Oman signs major renewables power deal to curb gas reliance

• Combines solar, wind and battery storage
• Part of Continuous Renewable Energy Project
• Plan to cut greenhouse gas emissions by 33%

Oman has signed a major contract for a non-stop renewable energy project that combines wind, solar and battery storage, as it accelerates efforts to reduce its reliance on gas.

Nama Power and Water Procurement, the sole purchaser of electricity from independent power plants in Oman, has awarded a power purchase agreement to state-backed O-Green, which designs, builds and runs energy plants.

Solar and wind power on their own can often be intermittent, but combining them with battery technology means the project can continuously produce electricity for Oman’s grid.

The scheme is part of a wider 2.7 gigawatt (GW) hybrid renewable energy development spanning the Mahout and Duqm areas on Oman’s coast.

It is the latest in a flurry of renewable energy projects launched since 2020.

Renewable energy accounted for 9.5 percent of Oman’s electricity production by the end of 2025, up from about 2 percent in 2021, according to the Authority for Public Services Regulation.

“Yesterday, the first of two round-the-clock renewable energy plants was signed,” Salim Al Aufi, Oman’s minister of energy and metals, said in a speech at the Oman Petroleum and Energy Show on Monday.

“This achievement reflects the accelerating pace of our efforts to diversify the national energy mix.”

The Continuous Renewable Energy Project is intended to help Oman reduce dependence on gas-fired electricity generation while supporting future industrial growth in Duqm, a logistics and industrial centre at the heart of the country’s hydrogen ambitions.

Oman also recently inaugurated the Manah 1 and Manah 2 solar projects, which have a combined generation capacity of 1GW. Earlier projects included the 500 megawatt Ibri II solar plant and the Dhofar Wind Farm, Oman’s first commercial wind energy development.

• Oman seeks consultants for green hydrogen power plant
• Oman set to finalise 2GW green projects
• Oman: the next hydrogen energy superpower

The latest announcement comes days after the government unveiled an updated national net-zero strategy, which included a new target to reduce greenhouse gas emissions by 33 percent by 2035 compared with 2024 levels.

The overhaul also places greater emphasis on carbon markets and green hydrogen, with the government introducing a regulatory framework intended to help generate tradable carbon credits and attract climate-linked investment.

Despite the clean-energy push, the minister defended the role of fossil fuels in the global economy amid heightened concerns over energy security following the Iran war.

“The oil and gas sector is not merely a production sector, but rather the backbone of the global economy and one of the principal pillars of economic and social stability for countries and societies,” he said.