Oman targets renewables share of 60-70% by 2040

MUSCAT: Oman witnessed the implementation of several strategic projects, spanning renewable energy and green hydrogen in 2025, alongside the expansion of electricity projects and related infrastructure. A number of initiatives and agreements were also launched and advanced across the hydrogen and renewable energy sectors, in addition to the establishment of export corridors to global markets.

According to officials of the Ministry of Energy and Minerals, policies and strategies were introduced targeting at least 10% of energy production from renewable sources by the end of the year, while setting a clear roadmap for the transition towards sustainable energy. The roadmap aims to increase the share of renewable energy to between 60% and 70% by 2040, reaching between 90% and 100% by 2050.

As part of the net zero pathway, the Ministry continues to implement ambitious initiatives aimed at reducing emissions and enhancing energy efficiency. At the end of 2024, the Oman Net Zero Center was inaugurated, alongside the adoption of policies supporting the energy transition and the launch of the national energy efficiency program “Kafa’a” in cooperation with the Ministry of Labour and Sultan Qaboos University, with the objective of qualifying Omani talent in the field of energy auditing.

The program represents one of the national pillars for improving energy consumption efficiency across various sectors through the development of policies and standards, enhancing the efficiency of appliances and buildings, promoting optimal energy use across industrial, commercial, and residential sectors, and raising awareness of the importance of energy conservation.

The Ministry is also continuing to adopt policies that support the energy transition in alignment with the Sultanate of Oman’s target of achieving net zero emissions by 2050.

Eng Salim Nasser al Aufi, Minister of Energy and Minerals, affirmed that the Ministry remains committed to advancing its strategic plans and strengthening local and international partnerships in a manner that reinforces Oman’s position in the energy and minerals sectors, while achieving a balance between economic growth and environmental sustainability in support of Oman Vision 2040 objectives.

Eng Hamood al Sawafi, Director General of Renewable Energy and Hydrogen, presented a visual overview of a package of strategic plans and projects in the energy and hydrogen sectors.

The plans include reviewing the structure of the electricity market in cooperation with relevant entities and activating a national energy model to assess the impact of various variables on the sector, supporting more efficient technical and financial decision-making. The initiatives also cover the implementation of the recommendations of Oman’s Energy Transition Strategy following its approval, alongside the execution of recommendations under the Integrated Energy Strategy.

In addition, awareness campaigns aimed at promoting a culture of energy transition will be launched through the introduction of the “Rushd” Energy Efficiency Award during Sustainability Week 2026, while efforts continue to develop mechanisms for meeting electricity demand within the industrial sector.

In the field of renewable energy, the Sultanate of Oman aims to increase the contribution of renewable energy to no less than 10% of total energy production by the end of 2026. Plans also include completing the design and implementation of the National Renewable Energy Database Platform, as well as allocating and preparing new sites for renewable energy projects.

The roadmap further includes developing a renewable energy certification system and launching a tender to supply the Hallaniyat Islands with renewable energy through an integrated clean energy and battery storage system, aimed at reducing reliance on conventional fuels.

In the hydrogen sector, the Sultanate of Oman achieved significant milestones during the previous two rounds of green hydrogen auctions, with investments exceeding $44 billion.

Renewable energy capacity is projected to reach 26.6 gigawatts by 2030, alongside the production of one million tons of green hydrogen annually by 2030.

Current efforts are focused on accelerating project development through the completion of the “single permit” system to streamline procedures, in addition to implementing the agreement for the development of a liquefied hydrogen trade corridor between the Sultanate of Oman and the Kingdom of the Netherlands, further strengthening Oman’s presence in global clean energy markets.

Plans also include launching an Investor Guide for the green hydrogen sector to provide a comprehensive overview of the investment environment, alongside completing the second phase of the study on hydrogen storage in natural geological formations.