The role of hydropower in Oman’s energy transition

Renewable energy in the Gulf has been shaped largely by solar, driven by abundant sunlight and falling technology costs. As renewable penetration rises, however, attention is shifting from installed capacity to system resilience. In this evolving context, water-based renewable energy, including hydropower, pumped storage and marine technologies, is re-emerging as a strategic complement to solar-led growth.
Globally, hydropower remains the largest source of renewable electricity, supplying around 14 per cent of total power generation and exceeding 1.25 terawatts of installed capacity. While annual additions lag behind solar and wind, hydropower’s value lies in its ability to deliver dispatchable power, long operational lifetimes and grid stability.
That role is becoming increasingly important as electricity systems integrate higher shares of variable renewables. Solar and wind output fluctuates with weather and time of day, placing pressure on grids designed around fossil-fuel baseload generation. Pumped storage hydropower addresses this challenge by storing surplus electricity and releasing it during peak demand. It accounts for more than 90 per cent of global long-duration energy storage capacity, making it the most established grid-scale storage technology worldwide.
In the Gulf, limited river systems restrict conventional hydropower development, but water-energy innovation remains viable. Rapid solar deployment, expanding coastal infrastructure and growing demand for storage are driving interest in pumped storage and hybrid water-energy systems. Rather than competing with solar, these solutions enhance grid flexibility as renewable shares increase beyond 2030.
Oman occupies a distinctive position within this regional shift. While the Sultanate of Oman lacks major rivers suitable for large hydropower plants, it has significant water infrastructure, varied terrain and one of the longest coastlines in the Arabian Peninsula. Assets such as Wadi Dayqah Dam are primarily designed for flood control and water supply, yet they also illustrate the potential for multipurpose infrastructure that could support future energy integration as technologies mature.
Marine energy represents another area of emerging interest. Studies indicate that the Arabian Sea offers more consistent wave conditions than the calmer Arabian Gulf, placing Oman among the region’s stronger candidates for wave and tidal energy research. Although these technologies remain at an early stage globally, pilot projects in Europe, East Asia and Australia show gradual gains in efficiency and durability.
For Oman, marine energy aligns more closely with innovation and long-term diversification than near-term large-scale deployment.
Water-based renewables also intersect with the Gulf’s desalination challenge. The region accounts for a significant share of global desalinated water production, much of it powered by natural gas. As decarbonisation targets tighten, integrating renewables into desalination systems is gaining urgency. Hybrid models that link renewable generation, storage and water infrastructure offer pathways to cut emissions while strengthening water and energy security.
Strategically, Gulf states are increasingly viewing renewable energy as long-term infrastructure rather than rapid capacity expansion alone. Hydropower and water-based systems are capital-intensive but offer reliability, longevity and local value creation through engineering and operations. Their contribution is measured less in headline megawatts and more in system stability.
Climate change, however, is reshaping how water-based energy is assessed. Droughts in several regions have exposed hydropower’s sensitivity to shifting rainfall patterns, underscoring the importance of diversified energy portfolios. For arid regions such as the Gulf, this reinforces the case for smaller, integrated and digitally managed water-energy solutions rather than large-scale river dependence.
For Oman, water-based renewable energy will not replace solar or wind. Instead, it serves as a complementary pillar that supports grid stability, enables innovation and strengthens the water-energy nexus critical to long-term resilience.
As the region’s energy transition matures, the focus is moving from capacity targets to system design and in that transition, water may yet prove to be part of the solution.