The scope of renewable energy in EVs in Oman
Published: 02:12 PM,Dec 01,2024 | EDITED : 06:12 PM,Dec 01,2024
In today's world, the energy and transportation sectors are facing critical issues in solving some of the century's most pressing concerns, including the struggle for energy independence, the fall of oil supply, global warming and climatic change. Given Oman's heavy reliance on oil—which accounts for around 28% of total energy consumption—there is an urgent need to shift to more sustainable transport modes, such as electric vehicles (EVs).
The EV business is one of the fastest expanding sectors of the world and the most environmentally friendly alternative to traditional modes of transportation. The worldwide automobile industry is transitioning to electric vehicles (EVs) for more sustainable mobility.
The Middle East, which has traditionally relied on oil, is rapidly adopting electric vehicles due to government initiatives, infrastructure investments, and increased environmental concerns due to climatic change. This transformation is critical to the Gulf region's long-term energy and economic diversification.
The Sultanate of Oman is pushing for cleaner and renewable energy, with a focus on electric vehicles. The country predominantly depends on natural gas, which makes up 71% of its energy consumption, but oil remains critical for powering vehicles. The transportation sector in Oman consumes a notable share of the country's energy, largely due to its reliance on oil products.
In 2021, transportation accounted for a significant portion of oil's approximately 28% total energy consumption. Oman is aggressively pursuing its goals to cut carbon emissions from the transportation sector, aiming for carbon neutrality by 2040 and with plans to phase out all cars that run on fossil fuels by 2050.
As such, transitioning to electric vehicles not only cuts emissions but also reduces economic vulnerability to oil price fluctuations. The government plans to expand the charging infrastructure with a target of 300 stations by 2025 across major cities like Muscat and Sohar. However, the public lacks access to a central database that provides data on the current deployment of electric vehicles. The Authority for Electricity Regulation is working on regulations to govern and enforce the use of electric vehicles in the Sultanate.
The promotion of electric cars is a key component of Oman’s energy transition policy. By 2030, 7,000 EVs are expected to be registered, accounting for 35% of new light vehicle registrations; by 2040, that number is expected to rise to 22,000 EVs, or 65% of new vehicles. Additionally, the Ministry of Transport, Communications, and Information Technology (MTCIT) is leading a phased carbon reduction program in Oman that aims to transition trucks and heavy machinery to hydrogen and electric technologies.
By 2029, Oman expects the EV market to be a size of $805.32 million.
Government incentives, such as tax rebates, subsidies, and laws requiring service stations to provide EV charging stations, support this expansion. While private sector cooperation is aggressively promoting the construction of easily accessible and effective charging infrastructure, the government has also implemented steps to address issues like range anxiety and the high initial cost of EVs.
In a noteworthy move to diversify the economy and lessen dependency on oil and gas exports, Mays, Oman's first indigenous EV manufacturer, is gearing up activities to introduce its debut model, the Alive 1, priced at $38,964. Complementing these efforts, Oman is developing its renewable energy projects to support the growing EV ecosystem and broader sustainability goals.
The country has started several projects, including wind farms in Dhofar, solar-diesel hybrid facilities, and small-scale solar panel installations under the Sahim program. It has also operationalized its largest utility-scale solar photovoltaic project, Ibri 2. Achieving the goals of 79% electric vehicles by 2035 and switching to a zero-emission transportation system by the middle of the century depends on the combination of renewable energy and EV uptake.
Despite all the positive aspects, the EV market confronts a number of hurdles and limits, such as a lack of charging infrastructure, high setting-up costs, poor confidence level in customers, and range anxiety.
Despite these hurdles, the Oman EV industry is expected to grow significantly in the next years as a result of ongoing government backing, increased partnerships, and a number of collaborations between the government and the private sector, including international companies.
Robust data and a dedication to sustainability underpin Oman's strategic vision, which lays out a road map for attracting entrepreneurs, innovators, and investors. This shift toward a sustainable future aspires not only to achieve significant investment returns but also to make the world a greener and more sustainable place.
The EV business is one of the fastest expanding sectors of the world and the most environmentally friendly alternative to traditional modes of transportation. The worldwide automobile industry is transitioning to electric vehicles (EVs) for more sustainable mobility.
The Middle East, which has traditionally relied on oil, is rapidly adopting electric vehicles due to government initiatives, infrastructure investments, and increased environmental concerns due to climatic change. This transformation is critical to the Gulf region's long-term energy and economic diversification.
The Sultanate of Oman is pushing for cleaner and renewable energy, with a focus on electric vehicles. The country predominantly depends on natural gas, which makes up 71% of its energy consumption, but oil remains critical for powering vehicles. The transportation sector in Oman consumes a notable share of the country's energy, largely due to its reliance on oil products.
In 2021, transportation accounted for a significant portion of oil's approximately 28% total energy consumption. Oman is aggressively pursuing its goals to cut carbon emissions from the transportation sector, aiming for carbon neutrality by 2040 and with plans to phase out all cars that run on fossil fuels by 2050.
As such, transitioning to electric vehicles not only cuts emissions but also reduces economic vulnerability to oil price fluctuations. The government plans to expand the charging infrastructure with a target of 300 stations by 2025 across major cities like Muscat and Sohar. However, the public lacks access to a central database that provides data on the current deployment of electric vehicles. The Authority for Electricity Regulation is working on regulations to govern and enforce the use of electric vehicles in the Sultanate.
The promotion of electric cars is a key component of Oman’s energy transition policy. By 2030, 7,000 EVs are expected to be registered, accounting for 35% of new light vehicle registrations; by 2040, that number is expected to rise to 22,000 EVs, or 65% of new vehicles. Additionally, the Ministry of Transport, Communications, and Information Technology (MTCIT) is leading a phased carbon reduction program in Oman that aims to transition trucks and heavy machinery to hydrogen and electric technologies.
By 2029, Oman expects the EV market to be a size of $805.32 million.
Government incentives, such as tax rebates, subsidies, and laws requiring service stations to provide EV charging stations, support this expansion. While private sector cooperation is aggressively promoting the construction of easily accessible and effective charging infrastructure, the government has also implemented steps to address issues like range anxiety and the high initial cost of EVs.
In a noteworthy move to diversify the economy and lessen dependency on oil and gas exports, Mays, Oman's first indigenous EV manufacturer, is gearing up activities to introduce its debut model, the Alive 1, priced at $38,964. Complementing these efforts, Oman is developing its renewable energy projects to support the growing EV ecosystem and broader sustainability goals.
The country has started several projects, including wind farms in Dhofar, solar-diesel hybrid facilities, and small-scale solar panel installations under the Sahim program. It has also operationalized its largest utility-scale solar photovoltaic project, Ibri 2. Achieving the goals of 79% electric vehicles by 2035 and switching to a zero-emission transportation system by the middle of the century depends on the combination of renewable energy and EV uptake.
Despite all the positive aspects, the EV market confronts a number of hurdles and limits, such as a lack of charging infrastructure, high setting-up costs, poor confidence level in customers, and range anxiety.
Despite these hurdles, the Oman EV industry is expected to grow significantly in the next years as a result of ongoing government backing, increased partnerships, and a number of collaborations between the government and the private sector, including international companies.
Robust data and a dedication to sustainability underpin Oman's strategic vision, which lays out a road map for attracting entrepreneurs, innovators, and investors. This shift toward a sustainable future aspires not only to achieve significant investment returns but also to make the world a greener and more sustainable place.