Middle East
Exceeding 9.46%: Oman invests billions to initiate energy transition
Seetao 2025-12-29 14:32
  • This wave of green investment targeting 8.8 gigawatts of installed capacity will fundamentally reshape Oman's national economic pillar
  • With the official announcement by the State Grid operator that the proportion of renewable energy generation has reached 9.46%, Oman has passed the first key milestone in its energy transition
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As of 2025, the proportion of renewable energy generation in Oman's power grid has reached 9.46%, achieving a milestone leap from vision to reality. Behind this number is a crucial step for Oman towards a clean energy future, and it also signifies that this country, which is rich in traditional oil and gas resources, is drawing an ambitious new blueprint for green energy with unprecedented determination and effort.

From single digit percentage to millions of tons of green hydrogen

The current 9.46% share of renewable energy generation is mainly supported by four operational projects with a total installed capacity of 1550 megawatts. However, this is only a starting point for Oman's grand national strategy. The Omani government has set a clear three-stage roadmap: by 2030, to increase the proportion of renewable energy generation to 30%; By 2040, further increase to 60%; Ultimately achieving net zero carbon emissions by 2050.

To achieve this goal, Oman is driving an unprecedented wave of construction. According to official plans, the total installed capacity of renewable energy in China is expected to reach 8.8 gigawatts by 2030. This means that within the next five years, the existing installed capacity needs to be increased by more than three times, and new projects exceeding 7 gigawatts will be gradually connected to the grid. Furthermore, Oman is transforming its abundant solar and wind energy resources into green hydrogen for the future. The country plans to achieve an annual production of 1 million to 1.38 million tons of green hydrogen by 2030, committed to becoming a major global supplier of clean fuels.

Investing billions to build a solid foundation for transformation

Such a large-scale energy revolution cannot be separated from powerful and intelligent infrastructure as a 'highway'. As the sole operator of State Grid, OETC is playing a central role. The company has announced that it will invest up to $2.2 billion (approximately RMB 15.7 billion) between 2024 and 2028 to implement 32 key power grid expansion and modernization projects to ensure efficient transmission and consumption of new energy electricity. This massive investment aims to significantly increase the proportion of clean energy generation in Oman from 5.9% in 2024 to 32.7% in 2028.

At the same time, the financial "living water" also injects momentum into the transformation. OETC has specifically launched a green financing framework that meets international standards, aiming to attract global capital to invest in renewable energy and grid upgrades through the issuance of green bonds and loans. In addition, the Omani government actively cooperates with international financial institutions, such as signing a $120 million green financing arrangement with the International Finance Corporation (IFC) to specifically support clean energy projects for small and medium-sized enterprises in the country, and to integrate green concepts into the grassroots economy.

Green investment hotspot under global competition

Oman's energy transformation is not only a national action, but also a feast that gathers global technology and capital. Its abundant sunshine, vast land resources, and stable policy environment make it a hot spot for international energy giants to compete for layout.

Currently, companies from multiple countries including China, France, South Korea, and the United Arab Emirates are deeply involved in Oman's clean energy projects. For example, three wind and solar power projects with a total capacity of 300 megawatts, jointly developed by Total Energy of France and OQ Group of Oman, and constructed by POWERCHINA, have started construction in early 2025 and are expected to be put into operation by the end of 2026. In the upstream of the industrial chain, a project with a total investment of 1.6 billion US dollars and an annual output of 100000 tons of polycrystalline silicon has also been launched in the Suhar Industrial Zone, aiming to create the largest photovoltaic material manufacturing base in the Middle East and build a regional level clean energy supply chain. Keywords: Middle East news and information, Middle East international news

From solar panels rising from the desert to wind turbines rotating along the coast, Oman is demonstrating through practical actions that a traditional energy country can successfully navigate the wave of the green revolution. With over 7 gigawatts of new projects fully underway in the next five years, this ancient land will not only reshape its energy structure, but may also play an increasingly important role in the clean energy landscape of the Middle East and even the world.Editor/Cheng Liting

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