Oman Prepares For 7% Annual Power Demand Growth With Major Renewable And Grid Expansion Plans

Oman is preparing for a strong rise in electricity demand over the coming years as the country moves ahead with economic growth and large industrial projects. According to projections by Nama Power and Water Procurement Company, power demand in the main interconnected system is expected to grow at an average rate of 7.2 percent annually through 2031. In the Dhofar region, the increase is projected to be even higher, with peak demand rising by around 9.1 percent each year.

This steady growth in electricity use is closely linked to Oman’s long-term development plan under Oman Vision 2040. The country is investing heavily in infrastructure, manufacturing, and other industrial sectors to diversify its economy beyond oil and gas. As new industrial zones, commercial hubs, and residential communities expand, ensuring a reliable and stable electricity supply has become a key priority for the government.

To meet rising demand, Oman is adopting a balanced power procurement strategy. The plan includes the addition of high-efficiency thermal power plants while also increasing investment in renewable energy and storage systems. A major goal is to reduce dependence on natural gas for power generation. By 2030, the country aims to generate 30 percent of its electricity from renewable sources such as solar and wind. Current estimates indicate that Oman may meet or even exceed this target.

By 2031, solar energy alone is expected to contribute more than 23 percent of the total electricity generation mix. Overall, renewable energy could account for as much as 39 percent of generation. As a result, the share of gas-fired power is projected to fall below 50 percent by the beginning of the next decade. This shift reflects Oman’s effort to build a cleaner and more sustainable energy system.

Several major renewable projects are already in the pipeline. These include the Ibri III Solar project, multiple large-scale solar plants with capacities of 1,000 megawatts each, new wind farms, and a waste-to-energy facility planned in Barka. Together, these developments are expected to raise Oman’s installed renewable energy capacity to more than 12,000 megawatts by 2031.

At the same time, the country is strengthening its transmission network. A key project is the 400kV North-South Interconnect, which will link the northern, central, and southern power systems into a unified national grid. Scheduled for completion by late 2026, this project will improve system reliability and allow electricity to flow efficiently across regions. With these steps, Oman aims to secure stable power supplies to support its growing economy and population.