Wednesday 16 / October / 2024
Muscat: Oman’s energy sector is undergoing a significant transformation, driven by the government’s focus on diversifying its energy sources and enhancing the efficiency of its infrastructure, according to a new report.
“The growing emphasis on renewable energy, energy efficiency, and alternative energy sources, such as nuclear power and hydrogen, is expected to reshape the country’s energy landscape in the coming years,” the London-based EnergyPortal.eu said in its latest report titled 'Oman’s Energy Market: Key Trends and Future Outlook'.
The report further said that addressing the challenges of investment, human capital development, and regulatory support will be crucial for the successful realisation of Oman’s energy sector goals.
The country’s energy sector is primarily driven by oil and gas production, which has been the backbone of its economy for decades, the report said.
The Omani government has been actively pursuing alternative energy sources, such as renewables, to ensure sustainable growth and reduce the country’s dependence on hydrocarbons.
One of the most notable trends in Oman’s energy market is the growing emphasis on renewable energy, the report said.
“The government has set ambitious targets for renewable energy generation, aiming to achieve 10 percent of the country’s total power generation capacity from renewables by 2025. This is a significant increase from the current levels, which stand at less than one percent. To achieve this target, Oman has been actively investing in solar and wind power projects, with several large-scale projects currently under development,” the report further added.
For instance, the 500 MW Ibri II Solar Independent Power Project (IPP) is set to become the largest utility-scale solar power plant in Oman upon completion in 2022. Additionally, the 50MW Dhofar Wind Farm, the first utility-scale wind farm in the country, began operations in 2020, marking a significant milestone in Oman’s renewable energy journey. These projects, along with several others in the pipeline, highlight the government’s commitment to expanding the country’s renewable energy portfolio.
The report further said that another key trend shaping Oman’s energy market is the increasing focus on energy efficiency and conservation. The government has been implementing various initiatives to promote energy efficiency, such as the adoption of energy-efficient building codes and the introduction of energy performance labels for electrical appliances. Moreover, Oman has been investing in upgrading its existing power infrastructure to reduce transmission and distribution losses, thereby enhancing the overall efficiency of the energy sector.
In addition to renewables and energy efficiency, Oman has also been exploring the potential of other alternative energy sources, such as nuclear power and hydrogen. In 2019, the country signed a Memorandum of Understanding (MoU) with the United States to cooperate on the peaceful use of nuclear energy, signalling its interest in exploring nuclear power as a potential energy source. Furthermore, Oman has been actively participating in global discussions on the hydrogen economy, recognising the potential of hydrogen as a clean and sustainable energy carrier.
The future outlook for Oman’s energy market appears promising, with the government’s commitment to diversifying its energy sources and enhancing the efficiency of its infrastructure. However, there are several challenges that the country needs to address to ensure the successful transformation of its energy sector.
