Oman weighs further liberalisation of electricity market
Published: 03:12 PM,Dec 10,2024 | EDITED : 06:12 PM,Dec 10,2024
Shaikh Dr Mansour bin Talib al Hinai, Chairman – Authority for Public Services Regulation
MUSCAT, DEC 10
The Authority for Public Services Regulation (APSR), the regulator of Oman’s power sector, among other utilities, is contemplating a number of landmark measures aimed at liberalizing the electricity market.
The revelation came in comments by APSR Chairman Shaikh Dr Mansour bin Talib al Hinai in an interview featured in the latest newsletter of the Energy Regulators Regional Association (ERRA), an international grouping of energy sector regulatory institutions.
Outlining some of the Authority’s regulatory priorities for implementation in the coming years, Dr Al Hinai said they include: “Actions and steps towards further liberalization and opening of the electricity market, e.g., exploring a limited bypass of the single-buyer model and allowing bilateral trading between generators and suppliers / consumers, options for introducing retail competition in the electricity supply segment, further development of the spot market and so on.”
Under extant sectoral laws, wholly state-owned Nama Power and Water Procurement Company (PWP) – part of Nama Group – is the single procurer of all power generation and water desalination capacity, as well as the single buyer of all output from these production assets, in the Sultanate of Oman.
A “limited bypass” of this bedrock regulatory principle would open the door for “bilateral trading” – an initiative that will enable generators to supply electricity directly to large consumers. The move is expected to stimulate private investment in large-scale renewable capacity earmarked predominantly for industrial or commercial use.
Another key priority, the Chairman said, is to update the Authority’s planning capabilities to align with the country’s energy transition targets for 2030 and 2040. This entails “increased coordination across the power system and economy and long-term scenario development involving all stakeholders to manage uncertainty and achieve climate goals,” he said.
Further, with the goal of building a skilled workforce, the Authority plans to develop a pipeline of skilled workers, integrate digital skills into the curricula, and manage automation impacts through reskilling and incentivizing on-the-job training to meet the demands of the power industry.
Significantly, the Sultanate of Oman, represented by APSR, will host the 22nd Annual Conference of ERRA in Muscat during May 5-6, 2025. Taking place for the first time in the Middle East, the two-day event is set to unite regulators, utility representatives, top-tier consultants, and academics in high-level dialogue that will significantly impact the future of the energy market, according to ERRA.
Dr Al Hinai hailed the forum as an opportunity for Oman to showcase its ambitious energy transition strategy. “With the global call for net-zero carbon emissions, Oman is positioned to be a key player in the journey towards a carbon-neutral world. The event will create a platform to discuss the challenges and opportunities of this complex journey of energy transition, including requirements for the policy and regulatory frameworks,” he stated.
Budapest (Hungary)-headquartered ERRA currently boasts a membership strength of 47 regulatory bodies representing a total of 43 countries globally, including Oman. It was established in December 2000 with a mandate to improve energy regulation, foster the development of stable energy regulatory bodies and ultimately to indirectly contribute to energy markets integration.
The Authority for Public Services Regulation (APSR), the regulator of Oman’s power sector, among other utilities, is contemplating a number of landmark measures aimed at liberalizing the electricity market.
The revelation came in comments by APSR Chairman Shaikh Dr Mansour bin Talib al Hinai in an interview featured in the latest newsletter of the Energy Regulators Regional Association (ERRA), an international grouping of energy sector regulatory institutions.
Outlining some of the Authority’s regulatory priorities for implementation in the coming years, Dr Al Hinai said they include: “Actions and steps towards further liberalization and opening of the electricity market, e.g., exploring a limited bypass of the single-buyer model and allowing bilateral trading between generators and suppliers / consumers, options for introducing retail competition in the electricity supply segment, further development of the spot market and so on.”
Under extant sectoral laws, wholly state-owned Nama Power and Water Procurement Company (PWP) – part of Nama Group – is the single procurer of all power generation and water desalination capacity, as well as the single buyer of all output from these production assets, in the Sultanate of Oman.
A “limited bypass” of this bedrock regulatory principle would open the door for “bilateral trading” – an initiative that will enable generators to supply electricity directly to large consumers. The move is expected to stimulate private investment in large-scale renewable capacity earmarked predominantly for industrial or commercial use.
Another key priority, the Chairman said, is to update the Authority’s planning capabilities to align with the country’s energy transition targets for 2030 and 2040. This entails “increased coordination across the power system and economy and long-term scenario development involving all stakeholders to manage uncertainty and achieve climate goals,” he said.
Further, with the goal of building a skilled workforce, the Authority plans to develop a pipeline of skilled workers, integrate digital skills into the curricula, and manage automation impacts through reskilling and incentivizing on-the-job training to meet the demands of the power industry.
Significantly, the Sultanate of Oman, represented by APSR, will host the 22nd Annual Conference of ERRA in Muscat during May 5-6, 2025. Taking place for the first time in the Middle East, the two-day event is set to unite regulators, utility representatives, top-tier consultants, and academics in high-level dialogue that will significantly impact the future of the energy market, according to ERRA.
Dr Al Hinai hailed the forum as an opportunity for Oman to showcase its ambitious energy transition strategy. “With the global call for net-zero carbon emissions, Oman is positioned to be a key player in the journey towards a carbon-neutral world. The event will create a platform to discuss the challenges and opportunities of this complex journey of energy transition, including requirements for the policy and regulatory frameworks,” he stated.
Budapest (Hungary)-headquartered ERRA currently boasts a membership strength of 47 regulatory bodies representing a total of 43 countries globally, including Oman. It was established in December 2000 with a mandate to improve energy regulation, foster the development of stable energy regulatory bodies and ultimately to indirectly contribute to energy markets integration.