Balabel

The electricity industry in Oman has evolved significantly to provide a wide range of opportunities across the value chain, in both, the regulated as well as deregulated businesses. Our market is the world’s fifth largest in terms of generation capacity and the third largest in terms of network. The growing demand, network extension, and upgradation, reduction in energy intensity, unbundling of supply services and growth of cross-border trade present various opportunities for this industry. However, a number of challenges remain, such as of fuel supply, counter-party risk posed by distribution companies, monopoly restrictions on open access and the availability of project finance.

We have been active advisors to the electricity industry and associated with many landmark developments over this time. The power sector advisory team has over 150 specialist staff bringing a rich life-cycle experience to our client's planning, developing or scaling their electricity business in Oman.

Power generation

The business is de-licensed and offers huge opportunities for merchant plants, regulated plants through competitive bids, captive and group-captive structures. The new procurement regulations reward strategies derived from coal mining and sourcing, equipment procurement, competitive insights, tax planning, tariff design and financing.

Distribution

Recent projects show that investors use a mix of strategies, such as capex planning, advanced metering and outsourcing operations among other services to enhance revenue potential and shorten turnaround time.

Renewable energy

The market opportunity is large with a share of renewable energy targeted to go up from 4 to 15% this decade. The sector is competitive with the entry of new entrepreneurs especially in wind, solar and small hydro. We have advised a number of renewable investors in planning, financing, acquiring, scaling-up and diversifying their renewable energy interests.