Economic perspective of PV electricity in Oman

Solar and wind energies are likely to play an important role in the future energy generation in Oman. This paper utilizes average daily global solar radiation and sunshine duration data of 25 locations in Oman to study the economic prospects of solar energy. The study considers a solar PV power plant of 5-MW at each of the 25 locations. The global solar radiation varies between slightly greater than 4 kWh/m2/day at Sur to about 6 kWh/m2/day at Marmul while the average value in the 25 locations is more than 5 kWh/m2/day. The results show that the renewable energy produced each year from the PV power plant varies between 9000 MWh at Marmul and 6200 MWh at Sur while the mean value is 7700 MWh of all the 25 locations. The capacity factor of PV plant varies between 20% and 14% and the cost of electricity varies between 210 US$/MWh and 304 US$/MWh for the best location to the least attractive location, respectively. The study has also found that the PV energy at the best location is competitive with diesel generation without including the externality costs of diesel. Renewable energy support policies that can be implemented in Oman are also discussed.

Research highlights
► The global solar radiation values for 25 locations in Oman are obtained using satellite data that are corrected by data from ground stations.
► The study considers a solar PV power plant of 5-MW to calculate the capacity factor (CF) and the cost of energy (COE) at each of the 25 locations.
► The study has found that the CF of PV plant varies between 20% and 14% and the corresponding COE varies between 210 US$/MWh and 304 US$/MWh for the best location to the least attractive location, respectively.
► The study has found that the PV energy at the best location is competitive with diesel generation without including the externality costs of diesel.
► Since PV energy is not competitive with fossil fuel-based generation in most locations renewable energy support mechanisms have been reviewed.