7-Year Statement (2014-2020) Page 38

2014 2015 2016 2017 2018 2019 2020

Thousand m3/d

Peak Water Demand 82 89 96 104 112 122 132

Capacity Target: Peak + Margin 93 100 111 118 128 139 151

Contracted Desalination Capacity

Salalah IWPP 68 68 68 68 68 68 68

Reserve over Target Capacity -26 -34 -42 -51 -60 -71 -83

Reserve over Demand -14 -21 -28 -36 -44 -54 -64

DGW has access to substantial groundwater resources to meet this supply gap until additional desalination

capacity can be constructed. DGW has advised OPWP that its medium-term objective is to minimize the use of

groundwater except for contingency purposes. Groundwells were sufficient to meet the 2012 peak water

demand of about 61,000 m3/d, although it is evident that consumers prefer the quality of desalinated water.

Thus the groundwater resource may be sufficient to meet planning contingencies through 2018 if required, or

possibly longer. OPWP plans to work closely with DGW to plan the best approach for adding new desalinated

water capacity. A new plant with capacity of about 80,000 m3/d (18 MIGD) would need about 4 years to

develop and could potentially be available late in 2018 if procurement activities begin in 2014.

2.5 COMBINING POWER GENERATION AND WATER DESALINATION

As in the MIS, OPWP is required to consider the opportunity for combining power generation with water

desalination in the Salalah System, so as to benefit from economies of co-location and co-procurement. An

assessment of these potential benefits led to the decision by OPWP to proceed with the Salalah IWPP the

first combined power and desalination plant to be developed in the Salalah System.

OPWP considered the Salalah 2 IPP tender as a potential opportunity for combining power generation and

water desalination at one site. However, DGW advised in 2013 that it was too soon to commit to additional

desalination capacity, and therefore OPWP has proceeded with the project on a power-only basis.

As needs for additional water desalination and power generation capacity are confirmed, OPWP will continue

to assess the potential for economic benefit that may result from co-location and co-procurement.

2.6 PROCUREMENT ACTIVITIES

Current Projects

OPWP plans to issue a tender in the first quarter of 2014 for the Salalah 2 IPP at Raysut, with minimum

capacity of 300 MW and maximum capacity of about 400 MW. This tender for new capacity will also include

the sale of the existing NPS (273 MW), such that respondents will submit a combined bid for ownership of

both plants. It is expected that, upon award in 2014, the successful bidder will take over ownership of the NPS

(from DGW) under a PPA with OPWP, taking over the plants operation, whilst also commencing construction

of the new plant. The COD of the Salalah 2 IPP is projected as January 2018, at which time the combined

capacity of the two plants is expected to be in the range of 573 MW to 673 MW.