Overview
The GCC’s renewable energy transition presents a fascinating paradox: the world’s largest oil and gas producers are also investing billions in solar, wind, green hydrogen, and nuclear energy. Motivations include freeing up hydrocarbons for export by reducing domestic energy consumption, diversifying energy sources, meeting climate commitments, and positioning for a post-fossil-fuel economy. Progress varies significantly across member states, with some leading global benchmarks and others lagging.
Oman’s Position
Oman’s renewable energy sector is at an inflection point. Historically, the Sultanate was a relative latecomer to Gulf renewables, with solar and wind capacity remaining minimal compared to conventional gas-fired generation. However, the green hydrogen strategy has catapulted Oman into global prominence. The planned green hydrogen projects at Duqm, Salalah, and other locations target production capacity of over one million tonnes per year by 2030. Separately, the Ibri II solar plant (500 MW) and Dhofar wind farm demonstrate growing conventional renewable capacity.
Regional Comparison
The UAE leads the GCC in deployed renewable capacity, with the Al Dhafra solar plant (2 GW), the Barakah nuclear plant (5.6 GW when fully operational), and the Masdar initiative establishing Abu Dhabi as a clean energy hub. Saudi Arabia has announced massive solar and wind ambitions under the National Renewable Energy Programme but deployment has lagged announcements. Qatar and Kuwait have modest programmes. Oman’s green hydrogen focus gives it a distinctive positioning – potentially the GCC’s leading green hydrogen exporter – though solar deployment trails the UAE and Saudi Arabia.
Trajectory
Oman’s Hydrogen Economy Strategy targets the Sultanate becoming a top-five global green hydrogen exporter by 2030. This ambition is supported by excellent solar irradiance, available land, strategic port access, and strong international partnerships (with companies like BP, Shell, ACME, and InterContinental Energy). The Alternative Energy Strategy targets 30 percent renewable electricity by 2030. Execution risk is significant given the infrastructure scale required, but the strategic commitment is clear and represents Oman’s most distinctive diversification play.