To meet its ambitious net-zero goals, Oman has been encouraged to integrate more renewable energy, liberalise its market structure, and optimise its grid infrastructure. A new report from SolarPower Europe, supported by the Middle East Solar Industry Association (MESIA) and the Global Solar Council (GSC), highlights the significant potential for solar investment in the country.
Oman Solar Investment Opportunities
A new analysis from SolarPower Europe reveals a critical milestone for Oman: to meet its 2030 net-zero targets, the nation must install at least 13 GW of solar power. The findings are detailed in the organization’s “Oman: Solar Investment Opportunities” report.
The study highlights a significant gap: in 2022, Oman generated 96% (38 TWh) of its power from natural gas, while solar energy accounted for just 3.8% (1.5 TWh). This dependency persists even as the country faces rising electricity demand driven by population growth, the expansion of energy-intensive industries, and ongoing infrastructure development.
“There are no limits to Oman’s potential solar progress, as a country home to vast natural resources,” said Katherine Poseidon, Head of Strategy, Analytics & Process at Voltalia and Chair of SolarPower Europe’s Global Markets Workstream. “This report aims to contribute significantly to the nation’s solar journey as its regulatory and legislative framework continues to evolve.”
Oman’s 2050 Net Zero Target
In its seven-year statement for 2023–2029, the Omani government set interim goals for renewable energy growth, targeting an 11% share of renewables in the electricity mix by 2025 and 30% by 2030. The nation’s ultimate goal is to achieve net-zero emissions by 2050.
“Oman has all the prerequisites to become a success story of the energy transition and solar development,” says Paolo Travaglini, Head of Area Coordination Renewables Africa, Asia, Oceania at Eni Plenitude and former Chair of SolarPower Europe’s Global Markets Workstream. “This is because of its high potential for renewable energy and a government that is very committed to leadership in the renewable energy sector and green hydrogen production.”
To meet its 2030 target, SolarPower Europe calculates that the nation will need to install at least 13 GW of solar power. For context, Oman’s utility-scale photovoltaic capacity was just 0.5 GW in 2022, primarily from the 500 MW Ibri II solar facility developed by ACWA Power, which began commercial operations in August 2021.
Upcoming Solar Projects
The report also highlights upcoming projects, such as the Manah I and Manah II solar facilities, which are expected to add a combined 1 GW in the first half of next year. Manah Solar I was awarded to the Korean Western Power Company through a public tender, while Manah II was allocated to a joint venture between China’s Jinko Power Technology and Singapore’s Sembcorp Industries.
In January 2024, Oman held a public bidding for Ibri Solar III, a 500 MW solar project scheduled to begin commercial operations in the fourth quarter of 2026.
According to Benjamin Clarke, Global Markets Manager at SolarPower Europe, “Oman has the potential to become a solar powerhouse. When it comes to moving away from fossil fuels, the nation is headed in the right path. We hope to use this research as a roadmap to help the nation invest more in renewable energy sources and realise its full solar potential.”
“Oman has a rare chance to demonstrate to the rest of the world how to transition from being an oil and gas power to a solar one. The nation can take advantage of this chance to ensure economic development and jobs in its net-zero future with the correct market structure, grid infrastructure, and investment,” said Sonia Dunlop, CEO of the Global Solar Council.
