Investments in Service Sectors Stand at RO 2.83 Billion by End of
2024
Muscat, 24 Feb (ONA) —
The Authority for Public Services Regulation (APSR) has announced the
implementation of 10 future projects and initiatives in the fields of energy,
renewable energy, water and wastewater as part of supporting the Sultanate of
Oman’s efforts to achieve net zero carbon emissions and targets of Oman Vision 2040, in cooperation
with government departments and licensed companies.
This was unveiled at an annual media gathering
organized by APSR today under the auspices of Eng. Salim bin Nasser Al Aufi,
Minister of Energy and Minerals.
Dr. Mansour bin Talib Al
Hinai, APSR Chairman, said that the authority is revising
the costs of service sectors to ensure the sectors’ governance in line with plans
to cut down the value of government subsidy.
Dr. Mansour announced that future initiatives include a project to maximize benefits
from Wadi Dhaiqah Dam by awarding a water purification and energy storage tender,
a feasibility study for utilizing geothermal energy, a project to exploit
waste in energy as biofuel for cement, a community stations project to produce
solar power through optimal use of health and educational facilities in the
Sultanate of Oman and the preparation of a regulatory framework for energy
transmission.
The initiatives also include a project for the
completion of a study to launch competition in electricity supply, APSR’s
support for 5 scholarships of the Master’s programme on sustainability in
cooperation with the Sultan Qaboos University (SQU) in regulatory specializations
and the launch of a programme whereby companies bear fees for issuing an
electrical license for Omani citizens over a period of 5 years, in addition to
an initiative to bear the cost of a 3-year training programme for 500
technicians to obtain a certified electrician’s license.
Dr. Mansour also reviewed the performance standards of regulated companies, saying that
statistics in this field point to a 9 percent rise in the percentage of
renewable energy production out of the total energy production in the Sultanate
of Oman that was achieved in 2024.
With a view to the Authority’s follow-up of
compliance with the electricity sector’s rules, operating standards and Omani specifications
on health and safety, Dr. Mansour spoke about the accomplishment of 95 percent of
targets for the year 2024. That was in addition to a 75 percent rise in beneficiary
satisfaction, up from 70 percent as a target rate in 2024. Meanwhile, the rate
of continuous water flow stood at 97 percent.
Dr. Mansour also spoke about a transition plan that
will continue until 2030 by devising a specific track for sustainable energy
projects that will be implemented by licensed companies. He explained that the transition
plan included the opening of the Dhofar 1 wind energy project (opened in 2019)
which produces 50 megawatts, Ibri 2 solar energy project (which already entered
service with a production of 500 megawatts) and Manah 1 and Manah 2 solar
energy projects (which entered service in early 2025 to produce 1,000 megawatts).
Giving a breakup of the 2030 energy transition strategy,
Dr. Mansour said that projects that will be implemented in 2027 include Ibri 3
solar energy project to produce 500 megawatts, Duqm wind energy project to
produce 250 megawatts, Jalan Bani Bu Ali wind energy project to produce 100
megawatts, Dhofar 2 wind energy project to produce 120 megawatts, Sadah wind
energy project to produce 90 megawatts and Mahout 1 wind energy project to
produce between 300-400 megawatts.
In 2028, the envisaged projects include Mahout 2
wind energy project (whose capacity will range between 300 and 400 megawatts), Al Kamil
solar energy project to produce 280 megawatts and another solar energy
project to produce 220 megawatts, he explained.
He added that projects that will be implemented in
2029 include the “2029 Project for Solar
Energy”, scheduled to produce 1,000 megawatts, in addition to Shaleem Wind
Energy project to produce 100 megawatts and Al Jazir Wind energy project to
produce 100 megawatts.
In 2030, a project will be implemented to produce
3,000 megawatts of solar energy, he said.
Dr. Mansour stressed that APSR was able to cut down
the average timeframe of electricity connection to homes to two days—the same
target percentage for the year 2024. This is in addition to cut down the
average timeframe of water connection to homes to 5 days from a target of 7 days,
said Dr. Mansour, noting that the percentage of treated wastewater was raised
to 98 percent.
He pointed out that the contribution of the
electricity and water sectors to the Gross Domestic Product (GDP) rose from 2.2
percent in 2020 to 2.5 percent in 2024, while the volume of investments in the
regulated sectors during the period from 2020 to 2024 stood at about RO 2.837
billion. Of this, electricity distribution companies’ contribution stood at RO 773
million, compared to RO 652 million by Oman Electricity Transmission Company,
he said.
He added that the contribution of the natural gas
transmission sector stood at about RO 192 million, while the contribution of
the water and wastewater sector stood at about RO 860 million. In the
electricity generation sector, the volume of investments stood at RO 450
million, he said.
Dr. Mansour pointed out that licensed companies
achieved 98.5 percent Omanization rate of the total number of employees.
He added that APSR endorsed 15 regulatory
frameworks in the field of subscriber rights, 8 frameworks in the field of
ensuring service reliability and quality and 4 frameworks in the field of
security and safety. In addition, 14 licenses were announced for a number of
companies operating in the sectors of energy, water and wastewater.
Dr. Mansour said that it is prohibited to cut off
services on the last working day of the weekend or during weekly holidays
between 5 pm and 7 am or during the days of exams of the General Education
Diploma (GED) or the month of Ramadan.
For his part, Khalfan bin Nasser Al Bartamani, Head of
Commercial Affairs at Nama Electricity Distribution, outlined strategic
projects implemented by licensed companies in the water sector. The projects,
he said, include the supply line for South A’Sharqiyah and North A’Sharqiyah
governorates, the Sohar-A’Dhahirah water transmission line project, a project
to enhance water transmission to the governorate of A’Dakhiliyah, and a project
to enhance the water system between the desalination plants of Barka and Sohar,
in addition to the inauguration of various desalination plants and wastewater plants.
Al Bartamani said that the cost of electricity
sector projects during the years from 2020 to 2024 stood at RO 1.785 billion,
of which RO 450 million went to electricity generation, RO 562 million spent on
electricity transmission and RO 773 million for electricity distribution.
He added that the growth in the number of subscribers
in the electricity sector stood at 13 percent.
He explained that the water sector saw 6 percent growth
in the number of subscribers between 2020 and 2024.
Al Bartamani said that the growth rate in the natural
gas transmission sector increased by 3 percent in terms of network capacity.
He pointed out that the rate of actual readings rose
to 96 percent in the water sector and 97 percent in the electricity sector. He
added that that the rate of conversion to smart meters stood at 75 percent in
the electricity sector and 80 percent in the water sector.
— Ends/Bishara/Khalid
