New Power Agreements in Oman: What They Mean for Investors and Business Growth Opportunities
MUSCAT: Energy companies listed on the Muscat Stock Exchange are preparing to sign new long-term power purchase agreements (PPAs) with Nama Power and Water Procurement Company, a development anticipated to bolster operational sustainability, enhance financial stability, and secure steady revenue streams for the sector.
Al Suwadi Power, Al Batinah Power, and Al Anqa Power have confirmed receipt and acceptance of letters of assignment issued earlier this month. These companies are actively collaborating with Nama to finalize the signing of the agreements, which will extend their supply commitments for 15 years, reaching into the mid-2040s.
The new agreements with Al Suwadi Power and Al Batinah Power are slated to commence on April 1, 2028, following the expiration of their current contracts, and will remain effective until March 31, 2043. The contract with Al Anqa Power is set to begin on April 1, 2029, continuing through March 31, 2044.
These PPAs form part of a broader strategy to enhance electricity sector reliability, especially during peak demand periods, while addressing the challenges posed by rising consumption driven by economic growth, expanding industrial activity, and population increases. The agreements also support Oman’s renewable energy ambitions, including solar and wind initiatives aimed at reducing carbon emissions.
Electricity production in Oman continues its steady growth trajectory, rising by approximately 5 percent to surpass 51,000 gigawatt-hours (GWh) in 2025. This compares to around 49,000 GWh in 2024 and 43,900 GWh in 2023, reflecting increased demand across residential, commercial, and industrial sectors.
The sector has also gained from recent agreements signed between Nama and key producers such as Sohar Power Company, Barka Water and Power Company, and Sembcorp Salalah Power and Water Company. These deals have strengthened operational stability and improved financial outcomes.
Sohar Power, which inked a nine-year agreement in December 2024, has restarted its open-cycle gas turbines and anticipates clearing its primary debt this year, opening the path for shareholder dividends. Sembcorp Salalah stated that its new contract will underpin long-term value creation and business stability. Barka Water and Power confirmed the timely servicing of RO 6.8 million in debt for 2025 and the successful completion of performance tests under its current contract.
Currently, 12 energy companies listed on the Muscat Stock Exchange operate in electricity and water production. Preliminary data shows these firms collectively posted net profits of RO 107.6 million in 2025, slightly down from RO 111.6 million in 2024. Leading the sector, Phoenix Power recorded profits of RO 26 million, followed by Sembcorp Salalah with RO 23.3 million and Sohar Power with RO 16.7 million.
The market capitalization of energy companies reached RO 809.3 million by the end of 2025, up from RO 461.3 million in 2014, driven by strong investor interest, improved company performance, and positive long-term sector outlooks.
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The long-term power purchase agreements with Nama Power signal enhanced financial stability and operational sustainability for Oman’s energy sector, creating a secure revenue outlook well into the 2040s. For businesses, this represents a stable energy supply foundation amid rising demand driven by economic growth and industrial expansionينبغي على المستثمرين ورجال الأعمال الأذكياء أن يأخذوا في الاعتبار capitalizing on this sector’s growth and increasing market capitalization while monitoring the country’s push towards renewables, which could reshape future energy investments and opportunities.
