Utilities
From The Report: Oman 2025
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Oman’s utilities sector is experiencing significant change as the country places greater emphasis on renewable energy. With a growing population of 5.5 million as of early 2025, the demand for electricity and water is rising. In response, efforts are being made to improve the efficiency and cost-effectiveness of distribution networks through regulatory reforms and infrastructure upgrades. Private investment is being encouraged, particularly in power generation and water production – an especially critical area given Oman’s limited groundwater resources. Additionally, the introduction of an electricity spot market marks a step towards liberalising the sector. This move aims to make electricity procurement more competitive and transparent, potentially attracting international investors. The broader transition aligns with Oman’s long-term economic goals, promoting sustainability while ensuring reliable service delivery. These developments position the utilities sector as a key area of opportunity for both domestic and foreign investment in the years ahead.

This chapter contains interviews with Mansoor Al Hinai, Chairman, Authority for Public Services Regulation; and Ahmed bin Salim Al Abri, CEO, Nama Power and Water Procurement.

Articles from this Chapter

Overview

Power surge: Regulatory developments, efforts to integrate electricity grids and potential for private financing expected to boost investment
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Oman’s utilities sector is undergoing notable transformation, with the government prioritising renewable energy production. The country’s population – 5.5m as of early 2025 – is expanding, so sector operators are working to raise the efficiency and cost-effectiveness of electricity and water distribution networks through a range of regulatory and infrastructure upgrades. Private investment is being sought in power and water production projects, with the latter of key significance due to the scarcity of groundwater in Oman. Meanwhile, the introduction of an electricity spot market hints at an intention to liberalise electricity procurement…

Analysis

Strong link: The first phase of a project to interconnect Oman’s electricity grid is completed, with phase two gaining pace
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Announced in October, 2020, the government’s Rabt programme is designed to support economic growth and national energy security through the modernisation of Oman’s power system, integrating the north and south sections of the grid and upgrading its capabilities. In addition to sustainable nationwide energy supply and connectivity, the sultanate is working to connect its grid with the GCC Interconnection Authority’s (GCCIA) network. The government’s overarching economic development blueprint, Oman Vision 2040, sets the target of total installed renewable energy capacity to account for 30% of total power capacity by 2030 as part of a broader…

Interview

Network strength: Mansoor Al Hinai, Chairman, Authority for Public Services Regulation, on how the development of infrastructure and integration of renewable energy sources boost capacity
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Interview: Mansoor Al Hinai How can developing key utilities infrastructure support long-term energy and sustainability goals? MANSOOR AL HINAI: Expanding and modernising Oman’s national grid is key to integrating more renewable energy and supporting long-term sustainability goals. A significant milestone has been the interconnection of the northern and southern electricity networks, improving grid reliability and enabling efficient power distribution. This is crucial for harnessing solar and…

Interview

New generation: Ahmed bin Salim Al Abri, CEO, Nama Power and Water Procurement, on adding private energy to the national grid
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Interview: Ahmed bin Salim Al Abri How are Oman’s national sustainability priorities influencing the development of electricity generation and water desalination projects? AHMED BIN SALIM AL ABRI: Oman has been focused on sustainability and the development of renewable energy since 2017, and the sultanate has set clear goals for the electricity sector. Our first utility-scale solar photovoltaic (PV) project introduced renewables into the grid in 2021. It was a significant milestone, as prices…

Analysis

Moving forwards: Desalination is seen as a reliable solution to water shortages, particularly as the technology becomes more economical
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Desalination is considered an expensive and energy-intensive process. However, governments are seeking to tap renewable resources to limit the cost and environmental concerns associated with this crucial process. For example, in a push for zero-carbon desalination, the Dubai Electricity and Water Authority (DEWA) signed a partnership agreement with Dutch start-up Desolenator in 2022 to develop a solar-powered desalination pilot project. The companies have installed a pilot plant at the Jebel Ali power plant and a desalination complex, which produces 1000 litres per day, with the potential to reduce the cost of desalinated water to $0.02 per litre.…