“Backed by $2.8 billion investment, Oman’s renewable energy projects represents its response to growing energy needs and commitment to achieve energy security through diversified sources”
Oman experiences some of the highest solar radiation levels globally, making it well-positioned to capitalize on the shift to renewable energy. As part of its National Vision 2040, Oman is steadily advancing toward its renewable energy objectives, with a strong emphasis on solar and wind projects that align with its ambitious green hydrogen strategy and its goal of achieving carbon neutrality by 2050. By 2023, the country had reached a solar capacity of 672 MW, with plans to expand renewable energy capacity to 4,000 MW by 2030. Notably, large-scale solar initiatives such as the Ibri Solar Project—one of the region’s most significant—have played a key role in strengthening Oman’s renewable energy portfolio.
Oman has introduced several initiatives to accelerate renewable energy adoption, including incentives for residential solar installations. As a result, solar PV applications have surged, particularly in the residential and commercial sectors, with grid-connected solar PV project applications nearly doubling in 2023.
Oman plans to expand renewable energy capacity to 4,000 MW by 2030
Key Market Insights
- Oman’s solar energy market is driven by the government’s ambitious goals to raise the percentage of renewable energy to 30% by 2030, then to 60%-70% by 2040 and ultimately reaching 100% by 2050.
- Key Projects include:
- Manah 1, Manah 2 with a production capacity of 1,000 MW
- Ibri 3 Solar Energy Project with a production capacity of 500 MW
- The declining costs of solar panels and technological advancements have made solar energy more affordable and efficient, contributing to market growth.
- With a planned capacity of 4,000 MW, Oman is gradually decreasing its reliance on fossil fuels, not only to meet domestic energy demands but also to unlock opportunities for exporting clean energy to neighboring countries. By shaping its energy future, Oman is fostering long-term stability and sustainability.
Market drivers for growth of solar sector in Oman
- Government Initiatives: Oman’s government has launched several initiatives, such as the “Solar PV IPPs 2029” to promote renewable energy sources and reduce reliance on fossil fuels.
- Abundance of Solar Resources: Oman has ample sunlight throughout the year, making it a suitable location for solar energy projects. The high solar irradiation levels ensure maximum energy production.
- Environmental Benefits: Solar energy is a clean and sustainable source of energy that reduces carbon emissions, air pollution, and dependence on finite fossil fuel resources.
- Economic Diversification: The solar energy market presents opportunities for economic diversification and the development of new industries, creating jobs and driving economic growth.
- Technological Advancements: Ongoing technological innovations and improvements in solar panels, energy storage systems, and grid integration are making solar energy more reliable and cost-effective.
Key benefits for industry participants and stake holders
- Economic Growth and Job Creation: The growth of the Oman’s solar energy market contributes to economic diversification and the development of new industries, creating job opportunities and attracting investments.
- Environmental Sustainability: Solar energy reduces carbon emissions, air pollution, and dependence on finite fossil fuels, aligning with Oman’s commitment to environmental sustainability and international climate goals.
- Energy Security: Diversification of Oman’s energy mix through solar energy reduces reliance on imported fossil fuels and enhances energy security.
- Cost Savings: Solar energy offers cost savings over the long term, as it provides a stable and predictable source of electricity and reduces reliance on volatile fuel prices.
- Technological Advancements: Industry participants can leverage Oman’s high potential solar energy sector to drive technological innovations, research and development, and collaboration with international partners.
Market Key Trends
- Technological Advancements: The market is witnessing advancements in solar panel efficiency, energy storage systems, and smart grid integration, leading to improved performance and cost reduction.
- Increasing Investments: Domestic and international investors are showing a growing interest in Oman’s solar energy market, leading to increased investments in solar projects, research, and development.
- Collaborations and Partnerships: Companies are forming partnerships and collaborations to leverage expertise and expand market presence in Oman’s solar energy sector.
- Energy Storage Solutions: The integration of energy storage systems, such as batteries, is gaining momentum to ensure a stable and reliable supply of electricity from solar sources, even during peak demand or low sunlight conditions.