RenewableEnergyResources in Oman This project is potentially very significant, as it could provide the basis for a larger scale wind farm of between 500 to 750 MW (assuming interconnection of the Main Interconnected System and the Salalah Power System). Other Recommendations for immediate implementation We offer two further recommendations: 1. Interest in CSP technology has increased considerably in recent years and we expect there to be significant growth in the utilisation of this technology in areas with high solar energy potential. In order to evaluate the present potential for this technology in Oman we recommend an immediate feasibility study to clarify the present and future technical and economic viability of CSP technology in local conditions. The study should make specific recommendations with regard to timing and locationfor the introduction of CSP technology in Oman; and 2. We see significant scope for introducing solar thermal collectors in public buildings to produce hot tap water. This measure could be implemented easily and quickly and consideration should be given to stipulating this as a mandatory requirement in all new buildings that have characteristics to support the technology. Page 26 of 133 .
RenewableEnergyResources in Oman 2 Recommendations: Policies to support Large Scale Projects The study has identified significant potential sources of renewable energy in the Sultanate of Oman. However, if solar and wind energy resources are to be utilised on a large scale, as we believe they could, new policies and funding mechanisms will be needed to support and encourage renewable energy investment. Policy Development Recommendations – Financial issues Table 2.3 summarises policy instruments used in other jurisdictions to facilitate renewable energy projects, and indicates in the final column the suitability of each policy instrument forOman. Table 2.3 Policy Instruments to Promote RenewableEnergy Instrument PROs CONs Suitable forOman? Environmental Taxes Creates even playing field for renewable energy Difficult to estimate objectively the optimum level of tax. Tax would increase supply costs and subsidy but not induce change in consumer consumption. Limited Applicability Tax Credits Creates incentives for investors May distort market prices Applicable Green Marketing Based on willingness to pay (WTP) and optional schemes Difficult to control and limited informationon consumer WTP Probably very little impact in Oman. Limited Applicability Investment subsidies Increase incentives to establish and invest in renewable energy generation May result in overinvestment May create new subsidy flow in the system to investors. Applicable Feed in Tariffs Efficient in promoting RE if monitored carefully and changed in accordance with technological developments Investor risk if removed for political reasons Applicable RenewableEnergy Quotas Effective way to promote renewable energy projects New tendering procedures required but simple to administer. Easily accommodated in OPWP and RAEC tendering systems. Tends to promote established technologies Applicable Page 27 of 134 .