Oil-Rich Oman Bets Big on Renewable Energy

by | Sep 6, 2026 | Energy

Oil-Rich Oman Bets Big on Renewable Energy

Oman has introduced comprehensive policies to expand its renewable energy sector as part of a broader energy diversification strategy. This year, the government’s Ministry of Energy and Minerals launched a revised net-zero emissions strategy and established a carbon markets regulatory framework targeting net-zero carbon emissions by mid-century. The Oman Centre for Net Zero will oversee implementation and track progress on emissions reduction targets. Government officials, including Energy Minister Salim Al Aufi, characterized the initiative as a strategic pathway toward a sustainable, low-carbon economy aligned with the nation’s long-term development vision.

The renewable energy expansion is expected to generate economic and climate benefits while supporting job creation and economic diversification. The government aims to reduce carbon emissions by 33 percent by 2035 through energy diversification, carbon capture and storage development, and adaptation projects across seven key sectors. Despite these climate goals, Oman intends to continue developing its oil and gas industries, maintaining current production levels while adding renewable capacity.

Oman has made substantial progress in renewable energy development over the past decade. Recent projects include solar installations totaling over 2 GW that came online in January 2025, with additional solar and wind projects in development. The Ibri II solar expansion is scheduled for completion in 2027 with battery storage capabilities. Looking ahead, the government plans to add approximately 5.7 GW of solar capacity, over 2 GW of wind power, and 1 GW of battery storage by the end of the decade.

The nation is also pursuing pumped hydro storage and green hydrogen development. The Wadi Dhayka Hydro Pump project, led by an EDF consortium, will provide nearly 2 GW of capacity with substantial energy storage. Oman targets development of seven green hydrogen projects with combined annual output of 1 million tonnes by 2030, though some international partnerships have withdrawn from the initiative. These investments position Oman as an emerging renewable and green energy hub in the Middle East region.

Article Attribution | Read More at Article Source

Article summary produced by Claude AI