Oil-Rich Oman Bets Big on Renewable Energy

Oman, a prominent oil and gas producer, is investing heavily in renewable energy as part of its strategy to diversify its energy portfolio and transition towards a more sustainable future. The government has introduced new policies to bolster the country's green energy and cleantech sectors, encouraging private investment and fostering economic growth.

The Ministry of Energy and Minerals has unveiled a revised net-zero emissions strategy and a carbon markets regulatory framework, aiming to achieve net-zero carbon emissions by mid-century. Oman intends to position itself as a leading green hydrogen and renewable energy hub in the Middle East, bolstering its energy security and market competitiveness.

The Oman Centre for Net Zero, under the Energy Ministry, will manage the execution of the plan and monitor progress on emissions. The newly implemented net-zero pathway promises economic and climate benefits for investors in green energy and cleantech. With the growth of renewable energy and cleantech industries, Oman anticipates job creation and economic diversification.

By 2035, the government aims to reduce carbon emissions by 33 per cent through energy diversification, carbon capture and storage, and adaptation projects in seven key sectors. Despite the government's commitment to maintaining its fossil fuel output, Oman's renewable energy sector has experienced rapid expansion, with several large-scale solar and wind power projects currently operational.

The government plans to add over 5.7 GW of solar and 2 GW of wind power, along with 1 GW of battery storage, by the end of the decade. Key projects include the Dhofar I wind farm and two 1 GW solar projects, as well as the development of pumped hydro storage capacity and green hydrogen capabilities.