In a significant move towards achieving its Net Zero goals, Oman’s Ministry of Energy and Minerals has introduced a new policy framework [1] aimed at fostering investments in energy storage. The policy, known as the “Electricity Self-Generation, Direct Sales, and Wheeling Policy,” is designed to promote the growth of integrated renewable energy capacity, including generation, transmission, and crucially, energy storage.
Energy storage has been a critical yet underdeveloped component of Oman’s clean energy infrastructure due to high upfront costs and concerns over energy efficiency. However, the new policy aims to address these challenges by enabling the deployment of economically feasible battery storage infrastructure. The policy defines electricity storage as the conversion of electrical energy into another form for storage and later reconversion for direct consumption or grid delivery.
The policy outlines two categories of developers who stand to benefit from these initiatives. The first category includes ‘Self-Generators,’ who invest in renewable energy capacity for captive consumption1. These developers are permitted to establish, own, and operate electricity storage equipment whenever economically feasible. The second category comprises developers eligible to invest in renewable energy capacity for supply to large consumers via the ‘Direct Sales’ route.
Nama Power and Water Procurement Company (PWP), the single buyer of power and water output in Oman, has been actively supporting the development of energy storage in the country. The new policy is expected to build on PWP’s efforts and contribute to achieving an ideal mix of energy resources to sustain Oman’s energy requirements over the next 15 years.
The policy also aligns with Oman’s broader vision of generating 90% to 100% of its electricity from renewable sources by 2050. This ambitious target supports the Sultanate’s commitment to reducing carbon emissions and promoting sustainable development.
Industry experts have welcomed the new policy, highlighting its potential to improve energy efficiency, diversify energy sources, and ensure grid reliability. The policy is seen as a transformative step in Oman’s energy sector, providing a comprehensive regulatory framework that supports the implementation of self-generation and direct sale projects.
Mohsen bin Hamad al Hadhrami, Under-Secretary of the Ministry of Energy and Minerals, described the policy as a “collaborative approach” involving the government, private sector, and citizens in energy production. He emphasized that the initiative aims to balance economic and environmental interests while fostering long-term sustainability.
Sources:
[1] Oman’s new renewables policy to drive investments in energy storage https://www.zawya.com/en/business/energy/omans-new-renewables-policy-to-drive-investments-in-energy-storage-h3jxghue