In 2018, Oman Power and Water Procurement Co (OPWP) plans launch of its electricity spot market, which would operate alongside the existing system of long-term power purchase agreements (PPAs) and power and water purchase agreements (PWPAs) offering an alternative way for producers to sell power to OPWP. Approval has also been obtained from the Authority for Electricity Regulations (AER).
Market rules will be modelled on those that have been developed in other countries with some alterations relevant to Oman.
As per the new rules, power producers would be able to sell spare capacity on the spot market and receive prices determined on a day-to-day basis as per specified market rules.
As per a statement, “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."
According to OPWP, in 2021, plants with contracts expiring in 2020 will get the opportunity to compete for new long-term contracts or to participate in the spot market.
Market rules will be modelled on those that have been developed in other countries with some alterations relevant to Oman.
As per the new rules, power producers would be able to sell spare capacity on the spot market and receive prices determined on a day-to-day basis as per specified market rules.
As per a statement, “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."
According to OPWP, in 2021, plants with contracts expiring in 2020 will get the opportunity to compete for new long-term contracts or to participate in the spot market.