Oman: Clean Energy In Oman

Last Updated: 20 March 2018
Article by Arif Mawany


Oman's National Energy Strategy identified that the country's power demands require a greater mix of energy contributors and that at least 10% of the country's power requirements should be capable of being derived from renewable energy sources by 2025. It is expected that the majority of the renewable energy will be onshore wind and solar projects, with the state controlled Petroleum Development Oman focusing on ensuring that renewable energy infrastructure projects gain traction during 2018 and beyond. There are a number of reasons for driving forward with solar and wind projects from the Government's perspective—greater competition, reducing Oman's carbon footprint and economic diversification are key catalysts. From a socio-economic perspective, the importance of sustaining the demands of a growing, energy hungry population are unavoidable.

Solar Power

Petroleum Development Oman (PDO), Oman's leading exploration and production company, has until very recently focused on the country's production of crude oil and supply of natural gas. PDO has made significant strides towards creating a sustainable renewable energy market through its support of a number of projects involving the installation of solar photo voltaic modules in existing concession areas. Energy from the photo voltaic modules is used to provide power for PDO's office buildings saving over 3.1 million cubic metres of gas annually. The cells provide enough electricity for approximately 1,000 homes. PDO is already using solar energy for street lighting and water heating in one of its employee housing developments and has recently completed the first block of the largest solar energy plant in the world (at full capacity) in southern Oman. The project involves using solar power (in place of natural gas) to create steam to use in thermal enhanced oil recovery.

In addition to issuing tenders for up to five 20 megawatt solar projects in Oman, PDO (soon to be renamed, Energy Development Oman) is proposing to work with Oman Power and Water Procurement Company on a solar project with an expected capacity of 500 megawatt.

Wind Power

Oman's commitment to clean energy can be further demonstrated through the recent creation of a joint venture between the Rural Areas Electricity Company and UAE based Masdar. The joint venture awarded an EPC contract to an international consortium to build the first large scale wind farm in South Oman on a 1,900 hectare site. The wind farm is estimated to generate 50 megawatts to supply 16,000 homes, representing approximately 7% of the total installed power generation capacity in the local area. GE the consortium lead member, will supply thirteen 3.8 megawatt wind turbines with construction support being provided by TSK, another consortium member. It is expected that the success of this project will set the blueprint for other projects in Oman and across the GCC region and potentially lead to a higher contribution by wind power to the country's power requirements. The speed of growth in this sector in part depends on whether coastal regions can be made available to house wind power stations without upsetting the natural aesthetic appeal of the landscape which might better be served to create income generating tourist infrastructure.

Legislative Framework and Regulator

Legislation relating to clean energy is spread between health and safety rules and the rules relating to the electrical standards imposed on licence holders. The Authority for Electricity Regulation ("AER") holds responsibility for ensuring the safe and secure development of the electricity and water sector and conducts regular audits to assess the policies, plans, processes and procedures of licence holders. A technical team conducts incident investigations into safety related incidents with the public prosecutor becoming involved if required.

AER is also charged with monitoring continuity of supply. This is achieved by ensuring the licencees comply with the electrical standards and related regulations.

The AER is also responsible for monitoring the efficiency of capital investments as part of general capital expenditure control. Technical reviews are undertaken at the beginning of a project and continue throughout its life to ensure technical and procurement efficiency is maintained.

The AER has also taken responsibility for monitoring abuse of market power by enforcing economic purchase conditions, approving price structures of intra-sector transactions and using retail price index controls. Consumers are at risk of escalation of electricity prices in a market where the market players are, at least currently, state owned entities with monopoly in the sector and the AER will monitor this area closely to ensure that there is no breach of Oman's competition and consumer protection legislation.

Regulatory Framework for Electric Vehicles

An area of interest for the growing electric vehicles ("EV") market is the AER's recent decision to introduce framework legislation in Oman to support the introduction of vehicles which are powered solely by electricity. The AER is currently undertaking a review of international best practice in relation to the regulatory framework including potential capital costs of developing public EV recharge stations, network and connection issues, safety issues, metering costs and modifications to the licensing regime. Regulations are expected to be introduced towards the end of 2018. EVs are being adopted rapidly by other global markets and the Government of Oman is keen to ensure that infrastructure and regulations are in place to support users as the market for EVs expands. As part of the Global Electrical Vehicle Road Trip which was held in January 2018, the first charging stations were introduced in Oman's two main commercial cities, Muscat and Sohar and additional stations are opening up across the country. The road trip involved electric vehicles conducting a 1,217km road trip starting in Abu Dhabi, stopping in Sohar, Muscat and ending in Dubai to showcase EV technology.

Clean Energy Opportunities in Oman

It is clear that the clean energy market is ready for further growth in Oman over the coming 12-24 months. Through the successful implementation of the projects outlined in the paragraphs above, further tenders will be issued by Oman's state owned entities and opportunities are likely to be created for existing providers of clean energy technology as well as financiers of large infrastructure projects.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Related Topics
Related Articles
Up-coming Events Search
Font Size:
Mondaq on Twitter
Mondaq Free Registration
Gain access to Mondaq global archive of over 375,000 articles covering 200 countries with a personalised News Alert and automatic login on this device.
Mondaq News Alert (some suggested topics and region)
Select Topics
Registration (please scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of

To Use you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions