Maryam al Nofli
Oman is one of the solar belt countries and possesses high solar radiation intensity. The Sultanate is characterized by its proximity to the Saudi Arabia desert, bordered by the north and west, and the Arabian Sea and the Indian Ocean to the south. High atmospheric temperature prevails throughout a major part of a year. It has a long coastline of nearly 3165 km from the northern Hormuz Strait to the Republic of Yemen borders, covering three separate broad seas: Sea of Oman, Arabian Sea, and the Arabian Gulf. Oman's climate varies across the country and can be split into three climatic regions. A subtropical climate prevails within the coastal region, dry climate dominates in the interior part, and more benign weather and tropical climate in southern part, particularly in Dhofar Governorate which is due to the influence of monsoon rains during June to September. The peak temperature of the country normally reaches 45°C during the summer, but the mean summer temperature is around 33 ̊C due to the high humidity. Winter temperatures are mild, ranging between 15 ̊ C and 23 ̊C.
Oman has substantial wind and solar energy potential and a strong commitment to clean energy investments. According to the recent report of Intergovernmental Panel on Climate Change (IPCC), by 2050, the world's supply and demand of fossil fuels should be drastically reduced by 95% for coal, 60% for oil, and 45% for natural gas from the current level. By an executive order, Oman joined the International Solar Alliance Framework Agreement as part of its strategy to utilize renewable energy sources, notably solar energy.
The Government of Oman has taken several actions to improve the clean energy generation. The most significant step toward this direction is the establishment of a ministerial committee and technical teams to coordinate the efforts taken to develop renewable energy and hydrogen sectors. Moreover, a program that emerges from specialized pathways with a governance system will be launched to ensure sound planning and implementation in accordance with the directives of this context.
Oman is preparing to begin several renewable energy projects to help satisfy the rising demand for electricity during the following six years. The 7-year statement was released by the Oman Power and Water Procurement Company (OPWP), which includes projections for the years 2021–2027. The company also disclosed the procurement of at least three wind-based projects during this period, besides launching the fourth solar PV project. By 2027, it also intends to purchase 2,200 megawatt capacity independent renewable energy-based projects for main grid.
Oman, which ranks third in the Middle East and North Africa, in terms of renewable energy, and 15th in terms of rising economies, continues to push for the use of renewable energy sources. Oman is in a strong position to adopt an ambitious strategy for energy diversification and renewable energy, according to Bloomberg's 2021 Clement Scoop Assessment, which concentrates on investments in global energy source diversification as well as evaluating countries' abilities to attract capital for low-carbon technologies while building a greener economy.
According to Oman News Agency, Oman gained in the evaluation index, which includes 136 countries around the world, including 29 developed and 106 emerging markets, by furthering its trend of diversifying energy sources through the expansion of renewable energy projects. Within Oman Vision 2040, Oman has devised a policy regarding transition to alternative energy, which it is putting into practice with the help of the Authority Public Services Regulation. The goal is to boost its use rate to 39 percent by 2040.
In order to support plans for economic diversification and advance sustainable energy technologies, this step aims to facilitate the most effective exploitation of energy sources and to take care of the development of renewable energy projects. With the intention of liberalizing the electricity market, luring more investment, and building the Ibri solar project, its largest renewable energy project, with a capacity of 500 MW. Further, Oman opened the first immediate power market in the Middle East in January as part of this plan. Wind power has also been introduced as a renewable energy source in Oman, with the Dhofar wind power plant in Shaleem and Halaniyat Islands having the largest production capacity in the region at 50 MW. Furthermore, Oman has recently announced plans to build two new utility-scale solar power projects in the wilayat of Manah, Al Dakhiliyah Governorate with a combined capacity of 1,000MW.
Oman's power infrastructure and hydrocarbon reserves pose a challenge to economic growth due to its total reliance on fossil fuels, increasing population, and rapid industrialization in cities such as Duqm, Sohar, and Salalah. Oman's strategic importance and geographical location make it feasible to harness renewable energy technologies on both small and large scales for further economic development. It not only helps to reduce reliance on fossil fuels, but helps to create a cleaner and sustainable environment. Renewable energy research & development and high-technology services could generate new business and employment in Oman, ushering in a paradigm shift in the diversification of the Omani economy.
Oman has one of the greatest levels of solar energy density in the world. There is great potential for expanding solar energy resources throughout the country. The interesting fact is the available solar energy in Oman has the ability to supply enough electricity to cover the domestic electrical needs of the country and export some electricity. Moreover, significant wind energy potential along Oman's southern coast and mountains north of Salalah is identified. Wind speeds in these places are equivalent to those observed at inland European sites having substantial number of wind turbines in operation. Wind speeds are optimum in the summer months, which correspond to peak periods of electricity demand in Oman.
Until recently, renewable energy sources were not considered priority for development in Oman, partly also because fuel market fluctuations made it economically challenging to do so.
The reason is attributed to several factors, the most important of which are: the cost of generating electricity from conventional power plants is cheaper than that of generation from renewable energy sources. Several factors can be addressed to reduce the gap between cost of power from fossil fuels and renewable energy:
• Attempting to raise the prices of fossil fuels.
• A significant reduction in the capital cost of renewable energy conversion system due to the advances in technical expertise and wider use.
• Modifying the cost of petroleum production to incorporate the environmental harm posed by emissions.
Renewable energy project developers encounter a number of challenges. These are related to a variety of issues, some of which are related to the underlying technology and associated cost structures, while others are related to the nature of the power market in which their outputs are sold. Cost competitiveness and cost structure, intermittency, scale, and legal framework are some of the barriers. A few companies in Oman that are involved in renewable energy (solar)-related activities have also been identified. They have three characteristics: business type, product type, and service type.
Oman, represented by the Ministry of Energy and Minerals, is attempting to develop and implement studies, plans, and policies to optimize energy utilization and interest in the development of renewable energy projects in various Oman provinces. The goal for renewable energy contribution in power generation is 11% and 30% by 2023 and 2030 respectively. The Ministry of Energy and Minerals, in collaboration with the Authority for Public Services Regulation, supervises the implementation of public policy in the electricity and renewable energy sectors. It is done through the adoption of programs that enable operators to achieve the approved goals of diversifying energy sources and increasing the share of renewable energy in line with sustainable development plans to exploit the available sources in Oman. (The author is Lecturer at the University of Technology and Applied Sciences - Shinas. She can be contacted at alnoflimaryam@gmail.com)
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