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Oman to issue RFQs for two power projects in 2017

The RFQ and RFP issuance, bid submission, contract award, and COD timelines for Oman Power and Water Procurement's 1,600MW plant and 200MW solar project have been revealed

Oman will issue RFQs for two power projects later this year. [Representational image]
Oman will issue RFQs for two power projects later this year. [Representational image]

Two requests for quotations (RFQs) will be issued for power projects with a combined capacity of more than 1,800 megawatts (MW) in Oman, it can be revealed.

In its Seven-Year Outlook Statement for the period between 2017 and 2023, Oman Power and Water Procurement Co (OPWP) outlines its near-term procurement plans for a power project that will provide additional power generation capacity by 2022, as well as solar photovoltaic (PV) developments. 

The first of the two projects will see OPWP procure "at least 1,600MW of generation capacity for operation in 2022". 

READ: Oman to launch six power and water projects by 2020

The capacity refers to the aggregate value of multiple awards, which are expected to include new power (and water) purchase agreements P(W)PAs for existing plants that fall out of contract in 2021 and 2022, as well as new independent power producer (IPP) capacity.

RFQs for the development will be issued in Q3 2017, with requests for proposals (RFPs) to be issued in Q1 2018. 

Bids for the project will be due by Q2 2018, and contract award is expected to be completed by Q3 2018. 

READ: OPWP signs $2.3bn contract for power plants

The tender will, according to OPWP, "proceed under a new procurement methodology that allows existing [and] out-of-contract plants to compete for new P(W)PAs with bidders for new IPP plants". 

The project's commercial operations date (COD) is scheduled for Q1 2022. 

"All project awards would have COD by May 2022, although new P(W)PAs with existing plants may start earlier in the year following [the] expiry of [their] current contracts," OPWP's report adds.  

Meanwhile, OPWP has also "engaged advisors to assist [with] the specification and procurement of solar PV project(s) with installed capacity of at least 200MW".

The solar development's RFQ is expected to be issued in Q4 2017, with RFPs to be issued in Q1 2018, and bids due by Q2 2018. 

Contracts for the IPP solar PV project will be awarded by Q3 2018, with COD set for 2020. 

Oman is focused on increasing its power generation capacity as it anticipates power demand to exceed supply by 2022. 

OPWP's report adds: "With contracted capacity at 7,394MW in 2022, the need for additional capacity under the expected demand scenario is nearly 1,300MW in 2022, and nearly 1,800MW in 2023."

READ: Is the Gulf doing enough to meet its future energy needs?

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