Renewable Energy – On a roll
The development of renewable energy is an ongoing process and although it may not be viable today, it may soon become relevant for Oman due to newer technologies, writes Visvas Paul D Karra

There are two reasons why the quest for renewable and alternative energy has taken on a new tone of urgency. Firstly, the era of easy oil is over and the cost of extracting the remaining fossil fuel will not be able to match the demand for energy, which is expected to double by 2050. The second reason is of course the almost ubiquitous word “green’. Although it has become a fashionable statement to talk green, the green umbrella will not be able to withstand the weight of the actual CO2 emissions, which have reached alarming levels. And the only way to reduce the emissions is by alternative energy. And that is how, everyone is in a frenzy to join the chase for renewable or alternative energy. It has been estimated that the amount of sunlight reaching the earth every 70 minutes is equivalent to annual global energy consumption. Also less than four per cent of the desert area of North Africa and the MENA region could generate enough electricity to meet the annual global electricity demand and less than one per cent of this desert area could meet the electricity requirements of the Gulf region and Europe. “In May 2008 the Authority for Electricity Regulation (AER) published a study commissioned to assess the Sultanate’s renewable energy potential. The study confirmed the Sultanate’s significant solar and wind potential. Qais Saud Al Zakwani, regulatory advisor at the AER disclosed that towards the end of 2008, the Authority invited the Rural Areas Electricity Company (RAEC) to identify possible locations for diesel system hybrid pilot projects, and make information available for potential developers. Several international and local companies expressed interest in developing pilot projects within the preliminary framework developed by the Authority and after initial coordination with RAEC submitted renewable energy pilot project proposals to the Authority for approval. There are around 54 rural sites which are not connected to the main power grid which at present are being run on diesel power to generate electricity by RAEC.

The level of solar energy density in Oman is among the highest in the world. There is significant scope for developing solar energy resources throughout Oman and solar energy has the potential to provide sufficient electricity to meet all of Oman’s domestic electricity requirements and provide some electricity for export. High solar energy density is available in all regions of Oman. The study also identified significant wind energy potential in coastal areas in the southern part of Oman and in the mountains north of Salalah. Wind speeds in these areas are comparable to recorded wind speeds at inland sites in Europe where large numbers of wind turbines are installed and operational. Wind speeds are observed to be highest in summer months which coincide with peak periods of electricity demand in Oman.

Pilot project
According to HE Mohammed bin Nasser Al Khasaibi, Secretary General of Ministry of National Economy, pilot projects have been recommended in rural areas to test the performance and efficiency of renewable technologies in local conditions and provide Omani companies with experience of operating and maintaining renewable plants. To further progress the renewable initiative, the Authority appointed international consultancy firm COWI to assist with reviews and approval of renewable energy pilot projects. The Authority is currently reviewing seven proposals to generate wind and solar power.

On a macroeconomic scale, the Public Authority for Electricity and Water (PAEW) is in the process of recruiting international advisors to conduct a feasibility study for a large solar plant in Oman. HE Khasaibi is confident that a large solar plant will be found to be feasible. Once it is confirmed, then PAEW will permit the setting Oman’s first large scale solar power plant by 2010.

Alternative energy
The government of Oman has to take concrete steps to promote alternative/renewable sources of energy and only then will companies come forward to set up projects here, says K S Cheema, executive director, legal and projects, Omzest Group. “The government should appreciate that conventional energy is cheap in Oman because oil and gas is subsidised. But I am happy that the government has undertaken a study on renewable sources of energy and has also invited interest to undertake feasibility study for such projects and for setting up small pilot plants for electricity generation based on solar and wind energy resources,” adds Cheema. Omzest group has recently invested in an international company, which has developed a technology to convert solid wastes into synthesis gas and in turn into electricity. In the Muscat area, around 400,000 tonnes of solid waste is generated every year. This is dumped into designated landfills near the capital area of Muscat. This waste could be segregated and used to produce energy with the help the technology developed by the company, in which Omzest group has recently invested. “If the government gives us the go ahead we can use this waste to produce energy. This way the government would be able to get rid of the environmentally hazardous landfills and at the same time generate power using this alternative source. The government has to decide upon an appropriate tariff for buying power from such projects, which will make these projects feasible for a private investor like us. They should not compare it to the cost of power generated by conventional plants using natural gas in Oman, which is highly subsidised,” Cheema opines.

Clear policies
According to Cheema if the government pursues alternative/renewable sources of energy to produce power, they could reserve and divert the precious natural gas for other industrial projects, which are presently not coming to Oman because of non-availability of natural gas for new projects. This way, the country would be able to invite foreign investments not only in the renewable energy sector but also in the industrial sector as well. “By developing policies, which can support and sustain projects based on alternative and renewable sources of energy across the country, we will all be contributing to the vision of His Majesty The Sultan and will help in the economic expansion of Oman,” Cheema says.

Zakwani also added that the Renewable Energy Study recommended the development of policies and funding mechanisms and encourage renewable energy investments in Oman which will generate interest among international companies to come to Oman. According to Zakwani, there are several instruments that need to be put in place as a matter of government policy which will facilitate the implementation on renewable projects. The study published by AER suggested tax credits and investment subsidies; feed in tariffs for both small and medium sized projects; renewable energy quotas requiring a certain percentage of total system capacity to be sourced from renewable energy sources; and the establishment of a designated national authority (DNA) to facilitate and administer clean development mechanism projects.

Multiple benefits
A successful renewable energy strategy offers the prospect of wider environmental and social benefits. Renewable energy used to produce electricity emits zero green house gases (GHG). Using renewable energy technologies in place of conventional fossil fuel plant would therefore reduce GHG emissions in the Sultanate including CO2s. The reduction in GHG emissions (carbon would be approximately 175 kg/MWh where renewable energy replaces natural gas and 212 kg/MWh when diesel fuel is replaced. Total savings in GHG emissions will depend upon the contribution of renewable energy technologies to total electricity supply.

If the renewable energy industry takes off in a big way in Oman, it could stimulate and promote Oman-based manufacturing of renewable energy products for domestic use and export and at the same time promote renewable energy support services. A successful renewable energy strategy would enhance employment opportunities for Omani nationals in manufacturing and support services and nurture expertise in new technologies and more economic activities.
 

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