Oman’s energy mix is currently dominated by natural gas, which powers nearly all of its electricity generation. However, the country is rapidly transitioning toward renewables to meet its Vision 2040 sustainability goals and diversify its economy away from hydrocarbon dependence.
As of early 2025, reports indicate that renewables have climbed to represent approximately 11.5% of Oman’s power mix.
- Natural Gas (~88-93%): The primary fuel for power plants and industrial use.
- Solar (~10%): The largest contributor to the renewable sector, driven by major projects like the Ibri II Solar IPP (500 MW).
- Oil (<2%): Used minimally for electricity, primarily in remote areas or as a backup fuel.
- Wind (<1%): Currently represented by a single large-scale wind farm in Dhofar (50 MW), though more are in the pipeline.
Major Growth Sectors
- Green Hydrogen: Oman aims to become a global leader, targeting 1 million tonnes of green hydrogen production annually by 2030. The government established Hydrogen Oman (HYDROM) to manage this sector.
- Solar Expansion: Multiple 1,000 MW Solar IPP projects are planned for 2029–2031 to dramatically scale capacity.
- Waste-to-Energy: The 95 MW Barka Waste-to-Energy project is scheduled for 2031 to further diversify the mix.
- Grid Modernization: The North-South Interconnect (400 kV) is being built to link regional systems into a unified national grid by late 2026, improving the stability of variable renewable energy.
Oman is positioning itself as a global leader in the green hydrogen economy, with a target to produce 1 million tons (Mt) per year by 2030 and up to 8.5 Mt per year by 2050. As of February 2026, the country has awarded land to several multi-billion-dollar projects, primarily concentrated in the Duqm and Salalah regions, to leverage its abundant solar and wind resources.
Key Active Projects
While two original projects (led by BP and a Posco-Engie consortium) were recently dropped due to market reassessment in late 2025, seven major projects remain on track.
| Project | Location | Capacity (Target) | Partners |
|---|---|---|---|
| ACME Duqm | Duqm | 497 ktpa (Phase 2) | ACME Group (India) |
| Amnah Consortium | Duqm | 200 ktpa | Copenhagen Infrastructure Partners |
| HyPort Duqm | Duqm | 60 ktpa (Phase 1) | OQ, DEME, Uniper |
| Green Energy Oman (GEO) | Al Wusta | 1.8 million tonnes | Shell, OQ, InterContinental Energy |
| EDF/J-POWER/Yamna | Salalah | 178 ktpa | EDF Renewables, J-POWER |
White hydrogen has been discovered in Oman.