Oman’s Renewable Energy Projects
Oman’s National Energy Strategy aims to derive 30% of electricity from renewable sources by 2030.
Oman’s Renewable Energy Projects Shine Bright in Push for Renewables in Electricity
- Oman wants to expand its electricity generation capacities through renewable independent power projects (IPPs).
- One of the objectives of Oman Vision 2040 and the National Energy Strategy is to derive at least 30% of electricity from renewables by 2030.
- The state-owned Petroleum Development of Oman (PDO) is an early pioneer in large-scale solar power projects in Oman. In 2015, Petroleum Development Oman (PDO) launched the 7 MW pilot for the U.S. based GlassPoint Miraah concentrated solar power project.
- Expected IPPs are expected to create opportunities for U.S. businesses in the sale of equipment and services, technology transfer, R&D and privatization of government assets.
- Oman’s first waste-to-energy project has received government approval and the RFQ is due to be released by the second quarter of 2020. Table 1 lists renewable projects in Oman, compiled by MEED Projects, a Middle East’s project tracking database.
- Oman’s ability to complete these projects, though, are expected to be delayed, though, because of budget constraint
Oman has embarked on many projects in line with its goal to generate 30% of its electricity from renewables. These projects include a wind farm in Dhofar; two solar IPPs in Manah; 11 solar-diesel hybrid facilities; and the ‘Sahim’ initiative to install small-scale solar panels on residential and commercial buildings, among others.
In 2018, Oman restructured its utilities sector, making the Ministry of Oil & Gas (MOG) the main policymaker for all energy projects, and the MOG has also led on the implementation of several renewable energy projects.
In February 2019, a consortium led by Japan’s Marubeni signed a power purchase agreement (PPA) with PDO Oman to develop a 100MW PV solar project at Amin. In March 2019, a consortium of Saudi and Kuwaiti firms secured financing for the 500 megawatt (MW) solar photovoltaic (PV) independent power project (IPP) at Ibri in Oman. The Oman Power and Water Procurement Company (OPWP) selected the Gulf firms as preferred bidders in March 2019. The Beijing-based Asian Infrastructure Investment Bank (AIIB) loaned $60 million of the $275 million total amount, heralding AIIB’s the first renewable energy financing in Oman and the region. The financial deal was imperative to the bids success.
For more information about opportunities in Oman’s renewable energy sector for U.S. companies, please contact firstname.lastname@example.org