MUSCAT: Oman Electricity Transmission Company (OETC), the sole owner and operator of the country’s national grid, is placing battery energy storage systems (BESS) at the centre of its long-term strategy, Fitch Ratings announced on Friday.
According to the international ratings agency, of OETC’s expanded 2026–2030 capex programme of RO 1.285 billion, around RO 376 million — nearly a third of total investment — is earmarked specifically for BESS projects.
“OETC views BESS as a strategic project that should support renewables penetration and enhance system reliability, in line with the Oman Vision 2040,” said Fitch. “The Authority for Public Service Regulation (APSR) has approved much quicker asset recovery terms for OETC's battery projects, at 10 years of asset life instead of the typical 35 years. BESS is the main driver of Fitch-forecast revenue growth at an average 24 per cent a year in 2026-2027.”
Fitch also announced an upgrade of OETC’s Long-Term Foreign - and Local-Currency Issuer Default Ratings (IDRs) to 'BBB-' from 'BB+', with stable outlooks. Additionally, Fitch upgraded OETC's senior unsecured rating to 'BBB-' from 'BB+'.
According to market experts, the prioritisation of battery energy storage signals a broader evolution in OETC’s operational model — from a traditional “wires-only” transmission utility to one that incorporates system flexibility as a key function. By embedding BESS into its grid, OETC is effectively adding a new layer of capability that enables energy balancing across time, not just geography. This is particularly critical as Oman accelerates the deployment of solar and wind capacity and strengthens long-distance interconnections such as the North–South grid link, both of which introduce variability and stability challenges that batteries are well suited to address.
Publicly-traded OETC, which is 51 per cent-owned by Nama Holding – part of part of Oman Investment Authority – is a pivotal player in the country’s energy transition. “Fitch expects OETC to play an important role in the Oman Vision 2040, supporting Oman's renewable energy objectives and providing the infrastructure to facilitate a competitive business environment,” the rating agency noted.
At the recent annual media briefing hosted by the Authority for Public Services Regulation (APSR), officials listed battery energy storage, alongside renewable energy generation and demand response management, as strategic initiatives prioritised by the regulator for implementation over the 11th Five Year Plan (2026-2030).
The goal is to use advanced batteries to store excess electricity — particularly from renewable sources — during periods of low demand, and discharge it back into the grid during peak periods, improving load management and overall grid stability.
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