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Zawya
24-03-2025
- Business
- Zawya
Oman's circular solar economy: Opportunities & challenges in PV sustainability
Oman is steadily advancing toward its Vision 2040 goals, with renewable energy playing a crucial role in its economic diversification strategy. With an abundance of sunlight, the country has invested heavily in solar energy projects, including the Ibri II and Manah 1&2 solar plants. However, as Oman accelerates its solar adoption, it must also prepare for the challenge of managing solar photovoltaic (PV) waste. Without a structured approach to recycling and circularity, the country risks facing a growing environmental burden and lost economic opportunities. A recent report titled 'Circular Solar: Opportunities and Challenges in Solar PV' by the University of Cambridge Institute for Sustainability Leadership (CISL), IfM Engage, and Group Innovation GmbH highlights the importance of integrating circular economy principles into the solar sector. This essay examines how Oman can benefit from solar circularity, leveraging international best practices to strengthen its renewable energy sustainability, create economic opportunities, and establish itself as a leader in the Gulf's green transition. CIRCULARITY IN SOLAR ENERGY Solar PV technology has experienced rapid global growth, driven by declining costs and technological advancements. The International Renewable Energy Agency (IRENA) predicts that by 2050, global solar installations will exceed 4.6 terawatts (TW), but this will also result in over 200 million metric tonnes of solar panel waste. Without a proper recycling framework, most of this waste will end up in landfills, leading to resource loss and environmental hazards. Oman's increasing reliance on solar power makes it essential to address this challenge early. By incorporating circular economy strategies, the country can reduce environmental damage, lower costs for new solar projects, and extend the lifespan of solar investments. The question remains: How can Oman effectively integrate solar circularity into its renewable energy policy framework? OMAN IN THE CIRCULAR SOLAR ECONOMY One of the most effective approaches for Oman is adopting the '4R' framework outlined in the report: Reuse, Refurbishment, Remanufacturing, and Recycling. Reuse involves extending the life of solar panels through repairs and repurposing, while refurbishment upgrades panels for secondary applications. Remanufacturing disassembles panels to rebuild new ones using recovered components, and recycling extracts valuable materials like silver, silicon, aluminum, and copper for reuse in new solar panels. Oman can also learn from the European Union's (EU) circular solar policies. The Waste from Electrical and Electronic Equipment (WEEE) Directive mandates that 85% of solar panels must be collected and recycled by manufacturers. By implementing similar regulations, Oman can prevent improper disposal, promote responsible recycling, and attract investments in solar waste management. The circular solar economy also presents a strong economic opportunity. According to SolarPower Europe, the EU solar recycling sector could create over 16,000 jobs by 2028. In Oman, solar panel refurbishment and recycling facilities could lead to new employment opportunities in green industries, fostering public-private partnerships and attracting foreign investments in sustainable technologies. Moreover, Oman has the potential to position itself as a regional hub for solar PV sustainability. As Saudi Arabia, the UAE, and other GCC nations expand their solar industries, Oman can lead by establishing solar PV recycling and refurbishment facilities, serving both domestic and regional markets. CHALLENGES Despite the benefits, Oman faces several challenges in developing a circular solar economy. One of the biggest obstacles is weak market formation for solar PV recycling. Due to the availability of cheap new solar panels, there is low demand for second-life panels. Additionally, many businesses and consumers are unaware of solar circularity, and there is a lack of certification for refurbished panels, making their resale difficult. Another major challenge is the absence of large-scale solar recycling infrastructure. Oman currently does not have dedicated facilities for solar panel recycling, which means that decommissioned panels either end up in landfills or are exported without proper oversight. To address this, the government must incentivize private sector investment in recycling facilities and establish a national network for collecting and processing solar waste. Policy gaps also hinder progress. While Oman has made strides in solar energy expansion, there is no dedicated regulation for solar panel recycling or circular economy mandates. Implementing policies such as extended producer responsibility (EPR)—which makes manufacturers responsible for collecting and recycling old panels—could ensure sustainable end-of-life management. Finally, technological and financial barriers pose additional difficulties. High-tech solar recycling methods, such as chemical and thermal processes, require substantial investment. To overcome this, Oman can partner with international solar firms, leverage regional cooperation within the GCC, and establish joint ventures with recycling technology leaders. RECOMMENDATIONS To effectively integrate circularity in its solar energy sector, Oman should take several key steps. First, the government must develop a National Solar Circularity Policy that includes mandates for solar panel recycling, producer responsibility regulations, and incentives for second-life PV solutions. A well-structured policy would create clear guidelines for manufacturers, businesses, and consumers, ensuring that solar waste is managed sustainably. Second, Oman should incentivize private sector investment by offering tax benefits and financial support to companies engaged in solar panel recycling and refurbishment. Establishing public-private partnerships (PPPs) can also accelerate the development of solar circularity projects. Third, investment in solar recycling R&D and infrastructure is crucial. Oman should set up pilot recycling plants in free zones or industrial areas, where businesses can test and develop solar PV recycling solutions. Universities and research institutions can also play a role by conducting studies on cost-effective solar waste management techniques. Fourth, Oman must promote public awareness and introduce a certification system for second-life PV panels. Consumer education campaigns can encourage businesses and individuals to opt for refurbished solar panels, reducing unnecessary waste. A government-backed certification systemwould also ensure that reconditioned panels meet quality standards, making them a viable alternative to new imports. Finally, Oman should strengthen regional and global collaborations. Partnering with the EU and China, both of which have advanced solar recycling programmes, could help transfer knowledge and best practices. Additionally, advocating for a GCC-wide policy on solar PV circularity would enable cross-border cooperation in solar waste management. CONCLUSION Oman's renewable energy transition is a step in the right direction, but it must also address the end-of-life challenges associated with solar PV technology. The circular solar economy offers a solution that is not only environmentally necessary but also economically beneficial. By adopting EU-style regulations, investing in solar recycling infrastructure, and fostering public-private partnerships, Oman can position itself as a leader in solar sustainability in the Gulf. The transition to a circular solar economy will require policy reforms, investment in technology, and regional collaboration, but if implemented successfully, Oman will reap long-term benefits in sustainability, economic diversification, and job creation. The time to act is now—before the solar waste crisis becomes a reality. 2022 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (
Observer
22-03-2025
- Business
- Observer
Oman's circular solar economy: Opportunities & challenges in PV sustainability
Oman is steadily advancing toward its Vision 2040 goals, with renewable energy playing a crucial role in its economic diversification strategy. With an abundance of sunlight, the country has invested heavily in solar energy projects, including the Ibri II and Manah 1&2 solar plants. However, as Oman accelerates its solar adoption, it must also prepare for the challenge of managing solar photovoltaic (PV) waste. Without a structured approach to recycling and circularity, the country risks facing a growing environmental burden and lost economic opportunities. A recent report titled 'Circular Solar: Opportunities and Challenges in Solar PV' by the University of Cambridge Institute for Sustainability Leadership (CISL), IfM Engage, and Group Innovation GmbH highlights the importance of integrating circular economy principles into the solar sector. This essay examines how Oman can benefit from solar circularity, leveraging international best practices to strengthen its renewable energy sustainability, create economic opportunities, and establish itself as a leader in the Gulf's green transition. CIRCULARITY IN SOLAR ENERGY Solar PV technology has experienced rapid global growth, driven by declining costs and technological advancements. The International Renewable Energy Agency (IRENA) predicts that by 2050, global solar installations will exceed 4.6 terawatts (TW), but this will also result in over 200 million metric tonnes of solar panel waste. Without a proper recycling framework, most of this waste will end up in landfills, leading to resource loss and environmental hazards. Oman's increasing reliance on solar power makes it essential to address this challenge early. By incorporating circular economy strategies, the country can reduce environmental damage, lower costs for new solar projects, and extend the lifespan of solar investments. The question remains: How can Oman effectively integrate solar circularity into its renewable energy policy framework? OMAN IN THE CIRCULAR SOLAR ECONOMY One of the most effective approaches for Oman is adopting the '4R' framework outlined in the report: Reuse, Refurbishment, Remanufacturing, and Recycling. Reuse involves extending the life of solar panels through repairs and repurposing, while refurbishment upgrades panels for secondary applications. Remanufacturing disassembles panels to rebuild new ones using recovered components, and recycling extracts valuable materials like silver, silicon, aluminum, and copper for reuse in new solar panels. Oman can also learn from the European Union's (EU) circular solar policies. The Waste from Electrical and Electronic Equipment (WEEE) Directive mandates that 85% of solar panels must be collected and recycled by manufacturers. By implementing similar regulations, Oman can prevent improper disposal, promote responsible recycling, and attract investments in solar waste management. The circular solar economy also presents a strong economic opportunity. According to SolarPower Europe, the EU solar recycling sector could create over 16,000 jobs by 2028. In Oman, solar panel refurbishment and recycling facilities could lead to new employment opportunities in green industries, fostering public-private partnerships and attracting foreign investments in sustainable technologies. Moreover, Oman has the potential to position itself as a regional hub for solar PV sustainability. As Saudi Arabia, the UAE, and other GCC nations expand their solar industries, Oman can lead by establishing solar PV recycling and refurbishment facilities, serving both domestic and regional markets. CHALLENGES Despite the benefits, Oman faces several challenges in developing a circular solar economy. One of the biggest obstacles is weak market formation for solar PV recycling. Due to the availability of cheap new solar panels, there is low demand for second-life panels. Additionally, many businesses and consumers are unaware of solar circularity, and there is a lack of certification for refurbished panels, making their resale difficult. Another major challenge is the absence of large-scale solar recycling infrastructure. Oman currently does not have dedicated facilities for solar panel recycling, which means that decommissioned panels either end up in landfills or are exported without proper oversight. To address this, the government must incentivize private sector investment in recycling facilities and establish a national network for collecting and processing solar waste. Policy gaps also hinder progress. While Oman has made strides in solar energy expansion, there is no dedicated regulation for solar panel recycling or circular economy mandates. Implementing policies such as extended producer responsibility (EPR)—which makes manufacturers responsible for collecting and recycling old panels—could ensure sustainable end-of-life management. Finally, technological and financial barriers pose additional difficulties. High-tech solar recycling methods, such as chemical and thermal processes, require substantial investment. To overcome this, Oman can partner with international solar firms, leverage regional cooperation within the GCC, and establish joint ventures with recycling technology leaders. RECOMMENDATIONS To effectively integrate circularity in its solar energy sector, Oman should take several key steps. First, the government must develop a National Solar Circularity Policy that includes mandates for solar panel recycling, producer responsibility regulations, and incentives for second-life PV solutions. A well-structured policy would create clear guidelines for manufacturers, businesses, and consumers, ensuring that solar waste is managed sustainably. Second, Oman should incentivize private sector investment by offering tax benefits and financial support to companies engaged in solar panel recycling and refurbishment. Establishing public-private partnerships (PPPs) can also accelerate the development of solar circularity projects. Third, investment in solar recycling R&D and infrastructure is crucial. Oman should set up pilot recycling plants in free zones or industrial areas, where businesses can test and develop solar PV recycling solutions. Universities and research institutions can also play a role by conducting studies on cost-effective solar waste management techniques. Fourth, Oman must promote public awareness and introduce a certification system for second-life PV panels. Consumer education campaigns can encourage businesses and individuals to opt for refurbished solar panels, reducing unnecessary waste. A government-backed certification systemwould also ensure that reconditioned panels meet quality standards, making them a viable alternative to new imports. Finally, Oman should strengthen regional and global collaborations. Partnering with the EU and China, both of which have advanced solar recycling programmes, could help transfer knowledge and best practices. Additionally, advocating for a GCC-wide policy on solar PV circularity would enable cross-border cooperation in solar waste management. CONCLUSION Oman's renewable energy transition is a step in the right direction, but it must also address the end-of-life challenges associated with solar PV technology. The circular solar economy offers a solution that is not only environmentally necessary but also economically beneficial. By adopting EU-style regulations, investing in solar recycling infrastructure, and fostering public-private partnerships, Oman can position itself as a leader in solar sustainability in the Gulf. The transition to a circular solar economy will require policy reforms, investment in technology, and regional collaboration, but if implemented successfully, Oman will reap long-term benefits in sustainability, economic diversification, and job creation. The time to act is now—before the solar waste crisis becomes a reality. The writer is the head of Oman Observer's Business section
Observer
15-03-2025
- Business
- Observer
The role of ESG in support of the Omani economy
Environment, social, and Corporate Governance (ESG) has become an important variable for measuring sustainability and social impact of businesses and investments. With the growing economy and Oman Vision 2040 strategy, Oman has been adopting the ESG framework in line with international sustainability objectives. This article discusses how ESG aids the Omani economy while noting essential advantages, challenges, and undertakings by the government and private sector. COMPONENTS OF ESG The three key constituents of ESG are: - Environmental: Covers sustainability, resource utilization, and climate change issues. - Social: Relates to employment practices, philanthropy, and social duties. - Governance: Pertains to corporate conduct, accountability, and business disclosure practices. Oman stands to improve economic diversification, attract responsible investment, and enhance economic growth by incorporating ESG in national policies and business strategies. EFFECTS OF ENVIRONMENTAL ASPECTS ON THE OMANI ECONOMY a. Sustainability Efforts and Renewable Energy Sources: Oman is shifting its energy strategy to include renewable sources of energy such as solar and wind. Vision 2040 targets a lower fossil fuel dependency paired with greater renewable energy involvement. The Ibri II and Manah I & II solar plants are examples of these new initiatives. b. Efforts to Combat Climate Change: Oman has set up policies meant to lower carbon emissions and conserve biodiversity. Oman is a signatory to international environmental treaties, and has laws aimed at controlling industrial waste as well as water usage. c. Sustainable Tourism: The promotion of ecotourism spurs economic growth while ensuring the protection of nature. Promotion of sustainable tourism, stimulated by projects like Ras Al Jinz Turtle Reserve and Al Hoota Cave, results in increased funds and jobs available for Omanis. SOCIAL FACTORS OF ESG IN OMAN a. Employment and Human Capital: The ESG framework leads to positive impacts on the labor market in terms of employment and training opportunities. Oman's Omanization policy guarantees nationals employment in the public sector. There is a drive for companies to build supportive training programs that meet ESG criteria and guidelines. b. Social Responsibility Initiatives within Firms (CSR): Omani businesses, covering telecom, banking, and oil companies, do actively take part in CSR programmes across education, healthcare and community development as a part of their business operations. c. Regulations on Health and Safety: Workers in Oman are protected by strict laws on health and safety. Those in gas and oil, manufacturing, construction, and other industries must follow basic international safety requirements aimed at preventing accidents in the workplace. CORPORATE GOVERNANCE WITH THE ECONOMIC DEVELOPMENT OF OMAN a. Openness and Responsibility: The public sector institutions in Oman such as the Financial Services Authority have integrated public policies the governance practices in the country in order to improve both transparency and investments by enforcing corporative governance measures. Publicly listed businesses are bound by some legally defined limits in their operations to ensure morality in business activities. b. Foreign Direct Investments (FDI): International investment is drawn to Oman because of its solid governance. Countries willing to invest Oman are able to do so due to the lack of strict policies in Oman where foreign investors are invited to partake in key industries that include tourism, manufacturing, and logistics c. Digital Transformation with Government: Business processes in Oman are very much manual and Oman is moving towards the adoption of digital government. Use of digital financial payments through blockchain technology and AI compliance monitoring reduces corruption and increases efficiency. OBSTACLES RELATED TO ESG PURSUITS IN OMAN a. Issues Concerning Regulations and Compliance: Difficulties in funding remains an obstacle to ESG implementation. Some companies find it difficult to manage compliance costs, and lack of relevant skill further aggravates the problem. b. Social Awareness and Changing Perceptions: There needs to be a significant change in societal perception towards ESG. There is the need for educational campaigns aimed at all relevant stakeholders in both the private and public sectors. c. Economic Development versus Environmental Sustainability: Increased reliance on oil by Oman makes it difficult to achieve a balance between economic performance and sustainability objectives. Risk management that goes beyond oil diversification is necessary. RECOMMENDATIONS AND FORECASTS FOR THE FUTURE A stronger ESG approach in Oman would be possible through overall adoption of the following recommendations. • Policy Enhancements: The government should introduce more robust ESG policies and incentives for businesses adopting sustainable practices. • Capacity Building: Training programmes and knowledge-sharing platforms can help businesses understand and implement ESG effectively. • Public-Private Partnerships: Collaborations between government agencies and private enterprises can drive ESG initiatives and investments. • Sustainable Finance: Encouraging green financing and ESG-linked bonds can support eco-friendly projects and economic diversification CONCLUSION Oman is undergoing an economic transformation, and the country is highly focused on economic diversification, and ESG principles will be incredibly useful in achieving this goal. Oman can significantly improve economic diversification, attract foreign investment, and guarantee prolonged welfare by implementing environmental, social, and governance policies, as well, by promoting sustainability. Creating policies that center around ESG will not only deliver positive change in Oman, but also on an international level.
