New Policy for Self-Generation and Direct Sale of Electricity in Oman

The Ministry of Energy and Minerals in Oman has announced the launch of the “Policy for Renewable Energy Utilization for Self-Generation and Direct Sale.” This policy aims to liberalize the electricity market, optimize the use of renewable energy resources, and regulate processes related to self-generation and direct electricity sales. It represents a significant step toward achieving Oman’s sustainable development vision and encouraging investments in clean energy, ensuring a balance between investor and consumer interests.

Statement by the Undersecretary of the Ministry of Energy and Minerals

Mohsen bin Hamad Al-Hadhrami, Undersecretary of the Ministry of Energy and Minerals, described the new policy as a key milestone in developing Oman’s energy sector, emphasizing its goal to innovate and sustainably leverage renewable energy while creating a comprehensive regulatory framework for self-generation and direct electricity sales. He added that this policy fosters an attractive investment environment, ensures grid stability, and meets the needs of both consumers and investors.

Key Objectives of the Policy

• Achieving 90% to 100% electricity generation from renewable energy sources by 2050.
• Enhancing energy efficiency and reducing carbon emissions.
• Building the necessary infrastructure for government, private sector, and citizen collaboration in energy production.

Self-Generation Policy

This policy regulates and facilitates the production of electricity from renewable sources for personal use:

• Small-scale projects are exempted from direct coordination with the Ministry.
• An annual cap on self-generated electricity production is set in coordination with the Public Services Regulatory Authority.
• The use of energy storage systems is permitted if economically viable.

Direct Sale Policy

The direct sale policy allows qualified producers to sell renewable electricity directly to eligible consumers without intermediaries:

• Consumers must pay a special tariff for electricity transmission and distribution.
• Producers must comply with regulations set by the Public Services Regulatory Authority.

Electricity Transmission Policy

This policy enables producers to transmit electricity through national grids to consumers:

• Technical requirements ensure grid stability.
• Consumers bear the costs of electricity transmission.

Conclusion

These new policies mark a critical step toward maximizing the use of renewable energy in Oman, supporting the nation’s sustainable development goals, and enhancing energy sector stability. This initiative propels Oman closer to achieving its net-zero carbon goals by 2050.