Oman - Country Commercial Guide
Renewable Energy

This is a best prospect industry sector for this country.  Includes a market overview and trade data.

Last published date: 2022-09-14

Overview

Oman is looking to expand its electricity-generation capacities through renewable independent power projects (IPP), with plans to derive at least 30 percent of electricity from renewables by 2030. Although the government has reined in some of its ambitious renewables targets due to fiscal austerity measures implemented since 2020, many opportunities for U.S. firms exist in this sector.

Oman has led the Gulf Cooperation Council (GCC) countries in the development of independent water and power plants and IPPs since 1994 when it launched its first IPP. The state-owned Petroleum Development Oman (PDO), which aims to slash its emissions to 50 percent of 2019 levels by 2030, was an early pioneer in large-scale solar power projects in Oman.

Commercial operations of Oman’s largest utility-scale solar photovoltaic, independent power project, Ibri 2, started in January 2022. Oman Power and Water Procurement Company (OPWP) awarded the project to a consortium of Saudi and Kuwaiti firms, for which Beijing-based Asian Infrastructure Investment Bank (AIIB) loaned USD 60 million to the project. The project is AIIB’s first renewable energy financing project in Oman and the region.

Oman has embarked on several other projects in line with targets for the year 2030, including a wind farm in Dhofar; two solar IPPs in Manah; 11 solar-diesel hybrid facilities; and the ‘Sahim’ (‘Contribute’) initiative to install small-scale solar panels on residential and commercial buildings, among others. In April 2022, OPWP, the sole procurer of new power generation capacity, invited consultants to bid for the development of Oman’s first Waste-to-Energy project.

EDO manages the government’s stake in PDO’s other upstream investments and finances their projects. EDO’s mandate includes investments in renewable and alternative energy resources, according to local media reports. The restructuring of the Ministry of Oil and Gas as MEM has raised the visibility of renewable energy resources. Oman’s integrated oil and gas company OQ is also seeking international partners to replace 40 percent of its 3 GW power consumption with renewable energy projects.

Oman is planning to build a hydrogen-centric economy by 2040, with an annual production of green and blue hydrogen of approximately 30GW by 2040. The government has announced several gigawatt-scale green hydrogen projects, including a 14GW facility powered by 25GW of wind and solar energy. Oman plans over $45 billion worth of green hydrogen and green ammonia projects, according to research agency MEED. Oman established a Directorate General for Clean Energy and Hydrogen at the Ministry of Energy and Minerals, and an EDO subsidiary called Hydrogen Development Oman to manage hydrogen projects.

Leading Sub-Sectors

Solar IPPs, wind, solar power, and green hydrogen projects are leading sub-sectors in Oman’s renewable energy sector, and they have created opportunities for U.S. businesses in the sale of equipment and services, technology transfer, research and development, and privatization of government assets.

Opportunities

Below are the names of active renewable projects in Oman that present potential business opportunities for experienced renewable energy firms as well as local SMEs, according to MEED Projects, as of May 2022.

Table: active renewable projects in Oman

Project

Sub

Sector

Project

Value ($m)

Project Status

Completion Year

OPWP - Waste to Energy Plant in Barka

Waste to

Energy

1,000

Study

2025

Tanweer - 78MW IPP in Musandam

Oil/Gas

60

Study

2025

Tanweer - Dibba Power Station

Oil/Gas

60

Study

2025

Madayn/Mubadrah - 100MW Solar Power Plant

at Sohar Industrial City

Solar

100

Study

2025

OPWP - Dhofar Wind Farm IPP

Wind

100

Main Contract

Pre-Qualification (PQ)

2026

OPWP - 200 MW Duqm Wind IPP

Wind

200

Main Contract PQ

2025

SSDC - Biomethane and Solar PV

Power Generation Plant

Solar

130

Bid Evaluation

2023

OPWP - Manah Solar 2 IPP

Solar

500

Main Contract Bid

2024

OPWP - Manah Solar 1 IPP

Solar

500

Main Contract Bid

2025

Al Namaa - Poultry Meat Project:

Captive Solar Power Plant 15MW

Solar

45

Bid Evaluation

2025

OPWP - 150MW Dhofar II Wind Power Plant (IPP)

Wind

150

Study

2026

OPWP - 200MW Dhofar III Wind Power Plant (IPP)

Wind

200

Study

2025

PDO - Qarn Alam Power Plant Phase V

Oil/Gas

20

Execution

2022

Petroleum Development Oman - 100 MW

Duqm solar photovoltaic IPP

Solar

100

Study

2025

Marafiq/Tanweer - Gas-Diesel IPP 80MW

Oil/Gas

70

Execution

2022

Oman LNG - 120 MW Gas Fired Power Plant at Sur

Oil/Gas

120

Execution

2022

Tanweer - 146MW Hybrid Solar-Diesel IPP

Solar

180

Bid Evaluation

2026

PDO - Qarn Alam Co-Generation Project

Oil/Gas

115

Execution

2022

Oman Environmental Services Holding Co -

Waste To Energy To Water Plant

Waste to

Energy

750

FEED

2025

 

Resources

Petroleum Development of Oman

OQ

Nama

Oman Power and Water Procurement Company

Authority for Public Services Regulation