Energy Transition in Oman: A Deep Dive

Oman continues to establish itself as a regional leader in energy transition, with July 2025 marking a month of milestone announcements, tender launches, and reinforced commitments aligning with its Vision 2040 net-zero goals. The sultanate’s renewable energy share in electricity production more than doubled in the first five months of this year, driven by the rollout of major solar and wind projects. Between January and May 2025, solar and wind contributed nearly 12% of total electricity production compared to just 5% at the end of 2024, according to Oman Observer. Nama Power and Water Procurement Company (PWP) produced 1.88 terawatt-hours primarily from solar, nearly matching 2024’s total renewable output.

This surge translates into tangible environmental gains, with nearly 90,000 homes powered by clean electricity, cutting emissions by over 617,000 tonnes annually. Oman’s pipeline remains robust, targeting a renewable energy share of 30–40% by 2030 and scaling up to 60–70% by 2040, in pursuit of its 100% clean energy ambition by 2050.

Key developments in July included the advancement of the Sur Hydrogen Cluster feasibility study, aimed at integrating green hydrogen with solar and wind capacity to establish Oman as a clean fuels export hub. The government also signed an MOU with Turkey to collaborate on renewable and alternative fuel projects, reinforcing regional and international cooperation in energy transition.

Wind energy received a boost with tenders launched for five projects exceeding 1 GW capacity, representing an investment of $1.2 billion. Meanwhile, the “Solar PV IPPs 2030” programme, set to open for RFPs by 2027, will add 3 GW of capacity with an estimated investment of up to $1.5 billion. Solar remains central to Oman’s decarbonisation strategy, with four additional plants planned over the next six years, contributing to a pipeline capacity of 4,500 MW at a projected cost of $2.8 billion.

Complementing these infrastructure investments, the Oman Investment Authority and China’s Templewater launched a $200 million clean energy transition fund, targeting projects across clean molecules, smart mobility, energy storage, and renewables. In parallel, PDO advanced its CO₂ injection pilot at Dhulaima field to enhance oil recovery while targeting 30% operational energy from renewables by 2026.

These initiatives highlight Oman’s integrated approach to decarbonisation, energy security, and economic diversification. Beyond mere compliance with climate targets, Oman is positioning itself as a credible partner for global clean energy investments and a leader in the regional green hydrogen economy. The scale and pace of projects announced in July 2025 demonstrate a commitment to practical implementation, sending a clear signal that Oman’s energy transition is accelerating towards tangible and measurable outcomes.

Data Source: Oman Observer, Zawya, AGBI