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Oman Accelerates Renewable Energy and Green Hydrogen Transition

Oman is rapidly expanding its renewable energy sector, with renewables already contributing 11.5% of electricity generation as of May 2025. The country targets 30% by 2030 and 60% by 2040. Existing projects like Dhofar 1 wind farm, Ibri 2 solar, and Manah solar plants form the backbone, while upcoming projects include Ibri 3 solar (500 MW), Jaalan Bani Bu Ali wind (100 MW), Dhofar 2 wind (120 MW), and large wind projects in Sadah and Mahout.

Solar initiatives such as Al Kamel (280 MW) and another 220 MW project are also progressing.

In parallel, Oman’s green hydrogen ambitions are being supported through Hydrom’s new fiscal incentives under its third hydrogen auction. These include a 90% land lease fee reduction, possible FEED phase relief, lower royalties in early years, and 10-year corporate tax exemptions, aiming to make projects more viable and attract global players. Round 3 offers 300 sq km of land in Duqm, with a minimum project size of 100 sq km.

Neighboring Qatar is updating its sovereign green assets register and issued $2.5 billion sovereign green bonds in 2024, which were oversubscribed. Meanwhile, Oman Data Park launched a 1.4 MW solar-powered Green Energy Data Center, and the World Bank’s IFC approved $250 million financing for a $1.6 billion 100,000-ton polysilicon plant in Sohar, the first in the Middle East.