OQAE’s 2 GW Renewable Energy Target by Year-End: What It Means for Oman’s Investment and Business Landscape
MUSCAT, DECEMBER 3 — OQ Alternative Energy (OQAE), the clean-energy investment division of OQ Group, anticipates reaching Final Investment Decisions (FID) on new renewable energy projects totaling approximately 2 gigawatts (GW) in capacity by the end of this year. This development is part of a broader investment portfolio aimed at supporting Oman’s decarbonisation objectives.
The forthcoming capacity, primarily from solar photovoltaic (PV) installations, builds upon three renewable projects currently under construction within Petroleum Development Oman’s (PDO) Block 6 concession. These projects, collectively known as the ‘Rawafid Projects’, consist of the Riyah-1 and Riyah-2 wind farms located at PDO’s Amin and West Nimr fields in southern Oman, and the North Solar plant at Saih Nihaydah in northern Oman. The renewable power generated by the 234 MW wind farms and the 105 MWAC solar facility will be supplied to PDO under long-term Power Purchase Agreements (PPAs). OQAE holds a 51% stake in these projects, with TotalEnergies Renouvelables owning the remaining 49%; both companies co-develop and operate the assets.
Eng Ghalib al Maamari, Acting CEO of OQ Alternative Energy, highlighted the accelerated pace of renewable energy investments in alignment with the company’s national mandate. Addressing the Green Hydrogen Summit Oman (GHSO) earlier this week, he stated: “OQ Alternative Energy has been tasked with two main roles. First, we serve as the National Champion for renewable projects in Oman, focusing on industrial usage and direct business-to-business (B2B) sales. We currently have several projects underway and project our portfolio to exceed 10 gigawatts by 2030.”
He emphasized the rapid growth of the company, which was established only a year ago with no initial investments. “By the end of this year, we will be making Final Investment Decisions on nearly 2 GW. This is a significant achievement made possible through strong government support,” Eng Al Maamari said.
OQAE is also central to Oman’s burgeoning green hydrogen sector. “We co-develop three major large-scale green hydrogen projects with international partners, and we place great value on these collaborations,” he noted.
“Our involvement in green hydrogen is multi-dimensional. As a commercial entity, we focus on developing projects that yield returns for our shareholder, the Omani state, while simultaneously advancing a national agenda. Green hydrogen is no longer optional, but essential for the future,” he added.
Eng Al Maamari affirmed OQAE’s commitment to enhancing local content, creating employment opportunities for Omanis, and supporting local industries to engage meaningfully in the green hydrogen value chain.
OQAE’s project portfolio includes the Sohar Renewable Energy Cluster in Al Batinah North Governorate (over 800 MW), Block 9 Solar in Al Dhahirah Governorate (140 MW), Block 60 Solar at Bisat (35 MW), Marsa Solar (300 MW), as well as initiatives such as HyPort Duqm, Green Energy Oman, and Salalah H2.
“We are developing very large, utility-scale renewable energy projects,” Eng Al Maamari concluded. “We believe that establishing this infrastructure backbone is key to supporting the growth of Oman’s green hydrogen economy, a goal we are actively pursuing and bringing to fruition.”
Special Analysis by Omanet | Navigate Oman’s Market
OQ Alternative Energy’s rapid scale-up to nearly 2 GW in renewable project investments by year-end signals a major strategic pivot for Oman’s energy sector, creating significant opportunities for local industries and investors to engage in the burgeoning green economy. Businesses should consider aligning with the government-backed renewable and green hydrogen initiatives, as these sectors are poised to become key growth drivers with strong state support and long-term B2B contracts, while smart investors must evaluate ventures that amplify local content and benefit from industrial partnerships in this fast-evolving market.
