Two Major BESS Projects Near Completion in Oman: What This Means for Investors and Entrepreneurs
MUSCAT, JUNE 29 — Construction of two large-scale Battery Energy Storage System (BESS) projects is nearing completion in Ibri, Al Dhahirah Governorate, and Duqm, Al Wusta Governorate. These investments aim to bolster Oman’s energy security as the country accelerates its shift toward renewable electricity.
The Oman Electricity Transmission Company (OETC), which manages the national transmission grid, is leading these initiatives to enhance grid stability and reliability amid the increasing integration of intermittent solar and wind energy.
Each BESS facility boasts a storage capacity of 500 MW / 2,000 MWh, capable of delivering 500 MW of continuous power for four hours. This capacity ranks the projects among the largest utility-scale battery storage systems in the Gulf region.
OETC emphasized that BESS is a crucial enabler of grid flexibility, reliability, and efficiency, especially in managing peak demand, integrating renewables, and providing ancillary services. The systems support daily grid operations by balancing supply and demand, easing network congestion, and stabilizing the system during disturbances.
By storing surplus power produced by solar and wind farms and releasing it during peak demand periods, the BESS facilities will significantly enhance grid stability, promote greater renewable energy integration, and reduce dependency on gas-fired generation.
OETC’s 2025–2040 Master Plan further outlines a comprehensive strategy for deploying battery storage across Oman’s Main Interconnected System (MIS), Dhofar Power System (DPS), and Musandam region, aiding the nation’s long-term energy transition.
As part of this plan, OETC intends to add 1,000 MW / 2,000 MWh of battery storage to the MIS by mid-2026 and deploy a 30 MW / 120 MWh installation in Musandam by mid-2028.
Meanwhile, Nama Power and Water Procurement (PWP), the exclusive purchaser of electricity and water output, plans to secure 250 MW / 1,000 MWh of battery storage for the Dhofar system and an additional 500 MW / 2,000 MWh for the MIS between 2026 and 2027. According to OETC, these systems will mainly enable peak shaving by storing excess energy during low-demand periods and discharging it when demand peaks.
OETC described the phased BESS deployment as part of a forward-looking grid modernization strategy that prepares Oman to accommodate high levels of renewable energy while ensuring reliability, operational security, and cost efficiency as the nation works toward its 2050 decarbonization goals.
In parallel, OETC is exploring alternative sites to expand battery storage across the transmission network, further enhancing operational flexibility and supporting the country’s energy transition.
These investments align with Oman’s Net Zero 2050 vision, facilitating a more flexible, decarbonized, and efficient power system that optimizes grid performance and unlocks the full potential of renewable energy and green hydrogen production, according to the publicly traded company.
Special Analysis by Omanet | Navigate Oman’s Market
Oman’s significant investment in large-scale Battery Energy Storage Systems (BESS) signals a transformative shift towards a more resilient and renewable-based power grid, presenting strategic opportunities for energy, tech, and infrastructure sectors. Businesses and investors should consider positioning themselves to leverage the growing demand for energy storage, grid modernization, and renewable integration projects, while also preparing for the evolving regulatory landscape tied to Oman’s Net Zero 2050 goals. This proactive approach will be crucial to unlocking value in the emerging green economy and supporting Oman’s energy transition ambitions.
