Why Oman needs a new energy architecture: Report

MUSCAT: Oman’s next phase of growth will hinge not just on how much energy it produces, but on how effectively that energy is delivered and aligned with economic activity. Industry experts Jasim Alyamani, a strategic tech executive and Dr Abdullah al Abri, Vice President of Sustainability at SOHAR Port and Freezone, argue that this requires a shift away from traditional energy planning towards a more flexible, location-specific “energy architecture”.
Writing in The Majan Council newsletter, the authors note that Oman’s energy system has evolved significantly over time. Early efforts were largely supply-driven, focused on expanding generation, transmission and fuel availability. This later matured into a more balanced national model that integrated supply and demand through forecasting and coordinated planning. While effective thus far, they stress that this approach is no longer sufficient for a more complex and diversified economy.
As Oman expands into advanced manufacturing, logistics and cleaner industries, energy demand is becoming more concentrated and variable. Nowhere is this more visible than in industrial clusters such as SOHAR Port and Freezone and Salalah Port and Freezone, where large-scale industry, port operations and logistics activity are tightly integrated. These environments place specific and often time-sensitive demands on energy systems that broad national planning alone cannot address.
In response, the authors propose the development of “local energy hubs” — integrated systems designed around the needs of specific locations. Rather than treating major industrial zones as passive consumers of centrally supplied power, this model positions them as active managers of energy flows.
In practice, that means coordinating electricity, fuels, storage and utilities in ways that reflect the operational profile of each site. For example, SOHAR Port and Freezone, with its heavy industrial base, may prioritise firm baseload power and process heat. By contrast, Salalah Port and Freezone, a major logistics and transshipment hub, may place greater emphasis on flexibility, efficiency, and reliability.
A key advantage of this approach is its scalability, according to the authors. Hubs do not need to be built as large, complex systems from the outset. They can begin with core electricity supply — including grid power, renewables, and storage — and expand over time to incorporate additional elements such as gas, thermal systems, or hydrogen, as demand evolves.
Beyond efficiency gains, the model also opens up wider opportunities. By treating energy hubs as platforms rather than standalone projects, Oman can use them to build capabilities in areas such as software, data analytics and systems integration. Industrial zones like SOHAR Port and Freezone and Salalah Port and Freezone can serve as practical testbeds where energy and digital systems are developed together and refined over time.
The authors also stress the importance of combining local expertise with international know-how to accelerate progress and ensure knowledge transfer into the domestic ecosystem.
Ultimately, while national energy systems will remain essential for security and scale, future competitiveness will be shaped at the local level. Designing energy systems around key growth centres, rather than relying solely on centralised supply, will be critical to supporting Oman’s economic ambitions in the years ahead, they emphasise.