Recently, during the visit of Sultan Hussein of Oman to China, Nama Holding, a subsidiary of the Oman Investment Authority, signed a framework agreement with State Grid International Development Co., Ltd., planning to build a 1GW battery energy storage system in Oman. The agreement is worth approximately 384.5 million Omani riyals, equivalent to about 1 billion US dollars. During the same period, Oman and China signed 23 investment and cooperation agreements, with energy storage being one of them. The weight of this business lies not only in the amount, but also in the way and timing of State Grid's entry into Oman's energy storage industry.

Billion dollar framework implemented

The physical outline of the project is now clear. Two power stations each have a capacity of 500MW, one located at the Dukum Industrial Station in the central province of Oman and the other at the Ibri Solar 3 station in the northwestern province of Zahira. Both stations are connected to the Oman national transmission network at a voltage level of 400kV. Direct functional positioning: releasing electrical energy when the output of new energy decreases or the demand for electricity increases, helping grid operators cope with fluctuations in photovoltaic and wind power, and improving power supply reliability. At present, this is a framework agreement for establishing cooperation, evaluating, and developing two facilities. The specific battery types, energy storage duration, equipment procurement, and construction arrangements have not yet been announced. The signal significance of the agreement is stronger than the certainty of execution.

From transmission equity to energy storage development

The intersection between State Grid and Oman's power grid does not begin with energy storage. In 2020, State Grid completed the acquisition of 49% equity of Oman Power Transmission Company and deeply participated in Oman's power transmission infrastructure. This energy storage framework agreement extends the cooperation between the two parties from the equity level of the transmission grid to the investment, evaluation, and development of grid flexibility assets. The 500MW energy storage projects of Iburi and Dukum are currently being implemented, under the general contracting of China Electric Power Technology Equipment Co., Ltd. and Guodian Nanrui Technology Co., Ltd. The projects systematically apply Chinese technical standards and equipment systems, and will be electrified by July 2026. The Iburi project is positioned as a regional regulation hub to alleviate power grid transmission congestion; The Dukum project serves as the core stabilizer for the North South Interconnection Channel. The role of State Grid in Oman is shifting from investment and holding of transmission assets to a composite role of technical standards, system integration, and project development. Keywords: New Energy News Network, Energy Storage, International Infrastructure, Middle East

Oman's energy storage demand is rigid

Why does Oman need 1GW level battery energy storage at this node? The answer lies in the structural pressure of the power system. By the end of 2025, the proportion of renewable energy generation in Oman has increased from about 4% a few years ago to around 10%, with the goal of reaching 30% by 2030. The maximum electricity load of the power grid will increase from 9431.9 MW in 2026 to 13967.4 MW, with a target of 45% of new energy installed capacity. Oman Transmission Company plans to indirectly import approximately 5.7GW of photovoltaic power and over 2GW of wind power between 2027 and 2030. The influx of large-scale fluctuating power sources has shifted the demand for fast regulation and balanced resources in the power grid from optional to rigid. Energy storage is not just icing on the cake, but a prerequisite for the continued increase in the penetration rate of renewable energy. Gulf countries as a whole are increasing their efforts in energy storage, with Saudi Arabia pushing for the world's largest battery storage facility, and Oman's 1GW framework agreement being part of this regional trend.Editor/Gao Xue