Renewables Power Oman’s Energy Expansion: What It Means for Investors and Business Growth in Oman
MUSCAT: The Ministry of Energy and Minerals is rapidly advancing renewable energy projects across Oman as part of a long-term strategy to enhance energy security, sustainability, and economic diversification.
The ministry aims to raise the share of renewable energy in the national electricity mix to 30 percent by 2030, while continuing to expand solar and wind power capacity in various regions nationwide.
Significant progress has already been made with the commissioning of major projects such as the Ibri (2) solar power plant, Manah (1) and Manah (2) solar projects, and the Dhofar (1) wind farm. These facilities provide a combined capacity of approximately 1,550 megawatts, accounting for about 9.26 percent of the country’s total electricity generation.
Several projects are currently under development. The Ibri (3) solar power project, which includes 100 megawatt-hours of battery energy storage, is expected to become operational by the second quarter of 2027, enhancing grid flexibility and supporting greater renewable energy integration. Additional wind power projects in Dhofar (2) and Jaalan Bani Bu Ali are slated for commercial operation in the third quarter of 2027, further strengthening Oman’s renewable energy capacity.
Looking ahead, Oman plans to launch several large-scale renewable projects before 2030. These include solar developments in Al Kamil W’al Wafi, Sinaw, and Marsa, alongside wind projects in Al Duqm, Mahout, Sadah, Shaleem, Al Hallaniyat Islands, and Al Jazir. Collectively, these projects are expected to deliver around 5,080 MW of solar power و 1,720 MW of wind energy capacity. Additionally, a waste-to-energy plant in Barka is scheduled to begin operations in 2031.
These initiatives will span multiple governorates, including Dhofar, Al Wusta, Al Batinah North and South, Al Sharqiyah North, Al Dhahirah, and Al Dakhiliyah, with approximately 65,000 square kilometers of land allocated for renewable development.
Oman’s renewable energy share is projected to increase to 30–40 percent by 2030, further rising to 60–70 percent by 2040, and reaching 90–100 percent by 2050.
Engineer Hamoud bin Hamad al Sawafi, Director General of Renewable Energy at the Ministry of Energy and Minerals, emphasized that renewable projects are vital for strengthening national energy security and supporting the transition to a sustainable economy aligned with Oman Vision 2040. He highlighted that the share of renewables connected to the grid rose from 4.26 percent in 2024 to 9.46 percent in 2025, with total renewable electricity generation surpassing four million megawatt-hours in 2025.
Environmental benefits are substantial: current projects help avoid approximately 1.62 million tonnes of CO2 emissions annually, with avoided emissions expected to reach nearly nine million tonnes by 2030—about seven million tonnes from solar and two million tonnes from wind. These projects also reduce natural gas consumption in electricity generation by around 1.5 billion cubic meters, lowering the power sector’s carbon intensity.
Economically, renewable projects deliver significant local value. Developments led by Nama Power and Water Procurement Company have achieved local added value between 15 and 22 percent, with future projects aiming for over 25 percent (around RO 25 million). Approximately RO 5.7 million has already been allocated to small and medium-sized enterprises involved in project supply chains.
Meanwhile, OQ Alternative Energy has expanded its renewable portfolio by more than 2,000 MW in 2025 through power purchase agreements, including projects like the Ibri (3) solar plant and the Dhofar (2) and Jaalan Bani Bu Ali wind farms, which together exceed 740 MW. Local content achievements include 23.85 percent for the North Oman solar project, 14.75 percent for Wind (1), and 18.5 percent for Wind (2).
Construction continues on the 128 MW North Oman solar project, while the Wind 1 and Wind 2 projects—comprising 36 turbines with a combined capacity of 234 MW—are progressing towards commercial operation in 2026.
The expansion of renewable energy aligns with Oman’s broader strategy to build a low-carbon energy system, foster emerging sectors like green hydrogen, promote clean technology innovation, and enhance the Sultanate’s competitiveness in the regional and global clean energy markets.
— أونا
تحليل خاص من عمانت | تصفح سوق عُمان
Oman’s ambitious renewable energy expansion, targeting 30-40% electricity from renewables by 2030 and up to 100% by 2050, presents significant opportunities for businesses and investors in solar, wind, and emerging sectors like green hydrogen. This scale of investment enhances energy security and sustainability while fostering local economic growth, especially through increased SME participation and local content requirements. Strategic investors should prioritize partnerships in project supply chains and clean technology innovation to capitalize on Oman’s transition to a low-carbon economy.
