Oman Energy Market: Vision 2040, Renewables and the Energy Transition

The transition at a glance

Oman has historically relied on natural gas for power generation. Under Oman Vision 2040 and the national net-zero 2050 commitment, the country is diversifying its power mix with utility-scale solar and wind, exploring battery storage and positioning itself as a future green hydrogen exporter.

Key institutions

• Nama Power and Water Procurement Company (Nama PWP): procures new generation capacity through competitive IPP tenders
• Oman Electricity Transmission Company (OETC): owns and operates the transmission network
• Authority for Public Services Regulation (APSR): regulates the electricity sector
• Hydrogen Oman (Hydrom): manages the green hydrogen land-allocation programme
• Environment Authority: environmental permitting and approvals

Renewable IPPs and procurement

Most utility-scale renewable capacity is procured through competitive tenders for independent power projects (IPPs) with long-term power purchase agreements. Solar PV plants such as Ibri II and wind projects in Dhofar have established a track record that supports further investment.

Grid integration

As renewable penetration grows, grid reliability, stability and flexibility become more important. Grid studies, storage and interconnection planning are central to integrating new capacity into the Main Interconnected System and other networks.

In-Country Value (ICV)

In-Country Value requirements encourage local employment, local suppliers and Omani capability building. Developers and contractors must plan ICV commitments from the tender stage onwards, and working with 100% Omani firms such as VESS can support these objectives.

Opportunities

Opportunities span utility-scale solar and wind, hybrid and storage systems, grid infrastructure, industrial decarbonisation and Power-to-X. Each requires rigorous feasibility, bankability and delivery support to turn potential into operating assets.

Frequently asked questions