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Sahim Project: Maximizing Solar Potential in Oman

Learn about the Sahim Project aiming to harness renewable energy sources, such as solar power, in Oman. Discover the solar initiatives, regulatory frameworks, installation processes, and incentive schemes shaping the country's energy sector. Explore the milestones, targets, and benefits of transitioning towards sustainable energy practices to meet Oman's energy demands sustainably. Follow the steps from consultation to production stages for installing rooftop solar systems and understand the impact of renewable energy on electricity subsidies, gas savings, and emission reductions in residential areas.

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Sahim Project: Maximizing Solar Potential in Oman

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

  2. Electricity SectorMarket Framework • Electricity Subsidy (Article (19)) • Single point of injection • Calculated by the Authority • Paid by Ministry of Finance to Supply Licencees Direction of payments Direction of Transmission Authority for Electricity Regulation Water Departments Al Rusail Al Ghubrah Main Inter-connected System (MIS) WadiJizzi ACWA Barka OPWP MEDC CUSTOMERS UPC Sohar SMN Barka Majan Al Kamil OETC Al Sawadi Al Batinah Mazoon Ibri Sur Sohar 3 Others Rural Areas Generation & Desalination Distribution & Supply DGC OPWP DPC DhofarSystem SembcorpSalalah DPC/OETC Salalah 2 All intra sector transactions are: (i) regulated & (ii) fully cost reflective

  3. Electricity SectorCurrent Fuel Mix

  4. MIS : Demand Growth

  5. Renewable Energy - Large Scale • National Energy Strategy to 2030: Ensure a minimum quota for renewables to be implemented when planning for future capacity needs for the Sultanate. • Renewable Energy Target: 10% at minimum by 2025. • 2.5 - 3 GW by 2025 • Oman’s first Solar IPP : • Ibri Solar IPP, 500 MW • Second Solar IPP ≥ 500 MW • Wind • 50 MW Dhofar Wind Project • Wind resources assessment

  6. Renewable Energy - Small Scale • Rural Electrification: Regulatory policy released by Authority : • Requirement to Include Renewable Energy Component in Article (87) Electrification Funding Applications from RAEC • Requirement to Evaluate Projects Using ‘Economic’ Fuel Cost Assumptions • Feasibility study for all rural systems. • Feasibility Study • Techno-economic Feasibility Study for 11 rural sites • Aggregate capacity 40 MW • Initiate tendering process by Q2 2019 • Solar & Hybrid diesel/solar IPP

  7. 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

  8. 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

  9. 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)

  10. 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 2 3 4 Installation & Inspection Consultation Production Design

  11. 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

  12. Residential PV Programme: why? • Electricity subsidy has increased from 113 mROin 2006 to 510 mRO in 2016 • Electricity supply to residential customers is heavily subsidised • Benefits of gas savings and emission reductions 2016 Electricity Subsidy

  13. Residential PV Programme: Potential! • Gas savings over 25 years of between 2 billion Sm3 (10% MIS Res. Custs., 3kWp systems) • CO2 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

  14. 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 Q2 2019

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

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