Overview
Oman’s National Energy Strategy provides the long-term framework for managing the Sultanate’s energy transition from a hydrocarbon-dependent system to a diversified energy mix that includes significant renewable energy and green hydrogen capacity. The strategy addresses both domestic energy needs and export opportunities, recognizing that Oman’s abundant solar and wind resources position it as a potential major exporter of clean energy and green fuels. Key targets include achieving 30 percent renewable energy in the domestic electricity mix by 2030, developing large-scale green hydrogen production capacity for export, improving energy efficiency across all sectors, and reducing the carbon intensity of remaining fossil fuel operations through carbon capture and storage technology.
Key Facts
- Targets 30 percent renewable energy in the domestic electricity mix by 2030
- Large-scale solar and wind farm development across multiple sites
- Green hydrogen production targeting millions of tonnes annually for export
- Energy efficiency mandates for buildings, industry, and transport
- Continued optimization of oil and gas production with lower carbon intensity
- Development of carbon capture and storage capacity
- Investment in electricity grid modernization and smart grid technology
Significance for Vision 2040
The National Energy Strategy is a cornerstone of Vision 2040’s economic and environmental objectives. By developing renewable energy capacity, Oman reduces its domestic consumption of natural gas for power generation, freeing gas for higher-value industrial applications and export. The green hydrogen strategy opens an entirely new export industry that could eventually rival hydrocarbons in revenue generation, directly supporting economic diversification. Energy efficiency improvements reduce costs for businesses and households, improving economic competitiveness. The strategy also creates new industries and employment in renewable energy manufacturing, installation, and maintenance, providing career pathways for Omani youth. International partnerships in renewable energy and hydrogen development bring technology transfer and foreign investment that accelerate Oman’s capabilities in these sectors.