Muscat – Nama Power and Water Procurement (Nama PWP), the state-owned company responsible for power and water procurement, is looking at renewable energy options for power generation in Musandam governorate.

To meet the additional capacity required from 2028 onwards in Musandam, Nama PWP, in coordination with other stakeholders such as OETC and OQ, is exploring two alternative supply options. First is through international interconnection and the other through renewable energy options.

‘Nama PWP is exploring several sites within Musandam region to develop wind and/or solar projects. Nama PWP will continue exploring and investigating the availability of sites and potential of wind and solar in the governorate,’ it stated in its seven-year statement – 2023-2029.

The company expects demand for electricity to increase in the governorate following steady growth in population in the coming years as well as driven by projects that aim to boost tourism, economic and commercial activities.

Under expected demand forecast, peak demand is expected to grow from 80MW in 2022 to 104MW in 2029, an average increase of 4% per year, Nama PWP stated. The low case scenario projects a growth rate of 2% for peak demand, increasing only to 95MW by 2029. The high case scenario assumes a larger growth of population as well as increased tourism, fishery activities and other developments. In this scenario, peak demand is projected to grow by an average of 6% per year to reach 119 MW in 2029.

Nama PWP’s present portfolio of contracted capacity for electricity generation in Musandam comprises Tanweer Diesel Plants and Musandam IPP.

Tanweer owns and operates power stations that depend on diesel-fired generators. The Khasab plant has total installed capacity of about 80MW and another diesel plant in Dibba has capacity of about 12MW. The contract for Tanweer expires on December 31, 2026.

Musandam IPP provides capacity of 123MW using reciprocating engines fuelled primarily by natural gas.

‘Musandam IPP provides sufficient capacity to meet electrical energy requirements across all the low and expected case demand scenarios until 2026. It is not anticipated to require Tanweer diesel generators in Khasab and Dibba to meet the expected demand. Tanweer diesel generators will continue to be available to provide additional capacity or as a contingency resource if needed until the end of 2026,’ Nama PWP stated.