Oman’s Ambitious Renewable Energy Target: What 60-70% Renewables by 2040 Mean for Investors and Businesses
MUSCAT – In 2025, Oman advanced several strategic projects across renewable energy and green hydrogen sectors, alongside expanding electricity infrastructure. The country also launched and progressed various initiatives and agreements, establishing export corridors to global markets.
Officials from the Ministry of Energy and Minerals outlined new policies aiming for at least 10% of energy production from renewable sources by the end of 2025. A comprehensive roadmap sets targets to increase renewable energy’s share to between 60% and 70% by 2040, eventually reaching 90% to 100% by 2050.
As part of Oman’s net zero ambitions, the Ministry continues to pursue initiatives to reduce emissions and boost energy efficiency. Notably, at the close of 2024, the Oman Net Zero Center was inaugurated. Additionally, the national energy efficiency program “Kafa’a” was launched in partnership with the Ministry of Labour and Sultan Qaboos University, focusing on training Omani professionals in energy auditing.
“Kafa’a” is a cornerstone in improving energy consumption efficiency across industrial, commercial, and residential sectors. It facilitates the development of policies and standards, enhances appliance and building efficiency, promotes optimal energy use, and raises public awareness about energy conservation.
The Ministry reiterates its commitment to energy transition policies that align with Oman’s goal of achieving net zero emissions by 2050.
Minister of Energy and Minerals, Eng. Salim Nasser al Aufi, emphasized the Ministry’s dedication to advancing strategic plans and strengthening both local and international partnerships. These efforts aim to bolster Oman’s standing in the energy and minerals sectors while balancing economic growth with environmental sustainability, in line with Oman Vision 2040.
Eng. Hamood al Sawafi, Director General of Renewable Energy and Hydrogen, shared a detailed overview of strategic plans and ongoing projects. Initiatives include reviewing the electricity market structure in collaboration with relevant bodies and activating a national energy model to support more efficient technical and financial decision-making. Key efforts also focus on implementing recommendations from Oman’s Energy Transition Strategy and the Integrated Energy Strategy.
To foster a culture of energy transition, awareness campaigns will be launched, including the introduction of the “Rushd” Energy Efficiency Award during Sustainability Week 2026. Additionally, mechanisms to meet industrial sector electricity demand are being developed.
Oman aims for renewable energy to constitute no less than 10% of total energy production by the end of 2026. Plans are underway to complete the National Renewable Energy Database Platform, allocate new project sites, and establish a renewable energy certification system. A landmark tender will supply the Hallaniyat Islands with renewable energy via an integrated clean energy and battery storage system, aiming to reduce reliance on fossil fuels.
In the hydrogen sector, Oman has secured more than $44 billion in investments across two rounds of green hydrogen auctions. The renewable energy capacity is expected to reach 26.6 gigawatts by 2030, alongside annual production of one million tons of green hydrogen.
To accelerate project development, Oman is finalizing the “single permit” system to simplify procedures. The country is also implementing a liquefied hydrogen trade corridor agreement with the Kingdom of the Netherlands, strengthening Oman’s footprint in global clean energy markets.
Future plans include launching an Investor Guide for the green hydrogen sector and completing the second phase of a study on hydrogen storage in natural geological formations.
Special Analysis by Omanet | Navigate Oman’s Market
Oman’s aggressive push towards achieving 60-70% renewable energy by 2040 and net zero emissions by 2050 presents major opportunities for businesses and investors in green technologies, hydrogen production, and energy efficiency services. The establishment of streamlined processes like the “single permit” system and international export corridors create a favorable environment for foreign investment and tech partnerships, while companies ignoring this shift risk being sidelined in a rapidly evolving energy market. Smart entrepreneurs should prioritize innovation in clean energy solutions, talent development, and sustainability compliance to capitalize on Oman’s ambitious roadmap.
