charge of building sustainable development. The group is represented by 100 per cent Omani leadership while the Omanisation percentage across the group has reached 95.1 per cent,” he said.
Eng Wahaibi highlighted the successful completion of the Oman Electricity Transmission Company (OETC) partial privatisation by sale of 49% shares to State Grid International Development (SGID) at a value of US$1bn. The signing ceremony was held in Muscat on December 15, 2019. The OETC shares transaction was completed in the first quarter of 2020. SGID is the wholly owned subsidiary of the State Grid Corporation of China (SGCC), one of the largest operators of electricity transmission networks in the world.
In addition, the Group intends to finalise the sale of 70% of its shares in MEDC as per the plan to privatise electricity distribution companies. “It is planned to receive the bids and complete the privatisation transaction in 2020,” he said.
The group experienced an increase in the number of customers by 4.7% compared to 2018, reaching to 1,276,932 customers. In addition, the percentage of inquiries resolved in less than six days reached 99 per cent. Also, Transmission Network Reliability in 2019 increased to 99.99%, one of the highest percentages in the world.
The group witnessed a slight growth in the units sold by 0.7% to reach 33,796 GWh in 2019. On the other hand, the group achieved a remarkable increase in gas consumption efficiency during 2019 by 10.4 per cent compared to 2018.
Eng Wahaibi said, “The Group continues the implementation of its integrated strategy to increase operating efficiency and provide safe and sustainable electricity services to all customers in the sultanate. The group aligns with the technological improvements and the global transformation toward renewable and sustainable energy which will have an impact on intensive e-services implementations and changing electricity generation and consumption behaviour.”
Nama Group continued to invest in the expansion and development of the transmission and distributions’ networks in 2019 and its total capital expenditure reached RO285
The group was successful in implementing key renewable energy projects like starting the operations of the Dhofar Wind Project, the first of its kind in the region, with total capacity of 50 MW. In addition, a tender has been awarded for the construction and operation of the 500 MW Ibri Solar Project. Manah Solar I & II IPPs with a production capacity of 1000 MW were also launched.
Nama Group also announced the Interconnection Project (North-South) to connect Oman’s main systems, the Main Interconnected System (MIS), PDO network and the Dhofar Power System (DPS). The project will enhance the efficiency of the electricity networks and further assist in the optimal use of the renewable energy.