Muscat Electricity Distribution Company invests to meet demand

09 October 2012

Utility will spend OR66.54m this year to meet increased electricity demand

The Muscat Electricity Distribution Company (MEDC) will invest heavily to meet expected growth of 8 per cent per year over the next three years in terms of electricity distribution demand in the sultanate.

Speaking at MEED’s Oman Investment Forum 2012 in Muscat on 9 October, Mansoor Talib al-Hinai, chief operations officer, supply, MEDC, said that MEDC had recorded a 44 per cent rise in electricity sold in the last five years and that “consistent growth of 8 per cent is expected in the coming years.”

MEDC sales of electricity increased from 4694 GwH units in 2006 to 6317 GwH in 2010. The company expects demand to reach 8679 GwH in 2014. Al-Hinai said that MEDC had achieved a 26 per cent growth in customer base over the past five years, in terms of customer accounts. The company’s gross assets in December 2011 stood at RO289m ($751m).

Al-Hinai confirmed MEDC planned to invest OR178m ($463m) in improving its electricity distribution network over the next three years.

“With this investment we will add 70 to 75 per cent to the value of the company’s assets,” he said.

The utility plans to spend OR66.54m in 2012, OR58.88m in 2013, and OR19.86 in 2014. The investments will be made on 11kV non-load and load related infrastructure, 33kV infrastructure and other assets.

The company is also planning to deliver services that it has traditionally used subcontractors for. “The company is now thinking of investing internally and taking it in-house,” says Al-Hinai.

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