SECTION 2

SALALAH SYSTEM

The Salalah System covers the city of Salalah and surrounding areas in the Governorate of Dhofar, serving
around 77,000 electricity customers.
Until recently, the generation, transmission and distribution system were owned and operated by Dhofar
Power Co. (DPC) pursuant to a Concession Agreement signed with the Government in 2001. Effective from
January 1, 2014, the Concession Agreement has been terminated and DPC has been restructured: the
generation activities and assets have been transferred to Dhofar Generating Company (DGC), the
transmission activities and assets have been transferred to Oman Electricity Transmission Company (OETC),
and the distribution and supply activities and assets have remained with DPC. DPC acts as the sole
electricity supplier within the service area covered by the system, supplying existing and new electricity
customers. In addition to the generation assets owned and operated by DGC, there is an independent power
generation and water desalination facility (the Salalah IWPP) in the Salalah system, operating under a
PWPA with OPWP.
The Salalah System is interconnected with the power system of Petroleum Development Oman (PDO) via a
132 kV link between Thumrait and Harweel, with transfer capacity up to 150 MW. This interconnection
provides important reliability benefits through the sharing of generation reserves.
The Directorate General of Water (DGW) is the principal entity responsible for potable water supply and
distribution in the Governorate of Dhofar, apart from small, private networks. The Salalah IWPP supplies
desalinated water to the DGW transmission system, and is currently its principal source of water supply.
OPWPs role in the Salalah System is similar to its role in the MIS, which is to procure economically the
power and desalinated water required by DPC and DGW, respectively, in bulk from generation/production
facilities connected to the Salalah System. OPWP is required to ensure that sufficient power generation
resources are available to meet DPC electricity demands. OPWP is also required to procure bulk water
supply at the request of water departments including DGW, and, wherever beneficial, to co-procure
desalinated water with power generation in joint facilities.

7-Year Statement (2014-2020)

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