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Privatisation drives Omani power needs

Posted: 18 February 2004

Stable services to 97 per cent of Sultanate underpinned by privatisation initiative

By introducing private sector investment into the power industry, the Sultanate of Oman becomes the first country in the region to allow the establishment of independent utilities, to meet the growing demand and diversify the country’s economy.

Electricity is reaching almost 97 per cent of the Sultanate today, and the government is taking initiatives to further strengthen the infrastructure.

At the Middle East Electricity Exhibition, Nelson D’Silva, the Corporate Manager of Bin Salim Enterprises, the Oman-based Lucy Switchgear agent, said: “This is a very positive step towards developing the market, and it opens up massive opportunities for leading industry technology providers such as Lucy Switchgear. With major customers such as the Ministry of Housing Electricity and Water (MEHW), the Ministry of Defense and the Ministry of Health, the company has around 90% share in the market for Ring Main Units – providing full automation and control functionality for enhanced network management.”

Peter Lymer, Director of Lucy Switchgear’s operations in the region, says: “We have seen examples of how privatisation and the introduction of competition into other sectors like GSM, has achieved for the region. By unbundling the power sector and setting up independent companies on a commercial basis, Oman becomes an even bigger and more promising market for us. Although the concept of privatising the power sector may be recent to the Middle East, it is expected to enhance stability and make the market more quality-conscious.”

Economic development, increasing industrial capacity and fast population growth is driving demand for electricity in the Arabian Gulf states. These states are expected to require an additional 100 gigawatts of power generation capacity before the year 2020 at a cost of US$150 billion (World Energy Council). The government in Oman is planning to increase the Sultanate’s electricity generation to 3260 MegaWatts by 2006, up from 2268 MegaWatts as at the end of 2002.

“As the market expands, and the pressure increases for utilities to improve quality of supply, network reliability and provide a better customer service to electricity users, finding better ways of monitoring and controlling system outages to facilitate the restoration of supply as quick as possible has become a priority. Lucy Switchgear is working closely with the regional power companies to help understand and define their requirements, and a huge part of our commitment is making the expertise and support locally available,” Lymer ended.

The Lucy Group established Lucy Middle East as a regional office in Dubai in 1997 in response to the fast growing customer requirements across the Middle East region and its focus on raising customer service standards. Lucy Switchgear FZE, was established in Jebel Ali Free Zone in Dubai during 2000 to produce international standard electrical systems competitively for the region. Working to the ISO 9001 quality standard, the plant manufactures equipment and houses full electrical testing facilities, with the capability to service, retrofit, customise and maintain all Lucy Switchgear equipment.

About Lucy Switchgear
Lucy Switchgear is a leading global manufacturer of electrical switchgear equipment. The company translates fundamental engineering research into innovative ground and pole mounted switchgear to meet the global needs of power utilities. Headquartered in Oxford, United Kingdom, with joint ventures in Saudi Arabia, India and South Africa and operations in over 50 countries the Lucy Group is a truly integrated international company.

Lucy Switchgear has over thirty years experience in supplying ground and pole mounted switchgear throughout the Middle East. The group has manufacturing facilities in Jebel Ali Free Zone in the United Arab Emirates and in Dammam, Saudi Arabia. It also has a Middle East regional office in Dubai and a UAE office in Abu Dhabi.

Posted by Richard Price, Editor Pipeline Magazine

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