Meeting held to advance renewable energy initiatives and collaboration in the GCC

MUSCAT: Oman's Ministry of Energy and Minerals recently chaired the 11th meeting of the Renewable and New Energy Committee, in cooperation with the General Secretariat of the GCC, represented by the Energy Department, marking a significant step towards advancing renewable energy initiatives in the country and in the region. The committee, comprising representatives from the government and relevant stakeholders, convened to discuss various topics related to renewable energy, including localisation, storage, and energy transition plans.

During the meeting, a presentation was made on the progress of electricity sector in the GCC. In terms of regional collaboration, it highlighted the involvement of TSO (Transmission System Operator) entities from Saudi Arabia, Oman, and the United Arab Emirates (UAE). These TSO entities play a crucial role in facilitating the integration and transmission of renewable energy across the region. Additionally, the meeting shed light on the concept of vertical integration with Independent Power Producers (IPPs) for power generation, which is being adopted by all GCC member states.

For the distribution of renewable energy, Oman and the UAE were identified as the key countries involved in implementing effective distribution networks. These networks are essential for efficiently delivering renewable energy to end-users and consumers. Furthermore, the meeting recognised the importance of a procurement model, specifically the single buyer model, which is being adopted by Saudi Arabia, Oman, and the UAE. This model streamlines the procurement process and ensures a unified approach to sourcing renewable energy.

While the single buyer model is being implemented in multiple countries, Oman stands out as the only member state in the GCC with a spot market system in place. The spot market allows for the real-time trading of electricity, providing flexibility and enabling market participants to respond to supply and demand dynamics.

The meeting also emphasised the role of regulators in overseeing and governing the power sector. In Saudi Arabia, Oman, and the UAE, regulators have been established to ensure fair competition, transparency, and the implementation of appropriate policies and regulations. These regulators play a vital role in fostering a conducive environment for the development of renewable energy projects and the overall transformation of the power sector.

The ongoing task of reforming the power sector was acknowledged as a shared responsibility among all member states. While some countries still rely on their government's electricity ministries to carry out all functions related to electricity, others have established government owned companies to manage and oversee the sector. These reforms aim to enhance efficiency, encourage private sector participation, and promote the integration of renewable energy into the power systems of member states.