Oman Makes Massive Push for Renewable Energy

Oman has announced plans for ten new renewable energy projects between 2027 and 2029 targeting a combined capacity of around 2,300MW. These are part of the sultanate’s broader efforts to diversify its energy mix and reduce reliance on fossil fuels. Two additional projects, with total capacity of 1,220MW, are also planned by 2029.

The projects align with Oman Vision 2040, which prioritises clean energy and environmental sustainability. The announcement was made during a media briefing organised by Authority for Public Services Regulation (APSR) under the patronage of H E Salim bin Nasser al Aufi, Minister of Energy and Minerals.

Oman currently operates the Dhofar 1 Wind Energy Project of 50MW capacity and Ibri 2 Solar Project generating 500MW. Two major solar projects – Manah 1 and Manah 2 – were launched in 2025, collectively adding 1,000MW to the grid.

By 2027, Oman plans wind and solar energy projects with combined capacity of 1400MW-1450MW. This will expand by 850MW by 2028, going up by a further 1200MW by 2029. The strategy will culminate in 2030 with a solar energy project capable of generating 3,000MW.

Dr Mansoor Talib al Hinai, Chairman of APSR, outlined several initiatives to promote sustainability and energy efficiency. Among these is the Wadi Dayqah Dam optimisation project, which will focus on water purification and energy storage.

A geothermal energy feasibility study is also underway, along with a waste-to-biofuel conversion initiative to supply biofuel for cement production. Additionally, community solar stations are being developed that will utilise health and educational facilities for solar energy generation. A regulatory framework is being drafted to guide energy transmission and foster competition in the electricity market.

Hinai noted the sector’s contribution to the economy, with its share of GDP rising from 2.2% in 2020 to 2.5% in 2024. Investments in regulated sectors have re-ached approximately RO2.837 billion (US$7.37 billion), with RO773 million (US$2 billion) allocated for electricity distribution, RO652 million (US$1.7 billion) for Oman Electricity Transmission Co, RO192 million (US$498.7 million) for natural gas transmission, RO860 million (US$2.23 billion) for water and sanitation, and RO450 million (US$1.17 billion) for electricity generation.