Contingency Reserves

Wind project

50

50

50

PDO Interconnectc
Total Contingency Reserves

100
100

100
100

100
100

100
100

100
150

100
150

100
150

TOTAL ALL RESOURCES

818

818

818

818

1168

1168

1168

All capacities are rated on a net basis (i.e. after allowing for auxiliary consumption inside the plants) at 35C ambient temperature.
b The Salalah 2 IPP is shown at its minimum capacity level of 300 MW, although the project may be contracted in the range of 300 - 400 MW.
c Provisional import capability

2.3

ADDITIONAL POWER GENERATION REQUIREMENTS

Statutory and Regulatory Requirements

Similarly to its role in the MIS, OPWP is required by the Sector Law and its license to ensure the adequacy of
generation resources in the Salalah System to meet future power demands. The Sector Law establishes
OPWPs general responsibility to secure sufficient generation resources to meet demand. Although the OPWP
license does not stipulate a specific generation security standard for the Salalah System, as it does for the MIS,
it requires OPWP to ensure that electricity customers in the Salalah System receive a service generally of
equivalent quality to that received by customers in the MIS.
This latter requirement implies compliance with the MIS standard of 24 hours LOLH, as a minimum. However,
given the more limited level of contingency support available to the Salalah System relative to the MIS, OPWP
has in practice applied a more stringent standard, to ensure the required service quality.
Future Capacity Requirements
OPWP has determined the contracted capacity needed to comply with the security standard in each year
during the 2014-2020 period, for each of the three demand scenarios. They are shown in Figure 11.
In both the Expected Demand and High Case scenario, additional capacity is required in 2018. The supply
deficit is 49 MW under Expected Demand and 157 under the High Case. OPWP plans to add new capacity, the
Salalah 2 IPP, in the range of 300 MW to 400 MW to address the projected supply deficits from 2018 to 2020.
A plant with capacity in this range is assessed to be the most economical given the Salalah Systems annual
load profile and demand uncertainty. The capacity range also enhances competition in procurement, because
it allows bidders to consider a range of plant configurations in which multiple major equipment suppliers may
effectively participate.
The Salalah 2 IPP is expected to provide sufficient capacity to meet demands for the remainder of the forecast
period. The next plant addition would likely be required in 2021 or 2022, depending upon demand growth.
The High Case scenario also indicates a need for additional capacity in 2017, about 75 MW, but this may be
addressed adequately by reserves, or if necessary, supplemented by a modest level of temporary generation.
The Low Case suggests a scenario where current contracts may be sufficient until 2019 or 2020, and that the
Salalah 2 IPP would be underutilized before then. However, OPWP considers that a deferral of the Salalah 2 IPP
would pose a risk of insufficient capacity in the event of a surge in load growth, which can occur even for brief
periods with the emergence of large industrial projects.

7-Year Statement (2014-2020)

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