Electricity tariffs based on long-run marginal costs for central grid system of Oman |
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Authors: | Arif S Malik Salem Al-Zubeidi |
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Affiliation: | 1. Department of Electrical & Computer Engineering, College of Engineering, P.O. Box 33, Sultan Qaboos University, Al-Khod 123, Sultanate of Oman;2. Dhofar Power Company, Sultanate of Oman |
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Abstract: | The electricity tariffs in Oman are subsidized and are based on a cost accounting approach and do not reflect the true cost incurred in generating, transmitting and distributing a kilowatt-hour of electricity at the consumer end. This paper presents the electricity tariff based on the estimation of long-run marginal cost at generation, 33 kV, and 415 voltage level for Ministry of Housing, Electricity & Water (MHEW) interconnected power system of Oman. The result shows that at the generation level a marginal kW costs US$ 75 per year and a marginal kWh costs 2.07 ¢/kWh. These costs increase as we move downstream from generation to consumer end. The average cost of electricity at the consumer end connected at 415 V is 6.52 ¢/kWh or 25.17 Bz/kWh. |
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Keywords: | Long-run marginal cost Electricity tariffs Power planning |
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