ABSTRACT

Title: Oman: A Search for the Renewable Energy Source

Abstract
Sultanate of Oman is not very rich in hydrocarbon reserves unlike other GCC nations. Its fast
growing economy in last decades has created a huge demand for the electricity and the
electricity sector in Oman is primarily based on fossil fuel; 97.5% of the installed electricity
capacity is fuelled by natural gas and the remaining 2.5% by diesel (IRENA: 2014). Domestic
needs regularly outstrip production. As a result, the government is forced to import billions of
cubic meters of gas from Qatar to cover a national deficit. This paper is an attempt to discuss
the efforts and challenges of Oman’s renewable energy source search.

According to Oman Power and Water Procurement Co. report of 2016, the demand for
electricity in Oman is expected to grow by 8% per year, from 5565 MW in 2015 to 9529 MW
in 2022 (OPWP:2016,pg-5). As countries fossil fuel reserves are fast depleting the country is
in need of diversifying the source of power generation. Oman has initiated the step toward the
renewable energy in 2008 with the study on Renewable energy resources in Oman by
Authority of the Electricity Regulation, Oman. The commission identified solar and wind
power as major potential for electricity generation, it also recommended the implementation
of pilot projects and a feasibility study for electrical production using solar energy of 100–
200 MW.

The study shows that Oman has some of the best solar potential in the world. It receives, on
average, 18 to 20 per cent more solar kilowatt-hours per square meter than other GCC
nations. The growth of large-scale solar projects in recent years is a promising sign that
Oman is working on renewable energy sources to increase solar-powered electricity
generation.

The study also shows that wind energy offers strong potential. Particularly good wind
resources in the southern and eastern parts of the country. Studies show that 375 mega-watt
wind turbine installations in Qairoon Haititi and Thumrait (two proposed locations in
southern Oman) could produce 2.3 terra-watt hours of electricity per year alone, equating to
roughly 16 per cent of Oman’s electricity needs.

While examining the deployment of renewable energy in Oman, the growth is very slow
paced as government has no clear plan for the future energy and it lacks clear cut strategy and
targets. There is also lack of coordination and consistence policy regarding the RE
deployment as very slow progress has been made since the study was done in 2008.
Moreover, government provided subsidy for fossil fuel also hampers the support for RE as
renewable energy has to compete with the low electricity prices. Lastly, there is an
inadequate investment in the technical research in RE in government budget. All these
barriers are making the RE efforts slow, despite of the fact that country has limited fossil fuel
reserve and electricity generation consumes a huge amount of its fossil fuel resources.

Keywords: Renewable Energy, Solar energy, Wind energy, electricity, fossil fuel.