Highlights on RE solar potentials in the Sultanate

Highlights on RE solar potentials in the Sultanate “SAHIM Project” Hilal Al Ghaithi Project Manager- “Sahim” RE Initiative

Electricity Sector Market Framework Authority for Electricity Regulation Direction of Transmission Main Inter connected System (MIS) Rural Areas Dhofar System Al Rusail Al Ghubrah Wadi Jizzi ACWA Barka UPC Sohar Al Kamil SMN Barka Al Sawadi Al Batinah Sur Ibri Sohar 3 Others Water Departments OPWP MEDC Majan OETC Mazoon Generation & Desalination DGC Sembcorp Salalah 2 Electricity Subsidy (Article (19)) • Single point of injection • Calculated by the Authority • Paid by Ministry of Finance to Supply Licencees Distribution & Supply OPWP DPC/OETC All intra sector transactions are: (i) regulated & (ii) fully cost reflective C U S T O M E R S

Electricity Sector Current Fuel Mix

MIS : Demand Growth MWh Supply 32, 000 28, 000 Pre restructuring Supply 24, 000 20, 000 Trend Projection Post Restructuring Supply 16, 000 12, 000 8, 000 MIS Losses % 4, 000 24. 6%22. 9%21. 7%21. 9% 19. 4%19. 1%16. 2% 14. 2%12. 6%11. 6%10. 0% Customer Accounts ‘ 000 9. 2% 8. 8% 875 938 1, 147 467 483 503 527 556 597 641 695 754 812 19 97 19 98 19 99 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07 20 08 20 09 20 10 20 11 20 12 20 13 20 14 20 15 20 16 20 17 0

Renewable Energy - Large Scale 1. National Energy Strategy to 2030: Ensure a minimum quota for renewables to be implemented when planning for future capacity needs for the Sultanate. Ø Renewable Energy Target: 10% at minimum by 2025. Ø 2. 5 - 3 GW by 2025 2. Oman’s first Solar IPP : Ø Ibri Solar IPP, 500 MW Ø Second Solar IPP ≥ 500 MW 3. Wind Ø 50 MW Dhofar Wind Project Ø Wind resources assessment

Renewable Energy - Small Scale • Rural Electrification: Regulatory policy released by Authority : 1. Requirement to Include Renewable Energy Component in Article (87) Electrification Funding Applications from RAEC 2. Requirement to Evaluate Projects Using ‘Economic’ Fuel Cost Assumptions 3. Feasibility study for all rural systems. • Feasibility Study 1. Techno-economic Feasibility Study for 11 rural sites 2. Aggregate capacity 40 MW 3. Initiate tendering process by Q 2 2019 4. Solar & Hybrid diesel/solar IPP

Renewable Energy - Rooftop Solar • Solar Rooftops: “Sahim” Initiative The Authority developed a new regulatory framework to: – Establish minimum technical standards for rooftop PV – Allow Distribution companies to act as agents for OPWP, the current single buyer of electricity, to buy rooftop PV-generated electricity from consumers – Establish an Incentive mechanism to compensate for electricity generated by rooftop PV panels

Regulatory Framework for Rooftop Solar PV The Authority developed a new Regulatory Framework for Small Scale Grid Connected Solar PV Systems : • Technical Standards • Connection Guidelines/process • Incentive Mechanism • Specific issues on the Safety of PV system • H&S criteria on construction sites • Minimum requirements for solar contractors

Connection Guidelines • Orientation and Inclination of PV modules: factors to be accounted for when planning to install photovoltaic panels. • The best orientation is South • The best inclination for fixed solar cells in the Sultanate of Oman throughout the year is from 20° to 24° ; • Shadowing from objects or other buildings. • Capacity limit ( ≤ 50% of the connected load)

Connection Process Consultation Stage Contact your electricity distribution company to obtain a list of contactors authorized to assess your home for the installation of Solar PV. These contactors are approved and certified by DCRP (Distribution Code Review Panel) Design Stage The Contractor will help you choose a design that is suitable for your home. The proposed design will be then submitted to your local electricity company for approval. Your contractor will ensure all approvals and permits are obtained before installation. Installation & Inspection Stage Once installation is completed by the contractor, the distribution company will be notified in order to complete the required inspection process Production Stage Upon approval, your system will be connected to the electricity grid. You’re now all set to begin producing solar energy 1 Consultation 2 3 4 Design Installation & Inspection Production

Rooftop Solar Incentive Scheme • Customer funded PV systems installed at premises will, subject to compliance with certain criteria, be eligible for remuneration at the relevant BST for PV production exported to the grid as below: Bulk Supply Tariff (BST): 2018 Off Peak Night Peak Weekday Day- Weekend Day. Peak January - March 12 12 April 14 14 May - July 16 25 67 36 August - September 16 22 26 20 October 14 14 November - December 12 12

Residential PV Programme: why? • Electricity subsidy has increased from 113 m. RO in 2006 to 510 m. RO in 2016 • Electricity supply to residential customers is heavily subsidised • Benefits of gas savings and emission reductions Residential Commercial Industrial MOD Hotels / Tourism Government 0. 1% 12% 0% 0% 2% 3% Agriculture & Fisheries 1% 10% Ministry of Defencee 1% Commercial 22% 12% Tourism Agriculture/Fi sheries Government 73% 2016 Electricity Subsidy Industrial 17% Residential 47% Main Interconnected System Supply by Tariff Category 2016

Residential PV Programme: Potential! • Gas savings over 25 years of between 2 billion Sm 3 (10% MIS Res. Custs. , 3 k. Wp systems) • CO 2 emission reductions over 25 -years of between 3. 2 million tons • Average reductions in annual customer bills of between 42% • lower investment in electricity networks and production capacity Source: AER Public Consultation on Residential PV in Oman

Sahim Residential Programme: Status • Design programme to run on a continuous basis engaging both large and SME developers • Drafting new Regulations and agreements to facilitate the initiative • Technical Advisor to assist in tendering preparations • Specialized solar PV monitoring • Customer recruitments will commence soon. • Tendering for developers Q 2 2019

Thank You For more information: www. aer-oman. org Hilal. alghaithi@aer-oman. org