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Issues and Challenges with Renewable Energy in Oman IJRET: International Journal of Research in Engineering and Technology eISSN: 2319-1163 | pISSN: 2321-7308 ISSUES AND CHALLENGES WITH RENEWABLE ENERGY IN OMAN Al Hatmi Y 1, C.S. Tan 2 1 College of Engineering, Universiti Tenaga Nasional (UNITEN), Malaysia [email protected] 2 Institute of Energy Policy and Research (IEPRe), Universiti Tenaga Nasional (UNITEN), Malaysia [email protected] Abstract This paper provides a comprehensive review of energy sources in Oman as well as looking into the structures of the electricity sector in the Sultanate of Oman. The growing population and the spacing between housing units in the territory of Oman has became a major challenges to the government in generation planning due to its limited energy resources in the country. Hence, energy has become an important sector in Omani vision 2020. Renewable energy (RE) sources form a vital and strategic solution for the provision of electric power in the Sultanate; few studies have indicated that Oman is rich in solar and wind energy. However, this sector faces many challenges, and the development of RE is at a slow pace. This paper identify the issues and challenges of RE in Oman Index Terms: Renewable Energy, Solar Power, Wind Energy, Oil and Gas, Electricity. -----------------------------------------------------------------------***----------------------------------------------------------------------- 1. INTRODUCTION which creates a significant challenge in terms of finding future employment opportunities. More than 30% of the population Oman, like other Arab gulf countries, depends on oil and gas live in a large area, which includes much inhospitable land, to produce electricity. However, these resources are not living in small communities or living a nomadic existence [1]. guaranteed to last forever, and are one of the energy security issues in the country. Some of the gulf countries have 2.2 Social Indicator diversified their energy resources—for example, the United Arab Emirates has considered the nuclear and Renewable Oman is divided into 11 governorates, and each governorate is Energy (RE) as part of their electric generation and Qatar aims divided into many Willyiah, and each Willyiah has many to generate 20% of its energy from renewable by 2024 with small villages. The main challenge is the distance between 1800MW of installed green capacity by 2020 — As for Oman, Willyiahs and between villages. This means that there are a lot the progress of RE development is at a slow pace as currently of expenses to provide these areas with electricity and link the electricity generation is still depending on the oil and gas. them to the main grid. Two RE resources that are identified to be potential in Oman 2.3 Economic Indicator highlighted in most of the technical research done in Oman are solar and wind energy. Most of the technical research papers Oman is divided into 11 governorates, and each governorate is indicate that Oman is among the best areas in the world for divided into many Willyiah, and each Willyiah has many solar energy as well as certain areas in Oman for wind energy. small villages. The main challenge is the distance between However, so far there is little progress in RE deployment in Willyiahs and between villages. This means that there are a lot Oman. The slow development of RE is probably due to the of expenses to provide these areas with electricity and link lack of policy regulation in Oman as well as the limited budget them to the main grid. Most of the industrial areas in Oman to promote RE in Oman. depend on gas. However, the gas production is not stable and may not be secure in the future, which will affect the 2. COUNTRY OVERVIEW government’s development plans and annual budget. 2.1 Geographical Factor Omani Vision 2020 seeks to reduce dependence on oil, diversify the economy and create new employment Oman is a country with an area of 309,500 sq. km on the south opportunities for all Omani citizens. The Vision 2020 also eastern coast of the Arabian Peninsula with a population of stresses on the promotion of technology transfer and the 3,090,150 . The annual population growth is estimated at 2% at increased use of natural and renewable resources, with due present, with more than 27% of the Omani Population below regard to the social and natural environment, which gives 14 years of age and with 70.33% between ages of 15 and 64, priority to the following key aspects [2]. __________________________________________________________________________________________ Volume: 02 Issue: 07 | Jul-2013, Available @ http://www.ijret.org 212 IJRET: International Journal of Research in Engineering and Technology eISSN: 2319-1163 | pISSN: 2321-7308 • Diversification away from oil and towards an export- oriented manufacturing industrial base; increasing the Table -1: The yearly average production of crude oil and gas proportion of Omanis working in the target industrial from 2000–2012 companies. 2000 2001 2002 2003 3004 2005 2006 2007 2008 2009 2010 2011 2012 • Promoting inward investment by foreign companies, with a number of incentives for new industrial companies. Crude oil 918.47 • 954.9 955.8 897.3 819.5 779.8 774.7 737.5 710.4 756.8 812.5 864.6 884.9 Promotion of clean energy technologies and the (1000 development of a conservation plan to protect the natural barrels per environment day) • 15.248 20.709 22.322 24.082 24.104 25.937 30.209 30.261 31.022 33.259 34.721 35.941 Improvement of the water supply, both for irrigation and Gas (BCM) 30230 for remote communities. (Billion • Cubic Maximise earnings from the nation’s oil resources, whilst extending reserves for future use. Meters) • Provide power from the least cost sources to meet domestic, commercial and anticipated industrial demand. Table 1 show that the production of oil is unstable. It is difficult to depend on this production in long-term While this Vision 2020 provides a clear path for all ministries development because anything could happen, and a drop in and government agencies to follow, however, the development production or in prices could affect the government’s vision of RE is still at a slow pace. for 2020. While gas production shows a slight increasing from 2000 to the end of 2012, there is no guarantee that this will 3. ENERGY INFRASTRUCTURE continue, and it is expected to go down slightly after 2017. However, in 2012 the government covered the shortage of gas Energy is a critical foundation for economic growth and social by importing around 5.4 million cubic meters from Qatar [4]. progress. However, as the economy advances and human society requires more energy, the lack of fossil energy and its 3.2 Electrical Energy pollution of the environment has given rise to conflicts between energy provision, environmental protection and The total electricity net demand increased from 13,286,792 economic development [2]. MWh in 2006 to 21,312,390 MWh in 2011, an increase of more than 62%. The electricity demand has been growing at a On the other hand, the non-fixed price of gas and the oil compounded average growth rate of 9.45% from 2006–2011, volatility led to institutions and governments promoting and it stood at 21,312,390 GWh in 2011. The peak demand at research to find other energy resources with less Muscat Interconnected System (MIS), is expected to grow at environmental impact, sustainable, stability and low costs. Up 8% per year, from 4,216 MW in 2012 to 6,582 MW in 2018, to now, there is no effective alternative for oil and gas, but and in the Salalah system at 10% per year, from 394 MW in there are hybrid alternatives that can reduce big oil and gas 2012 to 689 MW in 2018. Moreover, the rural system will attrition by mixing sources such as solar, wind and others. have an expected demand in 2018 of 685 MW. Continued efforts to find new techniques will ultimately allow Table -2: Estimation of electricity demand by system from Oman to dispense with gas and oil, which pollutes the 2012 to 2018 environment and affects the ozone layer, and find sources of 2012 2013 2014 2015 2016 2017 2018 energy characterised by continuity. MIS 4,216 4,594 5,007 5,374 5,760 6,151 6,582 System 3.1 Fossil Energy Rural 136 178 233 305 399 523 685 System The export of oil and gas is the foundation of the modern Salalah 394 433 480 531 584 636 689 economy in Oman. They are also used to fuel industry and for System domestic consumption, both directly and through electrical power generation. The domestic consumption is priced in 3.3 Electrical Grid Network relation to the opportunity costs from constraining experts [3]. Oman depends on gas and oil resources for almost all of its Gas production is more critical than crude oil, and it has a energy needs. However, the country's natural gas supplies are direct effect on Oman’s economy and power production. currently largely committed, and it may become a net importer Oman LNG and Qallat LNG are consuming a large amount of soon. natural gas to produce LNG for export. Moreover, besides the use for LNG trains, the gas is largely utilised for reinjection into the oil reservoirs to maintain pressure and sustain oil __________________________________________________________________________________________ Volume: 02 Issue: 07 | Jul-2013, Available @ http://www.ijret.org 213 IJRET: International Journal of Research in Engineering and Technology eISSN: 2319-1163 | pISSN: 2321-7308 production, while the remainder is being used in desalination the country, and diesel power stations with local grids in the plants and as fuel to generate power. The electricity supply south.
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