Oman Boosts Economy with RO 250 Million Grid Expansion: What Investors and Entrepreneurs Need to Know
MUSCAT: The Oman Electricity Transmission Company (OETC) is making significant strides in enhancing the national electricity transmission network, with 35 major projects underway at a total investment of approximately RO 250.2 million. These initiatives are part of a comprehensive long-term strategy aimed at boosting grid capacity, reliability, and readiness to meet future energy demands.
OETC reported that over 60 percent of the second phase of the strategic Rabt project has been completed, while network expansion efforts in Dhofar Governorate have surpassed 90 percent completion. Notably, progress on the key project to connect Masirah Island to the main transmission network has exceeded 50 percent, employing advanced and complex technologies. Additionally, a fault current limiting system has been introduced on the 132 kV network to minimize outages, protect equipment, and enhance supply security. The main transmission station for the polysilicon factory project in Suhar has also been commissioned.
The company’s phased national grid expansion is planned to continue through 2030, with investments expected to exceed RO 1 billion. These efforts support national development priorities by meeting rising electricity demand across all sectors. Since its establishment, OETC has steadily expanded the network, increasing transmission stations from 29 in 2005 to 116 today, while extending the network length to more than 10,400 kilometers.
During 2025, OETC awarded nine new projects valued at over RO 250 million, many facilitating the integration of renewable energy. These projects are projected to reduce carbon emissions by more than 1.9 million tonnes annually and include connections for three wind power plants with a combined capacity of 1,220 megawatts and a 500-megawatt solar project. These initiatives align with Oman’s net-zero goals, optimize gas consumption, and support the growth of local clean energy industries.
By the end of November 2025, the transmission network’s reliability had reached 99.9999 percent despite record demand. The peak load on the main grid increased to 8,059 megawatts, while renewable energy accounted for 9.46 percent of total electricity supplied, driven by solar and wind projects in Ibri, Manah, and Dhofar.
Financially, OETC maintained robust credit ratings and advanced its green finance agenda by issuing Oman’s first green sukuk. The company repaid $1 billion in bonds and saw substantial growth in its asset base. Alongside infrastructure development, OETC invested in human capital, achieving a 97 percent Omanisation rate and awarding over RO 259 million in tenders to local firms, including significant support for SMEs.
Engineer Hisham bin Abdullah al Riyami, Acting CEO of OETC, stated that these accomplishments reflect years of accumulated experience, technological innovation, and strong collaboration with global industry leaders. He reaffirmed OETC’s commitment to providing a reliable, secure, and sustainable electricity transmission system that underpins Oman’s national development and energy transition objectives.
— ONA
Special Analysis by Omanet | Navigate Oman’s Market
Oman’s ambitious expansion and modernization of its electricity transmission network, backed by over RO 1 billion in investments through 2030, signal robust opportunities for businesses involved in infrastructure, renewable energy, and advanced technologies. The integration of large-scale solar and wind projects aligns with the country’s net-zero goals, creating new avenues for clean energy investors and entrepreneurs focused on sustainability. However, the pace and complexity of these upgrades also present risks for firms needing to swiftly adapt to evolving technical standards and competitive local procurement environments, emphasizing the need for strategic partnerships and innovation.
