Electricity transfer capacities between Oman and the United Arab Emirates (UAE) could potentially double once the UAE goes ahead with a plan to upgrade its side of the interconnection system currently linking the two countries’ networks.

According to the wholly government owned Oman Power and Water Procurement Co (OPWP), the proposed upgrade by the Abu Dhabi Transmission and Despatch Company (TRANSCO) of its side of the 220 kV link will augment the transfer capacity of the interconnect from the present 200 megawatts (MW) to 400 MW.

Last December, both countries brought into operation the interconnect linking the Sultanate’s Main Interconnected System (MIS) and the transmission grid of TRANSCO Abu Dhabi at Al Wasit. The 220 kV double circuit link currently supports electricity transfers of up to 200 MW.

“The main purpose of this interconnect as currently envisioned is to support reserve sharing, subject to the availability of surplus generation in either system. TRANSCO Abu Dhabi expects to award a project in 2012 to upgrade its side of the link to 400 kV. This will upgrade the transfer capacity of the interconnection to 400 MW by 2015,” OPWP stated in a recently released projections on power and water demand in the Sultanate.

Under a bilateral deal concluded by the governments and Oman and the UAE in April 2010, the two sides agreed to link their power grids initially to allow for the transfer of up to 200 MW of power. Transfer capacities can be eventually ramped up to 600 MW if planned upgrades are implemented.

According to OPWP, an upgraded interconnect will allow for enhanced energy imports from the UAE, or vice versa, in the event of shortfalls in generation capacity. A similar interconnect between the Main Interconnected System (MIS) and the power system of Petroleum Development Oman (PD) at Nizwa, enables the transfer of around 60 MW of capacity.

Both the Abu Dhabi and PDO interconnections could potentially support “commercial” imports in the future – based on the relative costs of generation in the respective systems,” said the offtaker.

In fact, a number of industries and government establishments that have captive power plants have committed their surplus, unused capacity to OPWP under short-term Power Purchase Agreements.


Sohar Aluminium, which operates a giant smelter at Sohar, has committed exports of up to 300 MW during summer, while importing a similar amount from OPWP during winter.

Oman Mining Company has made available 20 MW of capacity, while supply commitments from Oman Cement, Oman India Fertilizer Company, and Ministry of Defence are also expected to be renewed as well.

“Access to these captive power generation resources is useful in two respects. Firstly, they provide a source of contingency reserve for the MIS, over and above the reserve margin provided by OPWP’s portfolio of contracted capacity. And secondly, they can in some instances provide an economical source of energy — by providing low cost energy to the MIS in place of higher cost energy from contracted generation capacity, the overall cost of energy for the MIS can be reduced. The agreements in place with the respective parties are specifically designed to allow both of these benefits to be obtained,” OPWP added.