OVERVIEW

This Statement provides a 7-year outlook for power and desalinated water supply in the two main systems of
Oman the Main Interconnected System (MIS) and the Salalah System. It also addresses OPWPs anticipated
activities with respect to Ad Duqm and Musandam during this period. OPWP prepares the 7-Year Statement
annually in accordance with Condition 5 of its license. This is Issue 8, for the period 2014 to 2020; previous
issues and additional information are available on the OPWP website at www.omanpwp.com.

Demand for Electricity

In the MIS, Under the Expected Demand forecast, peak demand is expected to grow at about 11% per year,
from 4455 MW in 2013 to 9133 MW in 2020. Average demand is expected to grow from 2597 MW
(corresponding to 23 TWh) in 2013 to 5023 MW (44 TWh) in 2020, an average increase of around 10% per
year. Increasing personal income, housing starts, and continuing government investment in infrastructure
projects are major contributors to continued high growth in electricity demand.
Two additional demand scenarios are considered: the Low Case projects 8% annual growth and peak demand
at 7714 MW in 2020, about 1420 MW below Expected Demand. The High Case projects 14% annual growth
and peak demand at 11284 MW in 2020, exceeding Expected Demand by about 2100 MW.
In Salalah, peak demand is expected to grow at 10% per year, from 420 MW in 2013 to 800 MW in 2020. The
Low Case considers 7% growth, reaching 676 MW by 2020, about 120 MW below Expected Demand. The High
Case considers higher growth across all economic sectors, with peak demand increasing at 12% per year to 940
MW in 2020, exceeding Expected Demand by 140 MW.

Power Generation Requirements

In the MIS, the major expected developments through 2020 include: (1) completion of the Sur IPP, which will
add 2000 MW to the generation capacity in 2014; (2) addition of a new IPP in 2017/2018, potentially at two
sites, with aggregate capacity in the range of 2600 to 2850 MW, (3) expiration of contracts at existing plants
summing to 1382 MW, of which much of the expiring capacity is expected to be extended.
In Salalah, the Raysut NPS is planned for privatization in 2014, and the Salalah 2 IPP will be developed for
service in 2018 on a power-only basis with capacity in the range of 300 to 400 MW.
OPWP is also assisting RAECO with the procurement of an IPP in Musandam with net firm capacity of about
100 MW, for operation in 2016.

Desalinated Water Requirements

Water demand in the northern region (the Interconnected Zone, and Sur Zone) is projected to increase by 6%
per year, from 238 million m3 in 2013 to 349 million m3 (i.e., 956,000 m3/d) in 2020.
In the Interconnected Zone, the principal developments include: (1) addition of 45,000 m3/d (10 MIGD) at
Barka I in Q1 2014; (2) another addition of 57,000 m3/d (12.5 MIGD) at Barka I in Q3 2015; (3) addition of the
Muscat City Desalination Plant, at Ghubrah, with capacity of 191,000 m3/d (42 MIGD) in Q4 2014; (4) addition
of a new desalination plant at Qurayyat at 200,000 m3/d (44 MIGD) in 2017; (5) addition of a new desalination
plant at As Suwayq at up to 225,000 m3/d (50 MIGD) in 2018; and (6) expiration of PWPAs at Barka I and

7-Year Statement (2014-2020)

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