Market Overview
Oman’s renewable energy programme targets 30% of electricity generation from renewables by 2030, up from approximately 3% in 2024. The Oman Power and Water Procurement Company (OPWP) procures renewable capacity through competitive IPP tenders, with power purchase agreements providing long-term revenue certainty.
Solar PV dominates the near-term pipeline, with wind projects in Dhofar and green hydrogen representing medium-term growth areas.
Investment Case
Renewable IPPs offer contracted cashflows backed by OPWP with government guarantee. Solar irradiance levels in Oman are among the highest globally, supporting competitive levelised costs. The IPP framework is well-established and internationally bankable.
| Metric | Value |
|---|---|
| Renewable energy target | 30% by 2030 |
| Current renewable share | ~3% |
| Solar irradiance | 2,000+ kWh/m2/year |
| Wind resource (Dhofar) | 7-9 m/s average |
| PPA typical tenor | 15-25 years |
| Pipeline capacity | 5 GW+ through 2030 |
Risk Factors
Grid integration constraints may delay project connections. Land allocation processes can extend timelines. Curtailment risk exists as renewable penetration increases. Construction supply chain for remote sites requires planning.
Entry Strategy
OPWP tender participation requires pre-qualification. Consortium formation with EPC contractors and financial institutions is standard. Development rights for smaller projects may be available through SEZAD and free zones. Green hydrogen pilot programmes offer emerging opportunities.
Vision 2040 Alignment
Renewable energy is central to Vision 2040’s environmental sustainability and energy diversification objectives. The Oman Green Hydrogen Strategy provides an additional long-term growth vector with export market potential.