Oman’s Renewables Surge to 11.5% of Total Power Output: Impacts and Opportunities for Investors and Businesses
MUSCAT: The share of solar and wind energy in Oman’s total electricity generation has dramatically increased, reaching approximately 11.5% during the first five months of 2025 (January–May), compared to about 4.88% at the end of December 2024.
According to the Nama Power and Water Procurement Company (PWP), the exclusive buyer of electricity and water capacity in Oman, renewable energy—primarily sourced from solar—contributed 1.88 terawatt-hours (TWh) during this five-month period. This figure stands in contrast to the total renewable output of 2.4 TWh recorded for the entirety of 2024.
During this period, nearly 89,840 households benefitted from clean electricity, resulting in an estimated annual reduction of 617,300 tonnes in emissions, as reported by Nama PWP.
This swift expansion in renewable energy generation aligns with the Omani government’s initiative to achieve a clean energy share of approximately 30–40% of total generation capacity by 2030, increasing to 60–70% by 2040, with an ultimate goal of 100% clean energy capacity by 2050.
Currently, several utility-scale renewable energy projects connected to the national grid include the Dhofar I Wind Farm (50 MW), Ibri II Solar IPP (500 MW), and the combined capacities of Manah 1 and Manah 2 Solar IPPs (1,000 MW). The upcoming addition to this grid will be the Ibri III Solar IPP (500 MW), which is still in early development.
Looking ahead, Oman is placing a stronger emphasis on wind energy, with five proposed wind farms exceeding 1 gigawatt (GW) of capacity currently undergoing competitive tendering, managed by Nama PWP. These developments are anticipated in Jaalan Bani Bu Ali, Duqm, Mahoot, Dhofar, and Sadah, with a total investment estimated at around RO 450 million (approximately $1.2 billion).
In addition, a series of new solar Independent Power Projects (IPPs), totaling around 4,500 megawatts (MW) in capacity, are also in the planning stages, requiring an estimated investment of $2.8 billion. At least four new solar initiatives are slated for development over the next six years.
The most significant of these initiatives is the ‘Solar PV IPPs 2030’ mega-project, which involves one or more developments with a combined capacity of 3 GW. A Request for Proposals (RfP) for this ambitious project—estimated to cost between $1 billion and $1.5 billion—is expected to be released in the first quarter of 2027, with commercial operations projected to commence by the first quarter of 2030.
Following this, the ‘Solar PV IPPs 2029’ initiative is focused on establishing a 1 GW capacity photovoltaic project, with a forecasted investment of $600–800 million, set to begin operations in the first quarter of 2029.
Moreover, a 250–300 MW solar PV project is anticipated in Sinaw, located in the North Al Sharqiyah Governorate, with an estimated value of $200–250 million. This plant is expected to be operational by the second quarter of 2028. Recently, Nama PWP has also initiated a competitive tender for a 280 MW solar IPP at Al Kamil in South Al Sharqiyah Governorate, budgeted at $200–250 million, which is projected to start operations by the first quarter of 2028.
Special Analysis by Omanet | Navigate Oman’s Market
Oman’s commitment to renewables is rising rapidly, with solar and wind capacity contributing over 11.5% to electricity generation, highlighting significant business opportunities in the clean energy sector. The government’s strategic goal of achieving 30-40% clean energy by 2030 presents an imperative for entrepreneurs and investors to explore investments in upcoming projects, estimated at around $4 billion over the next six years. However, competition in securing contracts for these Independent Power Projects (IPPs) may also introduce risks as the market matures.
