Oman Electricity Market

SPOT MARKET

Nama Power and Water Procurement Company developed wholesale electricity Spot Market. The Market Rules governing the Spot Market are being developed by PWP under the supervision of the Authority for Public Services Regulation (APSR) and in consultation with Oman Electricity Transmission Company (OETC) and other stakeholders.

The Oman Electricity Spot Market is first of its kind in the region provides a platform for the future liberalization in the electricity sector. The launch of electricity market provides opportunities for diverse generation sources that do not usually compete in PWP’s normal PPA tender process, to improve the transparency and efficiency of the operation and to provide options for existing generation plant once their PPAs reach the end of their term. Initially the market covers the geographical area of the Main Interconnected System (MIS) in Oman.

The Electricity Spot Market will enable PWP to purchase some electricity through a short-term market run each day, with prices for each half hour set each day based on what generation companies have offered to sell. The existing P(W)PAs between Generators and PWP will remain in force until the expiry of their terms. Generators with current P(W)PAs will be obliged to participate in the spot market by submitting Offer Data but will continue to receive payments based on the terms of their respective P(W)PAs, rather than based on spot market prices.

During the past years, the Electricity Market has been under development, including the development and testing of the main IT system platform called the Market Management System (MMS). PWP started the live operation successful on the 1 January 2022 involving the parties of the market rules who has signed the Framework Agreement between all the stakeholders which are OPWP on its capacity as Market Operator, PWP on its capacity as Power Procurer, generation companies and OETC.

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