The energy sector of the Sultanate of Oman has been identified as a promising sector for economic diversification during the 10th five-year development plan (2021-2025). It is also the first operational plan for Oman’s Vision 2040 in which renewable energy is one of the pivotal pillars to provide support for meeting the escalating energy requirements of the country.
Indeed, the development of various advanced technologies, mechanisms and government incentives encouraged many countries to pursue renewable energy policies. However, the growth of renewable energy utilisation is generally poor in the Middle East, particularly in the Sultanate of Oman. It may be due to subsidised electricity tariffs, lack of appropriate fiscal promotion strategies and poor support for private installation, besides a general distrust of renewable power.
As part of the Sultanate of Oman's strategy for renewable energy integration and enhancing economic diversification, the National Energy Strategy (2020-2030) aims to ensure energy security, sustainability, affordability and better utilisation of local energy resources. The country has realised that the utilisation of renewable energy sources can be viewed as a key element for national level energy suppliers, besides, a strategic opportunity to contribute to global initiatives against climate change, CO2 emissions and depletion of fossil fuel reserves.
Today, the Sultanate of Oman’s electricity demand is met mainly by fossil fuels, especially natural gas. According to current research, several factors such as the rise in fossil fuel cost, reduction in capital cost of renewable energy conversion systems and development of reliable technologies can play a role in reducing the cost gap between power from fossil fuels and renewable energy.
Oman's exceptional geographical location, which is accessible by land, air and sea, draws the attention of major energy investors and related sectors. Moreover, Oman has been found as one of the countries which have high solar irradiance. The desert areas are more solar-intensive than coastal regions. Due to humidity, dust and low rain, solar energy can only be produced by means of photo-voltaic systems (PV) for electricity production in northern and rural desert areas. PV systems are highly suitable for electricity generation in rural desert areas since solar energy would reduce diesel fuel consumption. However, Oman has limited potentials for electricity production from wave, tidal and geothermal resources. Regardless, renewable energy is a key element for sustainable development and job creation.
According to the present strategy, the country intends to obtain at least 2,660 MW of renewable power from 2021 to 2027. Of this total, solar PV and wind account for 79 per cent and 21 per cent respectively. The first of two new wind-based power projects are expected to be operational by 2024. Further, a considerably larger project of 200 MW is expected in Duqm by 2024. Last November, the Sultanate of Oman's first wind farm (Dhofar 1 Wind IPP), a 50 MW complex was launched in Harweel, Dhofar Governorate. The Barka WTE IPP, a Waste to Energy project with a maximum capacity of 160 MW and a projected completion date of 2025, is part of the renewables pipeline.
Oman Power and Water Procurement Company (OPWP) foresees the potential for a 600 MW Concentrated Solar Power (CSP) project with thermal storage in Duqm. Dhofar Governorate may also see more wind projects by 2025. All these constructive steps taken in the energy sector demonstrate the prospects of sustainable energy generation and utilisation in Oman.
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