Oman Power Market- Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Oman Power Market- Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Oman power market is expected to rise with a CAGR of around 5% during the forecast period of 2021-2026 due to rapid population growth and expanding economy. The Oman Power market had been hit hard by the Covid-19 pandemic due to the drop in electricity demand, mainly from the industrial and commercial sectors. As a result, many power projects faced halts and abandonments in 2020. However, the market is expected to have robust growth in the forecast period due to a vast recovery in electricity demand after the pandemic. Moreover, new renewable projects are lined up in the country, which is expected to drive the power generation and distribution market. The market growth may face obstacles, too, due to the lack of private participation in the power sector in Oman.

· The power generation segment is expected to dominate the market in the forecast period. The country aims to diversify its energy mix away from gas-fired power generation and increase the share of renewables in the power sector.

· Oman has gained political stability in the recent past. It respects free markets, property rights, and the rule of law is widespread. It has started believing in the private sector for finance and expertise by adopting Public-Private Partnership(PPP) models, especially in the power sector. The government’s Vision 2040 development strategy to boost tourism, modernize agriculture, establish free industrial zones, foster technology, and start-up ecosystem will bolster the power demand up to the greatest extent, which would create an opportunity for the market to grow in the near future.

· The Oman Power market is expected to grow in the near future since many transmission, and distribution projects are queued up for the next five years.

Key Market TrendsPower Generation Segment is Expected to Dominate the Market

· The Power Generation segment is expected to ace the Oman Power market due to the country’s huge plans to increase the renewable capacity and reduce the dependency on the gas-fired system.

· In 2020, the power generation capacity in Oman was around 38.9TWh. As of 2021, the Oman government announced the ambitious plan of meeting 30% of power demand through renewable power generation by 2030. Over two-thirds of it will be met by solar energy, and the rest will be met by wind and Waste-to-energy projects.

· The significant projects planned by the government in 2021 to achieve the goal are “SAHIM” and the two Manah solar projects. The SAHIM initiative aims at installing rooftop photovoltaic solar systems for households and businesses. Around 30% of residential premises are at the target. Additionally, Oman Power & Water Procurement (OPWP) company announced plans in 2020 to award two solar PV projects,” Manah I and II,” 1000MW, to private developers.

· Oman has around 17 renewable power generation plants under construction, as of 2021. All these factors are expected to steer the segment growth in the coming years.

Transmission and Distribution Projects are expected to drive the Oman Power Market

· On account of the rising power demand in Oman due to growing infrastructure and rising population, the country has plans to add more power generation capacity in the coming years. These plans require transmission system development to cope up with the increased load. They now have plans for 30 transmission projects to be in service in the period 2021-2024.

· The projects will be added to the two main grids of the country at MIS and Dhofar system. The transmission project of connecting 1000 MW Solar IPP in Manah is expected to be completed by 2022. Each 500MW Solar plant at Manah will be connected to the transmission grid by 2023 and 2024, respectively. Other projects are also expected to add high capacities to the present grid.

· In a holistic view, the state-owned utility’s developments in the MIS grid include the installation and operation of new 400kV transmission lines with the associated new 400/132kV, 400/132/33kV, and 400/33kV grid stations. Moreover, installation of 220kV and 132kV transmission lines with associated new 220/132kV and 132/33kV grid stations at MIS and Dhofar system.

· Oman has already commissioned many transmission projects as of 2021, which are currently serving the nation. Some of them are the Qabel grid station, Sohar IPP 3-Sohar Free Zone Line, the Transmission line to Ibri IPP, and many others. The total projects that are already in service make a count of 685km of transmission line newly added in the last three years.

· Owing to these factors, the power transmission and distribution sector of Oman will have robust growth in the near future.

Competitive Landscape

The Oman Power Market is consolidated. Some of the key players in this market include Oman Electricity Transmission Company, Muscat Electricity Distribution Company, Majan Electricity Distribution Company, Mazoon Electricity Distribution Company, and Dhofar Power Company among others.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

Mazoon Electricity Distribution Company
ACWA Power
Sohar Power Company SAOG
Oman Power & Water Procurement Company (OPWP)
United Power Company(SAOG)
Dhofar Generation Company SAOC
Oman Electricity Transmission Company S.A.O.C
Muscat Electricity Distribution Company
Majan Electricity Distribution Company (SAOC)

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