Muscat: As various sectors of the national economy align themselves with the strategic objectives of the Sultanate of Oman’s 2040 Vision, a stronger commitment to a green economy based on sustainable practices is now becoming evident.
Sustainable development, defined as “the development that meets the needs of the present without compromising the ability of future generations to meet their own needs”, has a significant role in the region. In particular, green Small and Medium Enterprises (SMEs) have shown to achieve positive financial and environmental impacts on the country’s overall development.
For the most part, the Sultanate of Oman’s energy transition is presently driven primarily by major players. The country’s first commercial solar plant, developed by Shams Ad-Dhahirah Generating Company, is set to be operational before the end of this year. The 500 MW solar utility, known as the Ibri II Independent Power Project (IPP), is reputedly the “largest commercial PV plant in the Middle East” with bifacial solar technology suited to desert climate conditions.
In addition, the planned alternative production of green hydrogen using renewable energy is creating momentum towards a low carbon future. Organizations such as OQ have outlined plans for a 25 GW project to produce 1.8 m tonnes/year of Green Hydrogen and 10 m tonnes/year of Green Ammonia by 2026.
Despite renewable energy projects being incentivised by large organisations, green start-ups that focus on addressing environmental issues are a beneficial approach compared to conventional business practices. Specifically, “Green Entrepreneurs” are differentiated from traditional business owners where the innovation of a product or idea is solely directed towards a sustainable economy.
Initiatives are now available that enable SMEs to play a key role in the renewable energy shift. For example, the Authority for Public Services Regulation (APSR) has launched the Yaseer and Sahim residential programmes that effectively open the way for SMEs to capitalise on opportunities to offer small-scale solar solutions to organisations, businesses and residential building. End-users benefit by being able to generate clean energy and export surplus power back to the grid.
Additionally, renewable energy generation on a residential scale is fostered through financial schemes such as Green Finance offered by Bank Muscat to support the uptake of rooftop solar. The scheme provides loans ranging from RO 1,000 to RO 25,000 at competitive interest rates subject to a maximum debt burden ratio of 50 per cent, allowing households to shift to eco-friendly and cost-effective means of electricity generation.
Oman is also seeing a new wave of ‘green entrepreneurship’ being spawned by the transition to a sustainable energy future, Talal Hassan, a pioneering Omani entrepreneur, established a start-up 44.01 that uses renewable energy to capture greenhouse gases that are then stored in rocks to eliminate its consequential effects on the atmosphere. The company focuses on decarbonisation through a natural mineralisation process making use of Oman’s geological formations to mitigate climate change effects.
Firas al Abduwani, CEO and founder of Hussam Technology Company (HTC), emphasises the vital contribution of SMEs, particularly when directed towards sustainable development. HTC, an ICT solutions provider, undertook the “Solar into Schools” project created by Shell to install and promote solar photovoltaics in public schools. Al Abduwani highlights the importance of SMEs as a fundamental factor in the country’s progress. Lamentably, however, SMEs currently registered companies in the electricity sector are minimal, and accounting for only 6 per cent of the total.
A notable initiative led by Yousef al Harthy from Amana Waqf Funds Management Company is the Green Mosque programme, which seeks to convert mosques into energy-efficient buildings. Solar photovoltaics with a generating capacity of 10 kW were installed for the first time at the Hassan bin Thabit Mosque, reducing power consumption by 40 per cent. The first phase of the unique initiative is underway, aiming to continue creating social and environmental returns in the community.
Green SMEs are a key contributor in solving the region’s environmental and social issues. Therefore, promoting green entrepreneurship is an important factor for the region’s economic and sustainable growth to align with the country’s 2040 Vision. Business incubators can further support the Omani entrepreneurial movement to be directed towards green start-ups by developing talent and innovation, as well as fostering a suitable environment for green entrepreneurs.
[The writer is a Muscat-based energy professional specialising in energy systems. Email: safaadnan96@gmail.com]
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