Monday 27 / January / 2025
Muscat: The Ministry of Energy and Minerals has introduced the "Policy for the Use of Renewable Energy for Self-Generation and Direct Sale," a key initiative aimed at advancing the liberalisation of Oman’s electricity market, boosting the use of renewable energy in power generation, and regulating self-generation and direct sale activities.
This policy is part of Oman’s vision to promote sustainable development, attract investment in clean energy, and support the growth of the renewable energy sector, while ensuring a balance between the interests of investors and consumers.
Self-Generation Policy
The policy governs the process of self-generating electricity from renewable sources to meet consumer demand. Licences must be obtained from the Public Services Regulation Authority (PSRA), although small-scale projects below a certain capacity are exempt from direct coordination with the Ministry of Energy and Minerals. To ensure equilibrium between self-production and national grid requirements, an annual cap on electricity production through self-generation will be established in collaboration with the PSRA.
Direct Sale Policy
This aspect of the policy regulates the direct sale of electricity generated from renewable sources by qualified producers to eligible consumers, bypassing the Oman Power and Water Procurement Company. Such transactions must adhere to the regulatory framework issued by the PSRA, with an annual cap on production eligible for direct sale set in coordination with relevant authorities.
Electricity Transmission Policy
Under the policy, electricity generated for direct sale may be transmitted through the national grid, which is managed by licensed transmission and distribution companies, in compliance with guidelines issued by the PSRA. The energy produced must meet annual ratios determined in consultation with relevant authorities to ensure the expansion of renewable energy usage. Eligible consumers are required to cover the costs of electricity transmission and pay tariffs as determined by the PSRA, ensuring the national grid's stability and efficiency.
His Excellency Mohsen bin Hamad Al-Hadhrami, Undersecretary of the Ministry of Energy and Minerals, described the new policy as a significant step forward in the development of Oman’s energy sector. He highlighted its role in enabling innovative and sustainable use of renewable energy, supporting infrastructure development, and creating a favourable investment environment that balances economic and environmental priorities.
He further noted that the policy aligns with Oman’s energy and net-zero goals, targeting 90% to 100% of electricity production from renewable sources by 2050. It aims to enhance energy efficiency, diversify energy sources, and reduce carbon emissions, thereby contributing to the country’s long-term sustainability.
His Excellency emphasised the collaborative approach between the government, private sector, and citizens in advancing renewable energy production, underlining the importance of this sector in achieving Oman’s environmental and economic aspirations.
