Raeco to build 78MW power plant in Musandam
Oman’s Rural Areas Electricity Company (Raeco) is planning to build a gas-fired independent power project (IPP) with a generation capacity of 78MW in the Musandam governorate of Oman
Oman’s Rural Areas Electricity Company (Raeco) is planning to build a gas-fired independent power project (IPP) with a generation capacity of 78MW in the Musandam governorate of Oman, according to a seven-year outlook statement from the Oman Power and Water Procurement Company (OPWP).
A private developer, who wins the contract through a competitive tender, will build the project for selling electricity to Raeco, reported Times of Oman.
“The current plan is to bring these units online once total demand (in Musandam) increases beyond 100 megawatt, which, as per Raeco’s demand forecast, is expected to be in 2019,” stated the report from OPWP.
The peak annual growth in demand for electricity in the Musandam governorate in a low case scenario for another seven years is estimated at 7%, up from 74MW in 2016 to 116MW in 2023, the company said in its seven-year outlook.
However, the high case scenario assumes higher demand for electricity from residential units, tourism projects and the fisheries sector. Peak demand is projected to grow by an average of 11% per annum for the next seven years, from 74MW in 2016 to 150MW in 2023.
A newly established independent power project—the 123MW capacity Musandam Power Company, will start power generation soon. The gas-fired power project will enable Raeco to reduce its reliance on diesel generators, yielding a substantial savings in fuel costs, said the seven-year outlook.
Presently, Raeco owns six diesel-fired power stations, with a combined capacity of 88MW distributed near load centres in the Musandam governorate. With the exception of three diesel generator units, with a total capacity of around 27MW, the majority of units are nearly at the end of their technical life. As such, these units are expected to be decommissioned once the new IPP starts power generation.