Global renewable surge sharpens Oman’s energy opportunity

Renewable power capacity additions reached record levels in 2025, but rising electricity demand and continued reliance on fossil fuels show how much work remains to change the global energy mix. For Oman, the findings in the International Energy Agency’s Global Energy Review 2026 offer a timely perspective as the Sultanate works to increase renewable generation and strengthen energy security. Published in April, the report reviews global energy trends during 2025.
The IEA found that global energy demand grew by 1.3 per cent in 2025, while electricity demand rose by around 3 per cent. Solar photovoltaic power made the largest contribution to growth in global energy demand, meeting more than a quarter of the increase. Low-emissions sources, including solar, wind, nuclear and hydropower, together supplied nearly 60 per cent of demand growth.
Solar also set a new record in electricity generation, adding 600 terawatt-hours over the year. That increase alone met around 70 per cent of the growth in global electricity generation. Renewable capacity additions reached 800 gigawatts, with solar accounting for three quarters. Annual battery storage additions rose by around 40 per cent, reaching almost 110 gigawatts.
The shift did not mean fossil fuels had disappeared from the system. Oil, gas and coal demand all grew, although more slowly than in 2024. Fossil fuels still produced more than half of global electricity. The report also found that renewables and nuclear together generated more than the entire increase in electricity supply, while fossil-fuel generation fell slightly. Global energy-related emissions continued to rise, though more slowly than in 2024.
Oman’s renewable share is growing. The Ministry of Energy and Minerals said grid-connected renewable sources contributed 9.46 per cent of electricity in 2025, up from 4.26 per cent in 2024. Oman aims to raise renewables’ share of its electricity mix to 30–40 per cent by 2030. Reaching that goal will require more renewable generation and the infrastructure needed to connect it and manage changes in supply.
The ministry lists projects planned for implementation by 2030 with expected capacity of about 5,080 megawatts of solar and 1,720 megawatts of wind. It also says an Ibri solar project under development is expected to include 100 megawatt-hours of battery storage. The storage is intended to support grid flexibility as renewable capacity grows.
The global review highlights why that flexibility matters. Solar generation is growing rapidly, but its output varies with sunlight and does not always match when electricity demand is highest. Storage can help shift some of that power to other hours. Nama Power and Water Procurement’s planning work includes assessing storage options for Oman’s power system through 2040.
For Oman, the opportunity lies in turning its solar and wind resources into dependable power while expanding the grid and storage needed to support them. The IEA’s review shows that renewable growth can reshape electricity supply, but it also points to the challenge of meeting rising demand while cutting emissions. Oman’s progress towards its 2030 target will depend on how quickly planned capacity moves into operation and becomes part of a reliable national electricity system.