Raeco plans $1bn investments in power gen
Omani utility eyes 80% capacity rise with renewables adding a quarter.
Oman’s Rural Areas Electricity Company (Raeco) plans to invest over $1bn to boost power generation capacity by almost 80% over the next five years.
Renewable energy projects, including solar and wind will provide around a quarter of the 336 MW of new capacity, according to chief executive officer Eng Hamed bin Salim Al Maghderi.
Raeco currently has an installed power generation capacity of 436 MW and a customer base of 30,000 which is expected to rise by 50% by 2019, he told the Times of Oman.
"The government, through the regulatory authority, has decided to install at least 25 per cent of this capacity as renewable energy projects," he said on the sidelines of the Oman Power and Water Efficiency and Conservation conference.
Raeco has already set up a pilot solar project in Al Mazyouna and others are planned in Thumrait and Ibri while a wind project is planned for Masirah, he said.
Around $200m will be invested in renewables to produce 90 MW, he said adding that the government is encouraging private sector investment in the sector.