Oman’s smart city ambitions to drive 6.7 GW power demand: OETC

MUSCAT: Oman’s ambitious pipeline of smart cities and urban development projects is expected to create demand for around 6.7 gigawatts (GW) of additional power generation capacity over the long term, requiring major expansion and modernisation of the Sultanate of Oman’s electricity transmission infrastructure, according to Oman Electricity Transmission Company (OETC).
The majority state-owned grid operator said it is laying the foundation to integrate a portfolio of strategic urban developments — currently at various stages of planning and implementation and backed by the Ministry of Housing and Urban Planning — into its long-term grid development plans.
“OETC plays a vital role in integrating these smart cities into a reliable, efficient and future-ready power grid”, the company stated in its 5-Year Annual Transmission Capability Strategy 2026-2030.
The integration plans will focus on strengthening transmission networks to accommodate renewable energy sources, including solar and wind projects, enabling decentralised power generation, developing electric vehicle (EV) charging infrastructure and enhancing grid capacity through new transmission lines and reactive power compensation systems.
OETC said the planned developments will require a new generation of smart grid solutions capable of supporting growing electricity demand while maintaining reliability and efficiency.
Among the largest contributors to future electricity demand is the Greater Muscat Structure Plan, which is expected to require more than 5 GW of power capacity by 2040. The ambitious urban framework aims to transform the capital region into a smart, resilient metropolis supported by renewable energy integration, artificial intelligence-enabled urban services and advanced transport networks.
The Sultan Haitham City, Oman’s first fully integrated smart city development, is projected to require around 105 MW by 2040. The project is being developed around principles of sustainability, including net-zero buildings, digital infrastructure, green spaces and electric mobility solutions.
Other major urban plans identified by OETC include:
•Greater Salalah Structure Plan — A future regional trade and tourism hub incorporating green infrastructure and wind energy integration, with projected electricity demand exceeding 200 MW by 2040.
•Greater Nizwa Structure Plan — A sustainable expansion of the historic city focusing on eco-tourism, improved water management and modern urban services, with estimated demand exceeding 400 MW by 2040.
•Ibri Structure Plan: A logistics and renewable energy-focused development supporting the growth of solar power initiatives, requiring more than 350 MW by 2040.
•New City in Suhar: A smart industrial and residential city supporting Suhar’s role as a regional logistics and trade centre, with projected demand exceeding 240 MW by 2040.
•Al Khuwair Downtown: A transit-oriented urban regeneration project in Muscat featuring mixed-use development, smart mobility and economic anchors, with expected demand of around 400 MW by 2040.
OETC is also preparing to support other planned developments, including the Sur Structure Plan, which will guide sustainable coastal urban growth; Al Jabal Al Aali, a high-altitude mountain city concept designed around net-zero principles for energy, water, food and waste; A’Thuraya City, a premium environmentally conscious urban development in Muscat; and the Al Rustaq Structure Plan, which provides a long-term development framework extending to 2045.