Oman Power Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Oman Power Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The Oman power market is expected to register a CAGR of more than 5% during the forecast period, 2022-2027. 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 during 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 due to the lack of private participation in the country's power sector, thus restraining the market growth.

• The renewable power generation segment is expected to witness significant growth in the market during 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 is likely to bolster the power demand to the greatest extent, which would create an opportunity for the market to grow soon.
• 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.

• The renewable 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, Oman's renewable energy generation capacity was around 159 MW. 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 is expected to be met by solar energy, and the rest to 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 (National Renewable Energy Initiative) aims at installing rooftop photovoltaic solar systems for households and businesses. Around 30% of residential premises are at the target. Oman Power & Water Procurement (OPWP) company announced plans in 2020 to award two solar PV projects, Manah I and II, with a capacity of around 1000MW to private developers.
• Oman had around 17 renewable power generation plants under construction as of 2021. These factors are expected to steer the segment growth during the forecast period.

• 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 with the increased load. They now have plans for 30 transmission projects to be in service during 2021-2024.
• The state-owned utility's developments in the MIS grid include installing and operating new 400kV transmission lines with the associated new 400/132kV, 400/132/33kV, and 400/33kV grid stations. Moreover, installing 220kV and 132kV transmission lines with associated new 220/132kV and 132/33kV grid stations at MIS and Dhofar system reduces power outages across the grid and offers uninterrupted power transmission and distribution systems to Oman power consumers.
• Oman had already commissioned many transmission projects as of 2021. Some of them are the Qabel grid station, Sohar IPP 3-Sohar Free Zone Line, and the Transmission line to Ibri IPP. The total projects already in service make a count of 685km of transmission line newly added in the last three years.
• The country is planning to commission North-South Oman Interconnector Power Transmission Project, Saih Al Khairat 132/33 KV Grid Station, and New Rusail grid station 400/132 KV (Phase 1) by the end of 2023.
• Owing to these factors, Oman's power transmission and distribution projects are expected to drive the power market during the forecast period.

The Oman power market is consolidated. Some of the key players include Oman Electricity Transmission Company, Muscat Electricity Distribution Company, Majan Electricity Distribution Company, Mazoon Electricity Distribution Company, and Dhofar Power Company.

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