Study on Renewable Energy Resources, Oman - authority for ...

Renewable Energy Resources in Oman
6.3 Overview of generation costs in Oman
Fig. 6.4 shows the relation between the cost of generation for conventional
plants, wind turbines at five specific sites, a 20 MW solar thermal plant and the
grid connected 20 MW PV plant. The figure also shows the current average cost
of 0.31 USD/kWh, excl. RAECO areas. The assumed gas price is 1.5
USD/MMBtu also for new generation capacity.
Fig. 6.4 Overview of generation cost for new capacity in Oman USD/MWh
USD/MWh
250
207
5000 hrs
7500 hrs
37 35 31 28
76 70
48
39
67 74 71
89 89
GT
140MW
CCGT
400MW
HFO
300MW
COAL
1000MW
Wind Wind
(Qairoon) (Thumrait)
Wind
(Masirah)
Wind
(Joba)
Wind (Sur)
Solar
Thermal
20MW
PV 20MW
The figure indicates that Gas Turbines or Combined Cycles plants have the lowest
average production cost. However the table also shows that based on the present
costs of solar systems wind power is the most competitive of the renewable
energy sources. It has significantly lower cost than CSP and PV power plants.
6.3.1 Impact of Wind Farm on Generation Expansion
In OPWP's 7 year statement for 2007-13, Ref /5/ a number of scenarios has been
analysed. Common for all scenarios is that the new generation units will be gas
turbines and combined cycle units.
The economic effects by replacing a minor part of the planned capacity by wind
turbine capacity are illustrated by the following example. It is assumed that 40
MW wind power plant replaces 40 MW gas power plant.
The establishment of 40 MW wind farm will have the following main effects on
the Omani power system:
• The electricity generation from the wind farm will reduce electricity generation
(GWh) at other plants in the system, and thereby lead to decreased
fuel costs, variable O&M costs, and emissions
• The wind farm will contribute to the installed capacity in the system
(MW). Due to wind speed variation the net capacity contribution by wind
turbines is less than the installed capacity.
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