The Oman Power and Water Procurement Company (OPWP),  a member of Nama group, is making preparations for the establishment of a spot market system for electricity trading in the Sultanate, the first of its kind in the region, reported the Oman Observer. The project is slotted to become operational in 2019-2020, opening up the electricity sector to competition, while also facilitating Oman’s ambitions for cross-border energy trade.

With the spot market in place, an alternative route will exist for producers to sell power to the state-owned company outside of a standard Power Purchase Agreement (PPA). This way prices will be determined on a day-to-day basis for qualified producers.

According to Trade Arabia, the two companies that will provide advisory services for this move are a global consulting and engineering services company, Poyry, and a multinational law firm, Dentons. They will be tasked with developing detailed market rules governing the operations upon a final approval of the scheme.

Poyry will serve as a technical adviser, Dentons as a legal adviser, and will be working in conjunction with OPWP’s own in-house team that is responsible for the broad concept design. The selected companies have been collaborating with OPWP since October.