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Oman to launch new power spot market in 2018

Regulatory green light for move to allow producers to sell un-contracted capacity.

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Oman, News

Oman Power and Water Procurement Co (OPWP) expects to launch its electricity spot market in 2018.

The spot market would operate alongside the existing system of long-term power purchase agreements (PPAs) and power and water purchase agreements (PWPAs) “providing an alternative way for producers to sell power to OPWP,” it said in its recent seven-year statement, adding that it has obtained approval from the Authority for Electricity Regulations (AER).

Market rules will be generally modelled on those that have been developed in other countries with certain modifications relevant to Oman.

Under the new rules, power producers would be allowed to sell spare capacity on the spot market and receive prices determined on a day-to-day basis in accordance with specified market rules, the statement added.

"This may include capacity associated with generators whose long-term supply contracts have expired, or capacity in excess of contractually guaranteed capacity that plant owners have built into their facilities or that may be available under certain operating conditions.

“At present OPWP has not assessed any value to potential additional peak capacity that may be made available via the spot market."

OPWP added that in 2021, plants with contracts expiring in 2020 will have the opportunity to compete for new long-term contracts or to participate in the spot market.

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