From Oil to Renewables: Oman's Path to Energy Transition

The Sultanate of Oman proceeds with its energy diversification strategy by the declaration of the pre-qualified candidates for the Ibri III solar project. The project needs an investment of 155 million Omani rials and has a capacity of 500 Megawatt. The project is a part of Oman's policy to address the increasing need for electricity from renewable sources. At the beginning of the year, Nama Power and Water Procurement firm took the initiative to launch the call for qualifications, luring heaps of local and international developers.

Khamis bin Saif Al Jabri, Chairman, Oman Vision 2040 says "To lessen the country’s dependence on the oil industry, efforts have been focused on five sectors – including agriculture and fisheries, logistics and transport, energy and mining, and tourism – as viable alternative revenue sources"

Though Oman is well-known for its oil reserves, it is actively progressing on its journey to diversify its energy portfolio. As pressing environmental challenges intensify and the need for green energy sources increases, Oman is in the transitioning process with projects and initiatives to achieve its vision.

Government Policies and Support

The government of Oman has already taken the initiative to set its aim of accomplishing net zero emissions by 2050, which was implemented earlier. The higher authorities have a stringent goal: to lower emissions in Oman’s crucial sectors, which is a broader decarbonization agenda and progress in the right direction. Creating a route to net zero can be a remarkable opportunity for the nation to bring economic value, enhance industrial competitiveness and lure funding opportunities to diversify and bolster the nation’s overall economy. Moreover, the government is in the process of intensifying clean energy production, where green energy initiatives can play a pivotal role across industries and ultimately benefit the nation.

For instance, the Sultanate of Oman has developed an Energy Transition Policy project under the guidance of the Ministry of Energy and Minerals (MEM) in partnership with diverse public entities. The project will detail the National Energy Transition Policy outlook and adoption plan.

Salim bin Nasser bin Said Al Aufi, Minister of Energy and Minerals says "To keep up with global initiatives to reduce carbon emissions, the Ministry of Energy and Minerals collaborated with its partners in OQ and Hydrogen Oman (Hydrom) to take preliminary steps to expedite the procedures for regulating the hydrogen industry"

Solar Power Projects

The Sultanate of Oman is commonly recognized as an oil and gas developer considering energy aspects, but it is also ambitious in the solar and wind energy sector as they have identified the requirement to broaden its economy and minimize its carbon footprint. Presently, they are in the process of adopting innovation and expecting sustainability as their new engine of growth. "Oman Vision 2040" was introduced earlier by Oman as the national reference for social and economic planning for 2021-2040, including a national energy strategy establishing the path of a sustainable energy mix with a rising share commitment to renewable energy.

Ibri II, for example, is a solar project that has a capacity of 500MW and commenced activities in August 2021. It is Oman's initial large-scale solar PV plant, supplies power to more than 33,000 houses and offsets around 340,000 tonnes of CO2 emissions in a year.

Dr. Ali bin Masoud Al Sunaidy Chairman of the Public Authority for Special Economic Zones and Free Zones, Oman says "The Public Authority for Special Economic Zones and Free Zones is working in coordination with the Ministry of Energy and Minerals and the Hydrom (Hydrogen Oman LLC) to attract a number of green hydrogen projects through wind and solar energy production”

Wind Energy Initiatives

The nation has a goal to generate 30% of electricity by 2030 with the utilization of renewable sources. They can accomplish these objectives by the implementation of wind energy as it is pure and eco-friendly and also lower the dependency on fossil fuels. More importantly, to move ahead with the strategy of leveraging renewable energy sources for its electricity needs, the nation, represented by Oman Power and Water Procurement Company (OPWP) has come up with proposals with an aim to develop three wind based power projects at crucial locations in the country. 

For instance, Oman has various projects down the line targeting for 2030 which comprises wind farm in Dhofar, a solar IPP in Manah, 11 solar-diesel hybrid facilities and Sahim to set small-scale solar panels on commercial buildings.

Dr. Abdullah Al Amr, Chairman of Environment authority, says "Green hydrogen projects are undoubtedly one of the Sultanate of Oman›s strategic pillars for achieving zero-carbon energy production, particularly in light of the availability of the three key components for such projects› success: space, solar energy, and wind energy, in addition to their strategic location and the availability of the necessary logistical basic construction"

All in all, the nation needs to continue its proactive approach to the transformative endeavor that provides significant promise for the future. They need to leverage renewable energy resources, put appropriate projects into practice, and build a regulatory culture to accomplish a sustainable and different energy sector. As a part of the transitioning process, considerable challenges might occur, but the results would be rewarding, contributing to improved energy security, a stable economy, and achieving Oman's Vision 2040. Oman's journey towards energy transition can serve as a model for nations relying on oil and may switch to green energy goals.