Renewable Energy in Oman: How Powering 155,000 Homes Can Transform Your Business and Investment Opportunities
Muscat: The Authority for Public Services Regulation (APSR) held a media briefing in Muscat to announce several key initiatives aimed at enhancing performance standards in vital utility sectors. Notably, the APSR will now double compensation for recurring service level failures by companies, underscoring its commitment to subscriber rights.
Dr. Mansour bin Talib Al-Hinai, APSR chairman, highlighted significant growth trends between 2021 and 2025. The water and sanitation sector experienced a 13% increase in water consumption alongside a 12% rise in subscriber numbers. Electricity subscribers grew by 14%, with consumption surging by 27%, reflecting Oman’s ongoing economic and urban development.
Renewable energy production also saw remarkable progress, reaching 9.46% of total energy production by the end of 2025, compared to just 1.95% in 2021. This renewable capacity now adequately powers approximately 155,000 homes.
APSR’s digital transformation achievements were emphasized, with full digitization of services achieved. Water and electricity sectors installed smart meters at rates of 99% and 80% respectively, while actual meter readings reached 97% for electricity and nearly 98% for water.
Dr. Al-Hinai also announced tightened service assurance standards, including the doubling of penalties for repeat violations by service providers. He reaffirmed APSR’s dedication to enhancing operational efficiency within a robust regulatory framework that prioritizes governance and subscriber protection.
Improvements in subscriber protection have been notable, with the “Hasel” digital platform achieving a 99% resolution rate and the “Tajawob” platform reaching 100%. In 2025 alone, the Authority handled over 7,000 complaints and disbursed approximately RO153,000 in compensation to more than 9,000 subscribers.
Subscriber satisfaction with company performance rose to 75%, with average service delivery times recorded at 1.17 days for electricity and 6 days for water services.
The Omanization rate in sector companies reached an impressive 98.55%, while companies with permanent contracts achieved 78%. Approximately 2,050 new jobs were created in the basic services sector during 2025.
Significant support for small and medium enterprises (SMEs) was also highlighted, with spending increasing by 80% to RO119 million and local added value contributions rising by 35% to RO50 million.
Nama Water Services’ CEO provided further insight into the water and wastewater sector’s expansion, noting a 32% increase in network length and a 9% rise in treatment plants. Wastewater treatment compliance stands at 98%, with water quality tests up by 74% and a 99.81% compliance rate with Omani drinking water standards—reflecting stringent quality control.
Currently, 97 projects valued at approximately RO966 million are underway in the water and wastewater sector, aimed at further expanding infrastructure and improving service efficiency.
Special Analysis by Omanet | Navigate Oman’s Market
The APSR’s push for stringent performance standards and enhanced digital transformation signals a new era of accountability and efficiency in Oman’s vital utilities sectors, creating substantial opportunities for tech-driven service providers and SMEs to flourish. Smart investors should focus on renewable energy and infrastructure projects, while businesses must adapt to stricter compliance and leverage digital platforms to enhance customer satisfaction and operational resilience. This regulatory evolution also presents risks for laggards, as increased penalties and consumer protection measures heighten the stakes for service reliability.
