16-05-2025
Oman's green energy policy to drive low-carbon shift
MUSCAT: A key policy issued by the Ministry of Energy and Minerals recently, enabling the self-generation and direct sale of electricity from renewable sources, has been described as a strategic catalyst in Oman's shift towards a low-carbon future.
Eng Mohsin al Hadhrami, Under-Secretary of the Ministry of Energy and Minerals, hailed the regulation, titled 'The Policy on the Use of Renewable Energy for Self-Generation and Direct Sale of Electricity' as 'strategic stride to accelerate the transformation of the energy sector and amplify the contributions of renewable sources to the national energy mix.'
In an interview featured in 'Wealth', the monthly newsletter of the Ministry, Al Hadhrami represents a bold effort by the government to further liberalise Oman's electricity market. Per this policy, eligible generators can sell output from renewable sources, chiefly solar and wind, directly to eligible consumers (typically large industrial and commercial entities), without the need to engage with the country's sole offtaker, Nama Power and Water Procurement Company. The policy outlines a regulatory framework governing the transit of electricity through the national grid, ensuring stability and operational efficiency.
Mohsin al Hadhrami
Importantly, the policy sets out a clear pathway for small-scale users, notably households and farms, to consider self-generation to support their individual energy requirements. Any surplus generation can be potentially monetised as well.
For investors and developers, the policy unlocks the possibility of entering into direct contracts with consumers—a paradigm shift that is expected to spur innovation and give rise to new business models in the energy space.
'From an investment perspective, the policy represents a golden opportunity to attract both foreign and domestic capital, as the Sultanate of Oman offers a transparent legislative environment and robust investment incentives,' the Under-Secretary said.
'This strategic alignment is concordant with Oman Vision 2040, which sets forth targets for the generation of 30% to 40% of electricity from renewable sources by 2030, mounting to 60% to 70% by 2040. These efforts are consistent with global endeavors to reduce carbon emissions, as well as the Sultanate's own vision to increase the share of renewable energy and enhance energy efficiency by 2030.'
Additionally, the policy is expected to spark a wave of industrial investments and technological investments, according to the official. It promises to open up new avenues for local enterprises in sectors such as solar panel manufacturing, energy storage, and green technology development. This local value creation is critical to Oman's broader economic diversification strategy, reducing reliance on fossil fuels while nurturing a homegrown green economy.
In essence, the policy represents a strategic step towards a sustainable and low-carbon economy towards a sustainable and low-carbon economic paradigm, wherein environmental imperatives are seamlessly integrated with avenues for investment, all within the framework of an ambitious national vision that anticipates a green and prosperous future.
It solidifies Oman's position as a key nexus in the future of green energy in the region and the world, he added in conclusion.
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