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Observer
17-05-2025
- Business
- Observer
Credible energy transition hinges on regulatory agility: MEM official
MUSCAT: The complexity of policy frameworks—not technology or ambition—is the real bottleneck in accelerating renewable energy deployment, said Dr Firas al Abduwani, Director General of Renewable Energy and Hydrogen at the Ministry of Energy and Minerals (MEM), during a high-level panel at the Oman Petroleum & Energy Show (OPES) on Tuesday. Speaking during the 'Innovation in New Energies to Enable the Transition' session hosted by the Society of Petroleum Engineers (SPE), Dr Al Abduwani emphasised that policymaking—often criticised as slow or outdated—is far more nuanced than commonly assumed. 'Everyone says, 'Why aren't we doing more renewables?' and the answer is always 'the policy'. But very few understand how deeply layered and technically complex these policies are,' he said. 'It's not just about ambition. It's about designing policies that reflect economic realities, legacy infrastructure, and affordability for consumers and industry.' HIDDEN COSTS, REAL CONSTRAINTS Dr Al Abduwani explained that legacy energy systems—particularly natural gas—are heavily subsidised and socially embedded in Oman's industrial model, which makes sudden shifts toward renewables politically and economically risky. 'Gas in Oman is not treated purely as a commodity—it's socialised,' he said. 'It underpins electricity prices, industrial feedstock, and household consumption. Reforming that structure is like changing the wheels of a moving car.' He estimated that Oman continues to spend over a billion dollars annually in subsidies, underscoring how embedded fossil fuels remain in the nation's economic architecture. A CALL FOR AGILE, ADAPTIVE POLICY To enable a credible energy transition, Dr Al Abduwani called for more agile regulatory systems—where electricity generation, storage, and distribution are interconnected with real-time pricing and dynamic access across the grid. 'A modern energy policy must give generators and consumers the flexibility to interact with the grid dynamically. If you want renewables to compete fairly, you need to unbundle and de-subsidise the system with surgical precision,' he said. He pointed to international examples—such as Germany's multi-decade subsidy transition and market restructuring—as models worth studying, though not necessarily copying outright. 'Oman must chart its own path, but we can learn from how others sequence the shift—Germany, for instance, gave industries 10 years to adapt to new rules.' TRANSITION WITHOUT DISRUPTION Acknowledging that energy transitions risk social backlash if done poorly, Dr Al-Abduwani called for a holistic approach: engaging regulators, consumers, industries, and financiers in synchronised reform. 'You can't expect households and businesses to absorb cost shocks overnight. Transition must be just, data-driven, and inclusive,' he said. 'And that's why policy is hard. It's not just about writing laws—it's about managing trade-offs between security, affordability, and sustainability.' The OPES panel, which attracted government officials, private sector executives, and global energy experts, was part of broader discussions around Oman's clean energy roadmap under Vision 2040, particularly its green hydrogen ambitions and renewable capacity targets.
Observer
04-03-2025
- Business
- Observer
Policy reforms to boost Oman's renewables-focused electricity market
MUSCAT: New policy initiatives unveiled recently by the Ministry of Energy and Minerals are designed to pave the way for a more decentralised, efficient and sustainable electricity market that benefits both producers and consumers, a key Ministry official has emphasised. Dr Firas al Abduwani, Director General of Renewable Energy and Hydrogen, said the reforms centring around auto generation, direct sales and wheeling, aim to create a conducive environment for independent developers in Oman's expanding renewable energy space. Participating in a webinar on the theme, 'The Role of Liberalisation in the Omani Energy Market', hosted by the British-Omani Society, the official stated: 'These reforms are designed to open up the market. Rather than having all transactions pass through Nama Power and Water Procurement (PWP), we are enabling bilateral agreements where eligible generators and consumers can transact directly while utilising the national grid for wheeling. This marks a crucial step in reducing dependence on centralised procurement and setting the stage for a more competitive market.' The 'Renewable Energy Policy for Self-Generation and Direct Sale', launched earlier this year, seeks to promote sustainable development, encourage investments in clean energy and regulate electricity self-generation and direct sales. It is a key milestone in the country's energy transition as it targets generating 90% to 100% of its electricity from renewable sources by 2050. Elaborating on the broader objectives behind these policy initiatives, Dr Al Abduwani noted that the Ministry is also embarking on a comprehensive energy market redesign. 'We are conducting a full assessment, similar to the exercise that led to the establishment of the regulator, to ensure a holistic and efficient market structure.' Additionally, the Ministry, in coordination with the Oman Net-Zero Centre, is driving new initiatives such as renewable energy certificates and mandatory decarbonisation targets. 'The renewable energy certificate market will ensure that objectives and targets are met efficiently,' he said. Furthermore, the government is evaluating various renewable energy and storage options, including pumped hydro, to enhance grid stability. 'We are looking at ways to integrate storage solutions and ensure that our policies support the growth of renewables without compromising reliability,' he added. Beyond market liberalisation, Dr Al Abduwani emphasised the Ministry's vision for fostering national champions in the renewable energy sector. 'With Oman's vast renewable energy potential, we aim to see major national champions operating internationally, with OQ Alternative Energy (part of OQ Group) playing a key role. Simultaneously, we want to create ample space for independent developers to drive innovation, challenge norms and contribute solutions.' Also taking part in the webinar were: Eng Hilal al Ghaithi, Director of Energy — The Authority for Public Services Regulation (APSR); Head of Project Development — Clean Energy, OQ Alternative Energy; and Mikey Clark, CEO of Relode. Session hosts included: Chris Breeze, Vice Chair — British Omani Society; and Anna Halpern-Lande, Co-CEO and Co-Founder, Ortus Climate Mitigation.
