Utilities

The utilities industry in Oman is going through a transitional period in anticipation of major restructuring and renewal in the water and electricity segments. While large-scale retail competition in electricity is not yet feasible, changes in technology, such as the introduction of cost-reflective tariffs (CRT), are making distributed provision more cost-effective. The most significant development in the electricity sphere is the planned introduction of a spot market to allow generators without long-term contracts to sell power on a half-hourly basis at a market-clearing price. Meanwhile, in terms of water provision, the sultanate’s procurement agency has worked hard to bring considerable new capacity on-line across Oman’s five water zones to address supply shortages during peak demand periods in 2017, particularly in the Muscat region. Oman is also on the verge of a major shift towards renewable energy as the government rolls out regulations and projects to harness power supply from solar plants and wind farms. This chapter contains an interview with Tariq Ali Al Amri, CEO, be’ah; and Omar Al Wahaibi, CEO, Nama Group.