In 2014, OPWP has initiated discussions with the owners of the plants at Ghubrah, Wadi Jizzi, Al Kamil and

Barka I, to extend contracts to 2020. Extensions are to be made only on a guaranteed capacity basis, subject to
independent technical evaluation, and at economic commercial terms.
For planning purposes, OPWP has estimated the amount of capacity that is likely to be extended in Table 2
below. Generally, gas turbine plants are expected to have an economic life of about 30 years. In most cases,
the level of investment and refurbishment required to extend plant life beyond that period is not economically
viable. For this reason, Table 2 does not include capacity associated with units that will be more than 30 years
old at the time of contract expiration. However, the plant owners will ultimately make this economic
determination and consequently, the amount of capacity actually extended may be somewhat greater or less
than what is indicated.

Table 2

2014

2015

Prospective Contract Extensions

2016

2017

2018

2019

2020

Net MW a
Ghubrahb

235

235

235

Wadi Al Jizzic

81

173

173

173

204

235

Kamild

282

282

282

282

435

435

435

81

173

455

1125

1156

1187

Al

Barka I
TOTAL

All capacities are rated on a net basis (i.e. after allowing for auxiliary consumption inside the plants) at 45C ambient
temperature.
b Includes GT 12, GT 13, ST5 and ST6.
c Includes GTs 3-13.
d A 15 MW increment is available on a year-to-year basis at Al Kamil as a performance enhancement, requiring also an
operating regime at base load. This increment is not included in the indicated capacity but may be added on an asneeded basis such as in a year of insufficient total contracted capacity. For example, OPWP has contracted for this
uplift in the past to offset the need for temporary generation.

OPWP has initiated the procurement process to contract at least 2600 MW of new capacity: 740 MW to be
operational for summer 2017 and at least an additional 1860 MW for summer 2018. Following an extensive
site assessment study, and consultation with key stakeholders, sites are being considered at Ibri, Sohar, and As
Suwayq. The tender is expected to be issued by June 2014 for contract award early in 2015.
The Sultanate has significant opportunity to develop renewable energy resources, particularly solar and wind
energy. Several small-scale projects are already operational or under development in rural areas, displacing
diesel generation. OPWP expects the Government to define its renewable energy policy in the near future to
include large-scale, grid-connected projects. Subject to the Government providing a final go-ahead, OPWP
expects to procure around 200 MW of solar generation capacity for the MIS, potentially to be in service by
2018. OPWP is currently collecting data from two instrumentation stations to support this endeavor. Whilst
this capacity is expected to be committed to OPWP via a PPA, the inherent intermittency risk associated with
solar generation (unless mitigated with energy storage) may lead to the effective capacity of the plants for
resource adequacy purposes being somewhat less than the nominal capacity. Until proven as peak capacity,
we show this resource in the category of contingency reserves.
7-Year Statement (2014-2020)

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