Standard Report: Oman PV Market Study (2024)
This report delves into Oman's evolving solar energy market, providing comprehensive qualitative and quantitative insights, key market trends, regulatory frameworks, and other critical factors influencing the sector’s growth.
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About This Report
This report will explore the current landscape of Oman’s solar energy market, including qualitative and quantitative insights, market trends, relevant regulations and policies, and other key factors affecting the industry.
Oman Solar Photovoltaic (PV) Market Size
The Omani solar photovoltaic market is set for robust expansion, with installed capacity expected to surge from around XXX MW in 2023 to exceed XX,XXX MW by 2030. This growth trajectory signals a projected compound annual growth rate (CAGR) of XX% over the 2024–2030 forecast period, underscoring Oman’s proactive approach toward clean energy.
Guided by Vision 2040, Oman seeks to increase renewable energy’s share in its energy mix, moving away from its dependency on oil. Key drivers of this growth include supportive policies, declining solar PV module costs, and rising investment interest. In particular, Oman’s commitment to green hydrogen aligns with its ambition to establish a global leadership position in renewable energy. As Oman moves forward, the country’s efforts in R&D and innovation in renewable technology will play a crucial role in the solar PV sector’s accelerated growth.
Despite this optimism, the market faces challenges like high initial capital investments, an evolving regulatory landscape, and infrastructure limitations. Yet, Oman’s abundant solar resources, targeted government incentives, and a promising pipeline of utility-scale projects present considerable growth opportunities, especially within the commercial and industrial (C&I) segments.
Oman Solar Photovoltaic (PV) Market Trends
1. Utility-Scale Projects
Oman has prioritized utility-scale solar projects to drive large-scale renewable energy generation, with landmark projects leading the way:
- Ibri Solar Power Plant: As the largest operational solar project with a capacity of 575 MW, Ibri sets the benchmark for utility-scale solar in Oman and is central to the country’s Vision 2040 objectives.
- Manah 1 and 2 Projects: Under construction and scheduled for commercial operation in 2025, these projects will contribute a combined capacity of 1,000 MW. This project aligns directly with Oman’s Vision 2040 and serves as a blueprint for future private-sector partnerships.
These projects underscore Oman’s commitment to diversifying its energy sources through substantial renewable energy infrastructure.
2. Commercial and Industrial (C&I) Sector
The C&I sector in Oman is increasingly adopting solar PV technologies to reduce operational costs and support sustainability. Key trends in this sector include:
- Rooftop Solar Installations: Rooftop solar systems are gaining traction as businesses capitalize on economic and environmental benefits. By feeding excess energy back to the grid, companies benefit from lower energy costs.
- Hybrid Solar-Diesel Systems: To mitigate fuel costs and carbon emissions, some businesses are integrating solar PV with diesel generators. While this approach improves sustainability, the cost advantage of diesel hinders the broader adoption of hybrids.
- Solar Carports and Shaded Parking: Solar carports serve dual purposes, providing shade and generating electricity. They are gaining popularity in commercial and industrial facilities, particularly in high-temperature areas where shading is highly valued.
3. Government Policies Supporting Solar Energy Growth
Oman’s regulatory landscape is conducive to solar energy growth, supported by several key initiatives and policies:
- Vision 2040: Oman’s long-term energy vision emphasizes a transition to renewable energy sources, with ambitious goals to diversify its energy mix and foster a sustainable economy.
- Sahim Initiative: This net metering initiative empowers residential and commercial consumers to offset electricity costs by exporting surplus solar energy to the grid, making rooftop PV systems more financially attractive.
- Public-Private Partnership (PPP) Frameworks: Oman has embraced PPP models, opening the door for private-sector investments in renewable projects. This approach not only attracts expertise but also mobilizes resources for scaling up the solar PV infrastructure.
- Build-Own-Operate (BOO) Agreements: Utility-scale projects like the Ibri 2 Solar Project utilize BOO models, encouraging private sector participation and providing the security necessary to drive long-term solar investments.
4. Potential for Energy Storage Solutions in Oman
As Oman scales up its solar PV infrastructure, the need for energy storage solutions becomes increasingly crucial. Large-scale storage systems can stabilize the grid and allow efficient management of surplus solar energy. For utility-scale projects, such as the Ibri Power Plant, energy storage is key to optimizing grid reliability and balancing energy supply.
However, in the residential segment, energy storage adoption is limited due to relatively low rooftop solar penetration. For now, utility-scale storage remains the primary focus, aligning with Oman’s large-scale project pipeline and broader energy strategy.
Table Of Contents
- Introduction
- Solar Energy Projects’ Ownership
- Solar PV Initiatives and Programs
- Government Regulations and Policies
- Electricity Tariff
- Electricity Demand and Consumption by Sector
- Electricity Production by Type
- Solar PV Installed Capacity
- Major Upcoming Solar PV Projects
- Solar PV Market Forecasting
- Introduction
- Green Hydrogen Vision
- Green Hydrogen Initiatives and Programs
- Green Hydrogen policies
- Project Spotlight
- Green Hydrogen forecasting
Scope Of The Report
This report segments Oman’s solar PV market by deployment type, providing market sizing and forecasts based on installed capacity (MW). The analysis covers utility-scale, commercial, and distributed generation sectors.
Frequently Asked Questions
The industry stands at an estimated XX GW as of 2023, predominantly in utility-scale projects. The sector is on track to achieve substantial growth, driven by robust government initiatives and the involvement of key players in both public and private sectors.
- Sahim Initiative: Encourages rooftop solar adoption via net metering, allowing users to offset electricity costs.
- Public-Private Partnership Law: Facilitates private investment with transparent regulatory guidelines, crucial for driving solar capacity expansion.
- Build-Own-Operate (BOO) Models: Ensures private sector engagement in large-scale renewable energy, providing attractive investment opportunities for solar developers.
Energy storage is becoming integral to Oman’s solar strategy, particularly at the utility-scale. As more large projects come online, storage solutions will play a vital role in ensuring grid stability and energy efficiency.
Oman’s solar PV industry faces several challenges:
- Regulatory Disparities Across Sectors: Differences in regulation affect distributed generation, presenting a barrier to the adoption of solar PV in smaller market segments.
- Diesel Affordability in the C&I Sector: The low cost of diesel hinders the widespread adoption of hybrid systems in commercial and industrial applications. Until stricter emission policies make diesel less attractive or energy storage becomes more affordable, these sectors may rely on traditional diesel solutions.
- Expansion of solar-powered desalination and agricultural irrigation systems, particularly in rural areas.
- Rising interest in rooftop solar PV in urban regions, supported by government incentives and cost-saving benefits.
