Oman Enhances RE Adoption with Self-Generation and Direct Sale Initiative

The Ministry of Energy and Minerals has introduced the 'Renewable Energy Utilisation Policy for Self-Generation and Direct Sale', a significant step toward liberalising Oman’s electricity market and increasing the share of renewable energy in power generation.

The policy establishes a structured framework for self-generation and direct sale of electricity, aiming to promote sustainable energy development, attract investments in clean energy, and create a balance between private sector participation and consumer benefits while ensuring the stability of the national grid.

Under this new framework, businesses and individuals can generate electricity from renewable sources for their own consumption. Self-generating entities must obtain licenses from the Public Services Regulation Authority (PSRA), except for small-scale projects that fall below a specified capacity and are exempt from direct coordination with the Ministry of Energy and Minerals. To regulate self-generation and ensure it does not disrupt national grid operations, an annual cap on self-generated electricity will be implemented in collaboration with the PSRA.

The policy also facilitates the direct sale of electricity from renewable sources by qualified producers to eligible consumers without routing transactions through the Oman Power and Water Procurement Company (OPWP). These transactions must adhere to the regulatory framework set by the PSRA, with an annual cap on direct sale production determined in coordination with relevant authorities. This measure ensures that private sector participation in electricity sales grows in a controlled manner while maintaining overall energy sector stability.

Electricity generated for direct sale can be transmitted through the national grid, which is managed by licensed transmission and distribution companies. This process must comply with PSRA-issued guidelines, ensuring that renewable energy integration aligns with national energy targets. Consumers opting for direct purchase are required to cover the costs of electricity transmission and pay tariffs set by the PSRA, ensuring the grid remains efficient and financially sustainable.

Mohsen bin Hamad Al-Hadhrami, Undersecretary of the Ministry of Energy and Minerals, described the policy as a landmark initiative in Oman’s energy transition. He emphasised its role in promoting sustainable energy practices, enhancing renewable energy infrastructure, and creating an investment-friendly environment that balances economic growth with environmental priorities.

The policy aligns with Oman’s broader energy and net-zero goals, targeting 90 percent to 100 percent of electricity generation from renewable sources by 2050. By encouraging self-generation and private-sector participation, the initiative aims to enhance energy efficiency, diversify Oman’s energy mix, and significantly reduce carbon emissions.

Oman is taking decisive steps toward a decentralised, modern, and sustainable energy future, ensuring long-term energy security and environmental responsibility.