Transitioning from Energy Crisis to Security: How IRENA’s Renewable Insights Can Impact Your Business in Oman
Renewable Energy: A Strategic Solution Amid Global Energy Crisis, Says IRENA
A new policy advisory from the International Renewable Energy Agency (IRENA) highlights how the strategic deployment of renewable energy can enhance resilience against the ongoing energy crisis affecting nations worldwide.
The report targets policymakers grappling with disruptions in international energy markets and recommends immediate and long-term strategies to safeguard countries and communities from the adverse impacts of the crisis, while promoting economic recovery focused on energy security and resilience.
Renewable energy sources are already decreasing reliance on fossil fuel imports across various countries, with significant findings noted in regions like Spain and Portugal in Europe as well as China, India, and Pakistan in Asia. Globally, renewable power capacity is expanding at an unprecedented rate, with an impressive addition of 692 GW in 2025.
The report further emphasizes the declining costs associated with renewable energy, stating that over 85% of new renewables are now more affordable than their fossil fuel counterparts. Since 2010, solar energy costs have plummeted by 87%, onshore wind by 55%, and battery storage by 93%.
Additionally, “firm” renewables, which integrate wind or solar energy with battery storage, can provide 24/7 power at lower costs than most fossil fuel systems.
IRENA Director-General Francesco La Camera remarked, “The current crisis clearly demonstrates the strategic case for renewables as a national security imperative.” He urged governments to consider targeted interventions to accelerate investments in renewable energy and electrification across various sectors.
The ongoing conflict in the Middle East underscores the fundamental vulnerabilities of energy systems that remain dependent on fossil fuels, particularly in markets where oil and gas prices significantly influence electricity costs.
These dynamics could disrupt entire economies and amplify inflationary pressures, particularly affecting the most vulnerable communities globally. La Camera noted, “Country examples in IRENA’s advisory confirm the resilience of renewables in strengthening energy system security while reducing exposure to fossil fuel price volatility and supporting long-term economic stability.”
The advisory outlines several recommendations for policymakers, including:
- Facilitating the deployment of distributed renewables through cross-sector partnerships to enable rapid responses.
- Providing financial and logistical support to fast-track development.
- Implementing public information campaigns and mandates to reduce energy demand.
- Adopting time-of-use tariffs to encourage consumers to adjust their electricity consumption based on periods of high renewable supply and lower prices.
Moreover, it suggests implementing financial measures such as grants, subsidies, or tax rebates to promote electrification, as well as accelerating the deployment of solar PV–battery hybrid mini-grids in remote areas.
In mid-term actions, the focus should be on hastening renewable energy deployment while enhancing resilience and investment conditions. This includes advancing renewable and grid projects, allocating designated funding, and adapting policies to address inflation and supply chain challenges. Expanding battery storage capacity and demand-side management will also promote greater flexibility within the energy system.
Looking towards the long term, IRENA emphasizes the need for clear policy frameworks to attract investment, integrate electrification into national planning, and bolster domestic supply chains. It advocates for facilitating hybrid projects, supporting industrial electrification, and linking fossil fuel support to renewable energy targets.
Special Analysis by Omanet | Navigate Oman’s Market
The strategic shift towards renewables underscores a vital opportunity for businesses in Oman to increase resilience against energy volatility while reducing reliance on fossil fuels. As costs of renewables plummet, this landscape opens avenues for innovative investment and collaborative partnerships, particularly in off-grid solutions and electrification initiatives. Smart investors and entrepreneurs should focus on aligning with government policies that promote renewables to harness both economic stability and competitive advantage in a changing market.
