or a liberalized market. This assessment is done using our proprietary integrated power and desalinated water model, ECLIPSETM
(Emissions, Constraints and Legislation Interactions in Power System Economics), to forecast the dispatch and capacity development
profile that minimizes the present value of the total system costs including fuel, operation and maintenance (O&M) and return on
capital for new investments over the forecast horizon.
contract rather than replacing it with new capacity, indicating how much OPWP should be willing to pay to re-contract it. We calculate
this by comparing the total system costs in a case where the plant is closed after the expiry of its PPA to one in which it remains open
until the end of its assumed technical lifetime. For the liberalized market approach, we calculate the plant's expected earnings before
interest, tax, depreciation and amortisation (EBITDA) in a competitive, rational economic market environment. Our bilateral methodology
evaluates the asset in both a merchant and single buyer system and therefore, as Oman heads toward a wholesale market for generation,
allows potential investors to assess the comparative value of both routes.
Oman. Phoenix Power Company SAOC owns and operates the 2,000-MW Sur gas-fired combined cycle power station, which began
commercial operations in December 2014 (representing almost 30% of total current contracted power capacity in the MIS). The owners
were obliged to offer for sale at least 35% of the total issued share capital of the project company to the public by way of an IPO on the
Muscat Securities Market. IPA was engaged earlier this year to prepare a market study and forecast of dispatch and net revenues of the
plant for its projected lifetime, to help potential investors in the IPO establish a view on its value after expiry of its PPA.
Al Ghubrah P&DC**
United PC
Al Kamil PC
ACWA P&DC
Sohar P&DC
SMN Barka P&DC
Al Batinah PC
Al Suwadi PC
Phoenix PC
Company
Private players are highlighted in blue, government-owned companies in black.
* Power Company
**Power and Desalination Company
Areas Electricity Company (RAEC), namely, the Al-Duqm region and the exclave of
the Musandam Governorate. RAEC, controlled by the Electricity Holding Company
(EHC), holds the monopoly of both generation and distribution side of the RAES.