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Observer
6 days ago
- Business
- Observer
Renewables share of Oman's total power output climbs to 11.5%
MUSCAT: The contribution of solar and wind capacity to Oman's total electricity generation more than doubled to approximately 11.5 per cent during the first five months of this year (January–May), up from around 4.88 per cent at the end of December 2024. According to Nama Power and Water Procurement Company (PWP), the sole procurer of electricity and water capacity in the Sultanate of Oman, renewable energy—predominantly from solar sources—accounted for 1.88 terawatt-hours (TWh) during the January–May 2025 period. This compares with total renewable output of 2.4 TWh for the whole of 2024. Furthermore, around 89,840 households were supplied with clean electricity during the five-month period, resulting in annualised emissions reductions of approximately 617,300 tonnes, Nama PWP added. This rapid increase in renewable generation supports the Omani government's strategy to achieve a clean energy share of around 30–40 per cent of total generation capacity by 2030, rising to 60–70 per cent by 2040. The target is for 100 per cent clean energy generation capacity by 2050. Currently connected to the national grid are the following utility-scale renewable energy projects: Dhofar I Wind Farm (50 MW), Ibri II Solar IPP (500 MW), and the Manah 1 and Manah 2 Solar IPPs (1,000 MW combined). Next to join the grid is the Ibri III Solar IPP (500 MW), which is currently in early development. In the next phase of renewable energy development, Oman is shifting its focus to wind power, with five wind farms—together representing over 1 gigawatt (GW) of capacity—currently under competitive tendering, overseen by Nama PWP. These projects are planned for Jaalan Bani Bu Ali, Duqm, Mahoot, Dhofar, and Sadah. The total investment in these Independent Power Projects (IPPs) is estimated at around RO 450 million (approximately $1.2 billion). Also in the pipeline is a series of new solar IPPs, aggregating around 4,500 megawatts (MW) in capacity and requiring an estimated investment of $2.8 billion. At least four new solar projects are envisioned for implementation over the next six years. The largest of these is the so-called 'Solar PV IPPs 2030'—a mega-project comprising one or more developments with a combined capacity of 3 GW. A Request for Proposals (RfP) for this groundbreaking scheme—estimated to cost between $1 billion and $1.5 billion—is expected to be issued in Q1 2027, with commercial operations anticipated by Q1 2030. Preceding this is the 'Solar PV IPPs 2029' initiative, centred on the development of a 1 GW capacity PV project, with a projected investment of $600–800 million. It is slated to begin operations in Q1 2029. Additionally, Sinaw in the North Al Sharqiyah Governorate is expected to host a 250–300 MW solar PV project, valued at around $200–250 million. The plant is scheduled to come online by Q2 2028. Recently, Nama PWP launched a competitive tender for a 280 MW solar IPP at Al Kamil in South Al Sharqiyah Governorate. Estimated at $200–250 million, this project is expected to be operational by Q1 2028.
Observer
31-05-2025
- Business
- Observer
Oman's first renewable energy storage project imminent
MUSCAT: The Sultanate of Oman is making significant efforts to implement green energy projects, as "Oman Vision 2040" aims for these projects to contribute nearly 30 per cent of the country's total electricity generation by 2030. Eng Salim bin Nasser al Aufi, Minister of Energy and Minerals, revealed that five to six new renewable energy projects — focused on wind and solar power — will commence this year, with particular emphasis on wind energy due to Oman's strong potential in this sector. Eng Salim bin Nasser al Aufi, Minister of Energy and Minerals Al Aufi noted that these projects will be located in various sites where wind energy has been measured, mostly in the Al Wusta and Dhofar governorates. They are expected to begin production by the end of 2027, generating over 2,000 megawatts. He affirmed that the Ministry of Energy and Minerals is collaborating with its partners in Nama Group and the Authority for Public Services Regulation to explore the best methods for storing renewable energy, whether through conventional or innovative approaches applicable in Oman. He also confirmed that an announcement regarding Oman's first renewable energy storage project will be made soon. The minister added that these projects will strengthen Oman's transition to renewable energy while creating vast opportunities for industries reliant on clean and sustainable power. He highlighted that Oman has already launched the "Manah 1" and "Manah 2" renewable energy plants, with a combined capacity of around 1,000 megawatts. Initial results indicate that each plant is producing over 500 megawatts, exceeding expectations. Furthermore, he explained that the Ministry of Energy and Minerals, the Ministry of Transport, Communications and Information Technology; and Petroleum Development Oman (PDO) are working to establish a hydrogen pathway by setting up production and supply stations within concession areas. This initiative aims to use hydrogen as fuel for trucks operating between these zones. — ONA
Muscat Daily
31-05-2025
- Business
- Muscat Daily
Oman to launch its first renewable energy storage project
Muscat – Oman will soon announce its first renewable energy storage project as part of ongoing efforts to expand clean energy capacity and reduce dependence on conventional power sources. H E Salem bin Nasser al Aufi, Minister of Energy and Minerals, has confirmed that five to six new wind and solar projects are scheduled to begin this year, with particular focus on wind power due to the sultanate's strong potential in this area. These projects are expected to begin generating more than 2,000MW of electricity by the end of 2027. A majority of the wind projects will be located in Al Wusta and Dhofar, where long-term wind measurements have confirmed viable generation capacity. 'Ministry of Energy and Minerals (MEM) is working with Nama Group and the Authority for Public Services Regulation to identify the most suitable solutions for energy storage, whether through conventional or emerging technologies,' H E Aufi said. 'The first storage project will be announced soon.' H E Salem bin Nasser al Aufi, Minister of Energy and Minerals He added that the projects support Oman's energy transition strategy and create opportunities to develop industries powered by clean energy. Oman Vision 2040 targets renewable energy to make up around 30% of the country's total electricity generation by 2030. In line with this, the Manah 1 and Manah 2 solar plants have been launched, with a combined capacity of approximately 1,000MW. MEM is also working in coordination with Ministry of Transport, Communications and Information Technology and Petroleum Development Oman to establish a hydrogen corridor. The initiative aims to set up hydrogen production and supply stations in concession areas, enabling the fuelling of trucks operating between these.
Zawya
24-03-2025
- Business
- Zawya
Oman's circular solar economy: Opportunities & challenges in PV sustainability
Oman is steadily advancing toward its Vision 2040 goals, with renewable energy playing a crucial role in its economic diversification strategy. With an abundance of sunlight, the country has invested heavily in solar energy projects, including the Ibri II and Manah 1&2 solar plants. However, as Oman accelerates its solar adoption, it must also prepare for the challenge of managing solar photovoltaic (PV) waste. Without a structured approach to recycling and circularity, the country risks facing a growing environmental burden and lost economic opportunities. A recent report titled 'Circular Solar: Opportunities and Challenges in Solar PV' by the University of Cambridge Institute for Sustainability Leadership (CISL), IfM Engage, and Group Innovation GmbH highlights the importance of integrating circular economy principles into the solar sector. This essay examines how Oman can benefit from solar circularity, leveraging international best practices to strengthen its renewable energy sustainability, create economic opportunities, and establish itself as a leader in the Gulf's green transition. CIRCULARITY IN SOLAR ENERGY Solar PV technology has experienced rapid global growth, driven by declining costs and technological advancements. The International Renewable Energy Agency (IRENA) predicts that by 2050, global solar installations will exceed 4.6 terawatts (TW), but this will also result in over 200 million metric tonnes of solar panel waste. Without a proper recycling framework, most of this waste will end up in landfills, leading to resource loss and environmental hazards. Oman's increasing reliance on solar power makes it essential to address this challenge early. By incorporating circular economy strategies, the country can reduce environmental damage, lower costs for new solar projects, and extend the lifespan of solar investments. The question remains: How can Oman effectively integrate solar circularity into its renewable energy policy framework? OMAN IN THE CIRCULAR SOLAR ECONOMY One of the most effective approaches for Oman is adopting the '4R' framework outlined in the report: Reuse, Refurbishment, Remanufacturing, and Recycling. Reuse involves extending the life of solar panels through repairs and repurposing, while refurbishment upgrades panels for secondary applications. Remanufacturing disassembles panels to rebuild new ones using recovered components, and recycling extracts valuable materials like silver, silicon, aluminum, and copper for reuse in new solar panels. Oman can also learn from the European Union's (EU) circular solar policies. The Waste from Electrical and Electronic Equipment (WEEE) Directive mandates that 85% of solar panels must be collected and recycled by manufacturers. By implementing similar regulations, Oman can prevent improper disposal, promote responsible recycling, and attract investments in solar waste management. The circular solar economy also presents a strong economic opportunity. According to SolarPower Europe, the EU solar recycling sector could create over 16,000 jobs by 2028. In Oman, solar panel refurbishment and recycling facilities could lead to new employment opportunities in green industries, fostering public-private partnerships and attracting foreign investments in sustainable technologies. Moreover, Oman has the potential to position itself as a regional hub for solar PV sustainability. As Saudi Arabia, the UAE, and other GCC nations expand their solar industries, Oman can lead by establishing solar PV recycling and refurbishment facilities, serving both domestic and regional markets. CHALLENGES Despite the benefits, Oman faces several challenges in developing a circular solar economy. One of the biggest obstacles is weak market formation for solar PV recycling. Due to the availability of cheap new solar panels, there is low demand for second-life panels. Additionally, many businesses and consumers are unaware of solar circularity, and there is a lack of certification for refurbished panels, making their resale difficult. Another major challenge is the absence of large-scale solar recycling infrastructure. Oman currently does not have dedicated facilities for solar panel recycling, which means that decommissioned panels either end up in landfills or are exported without proper oversight. To address this, the government must incentivize private sector investment in recycling facilities and establish a national network for collecting and processing solar waste. Policy gaps also hinder progress. While Oman has made strides in solar energy expansion, there is no dedicated regulation for solar panel recycling or circular economy mandates. Implementing policies such as extended producer responsibility (EPR)—which makes manufacturers responsible for collecting and recycling old panels—could ensure sustainable end-of-life management. Finally, technological and financial barriers pose additional difficulties. High-tech solar recycling methods, such as chemical and thermal processes, require substantial investment. To overcome this, Oman can partner with international solar firms, leverage regional cooperation within the GCC, and establish joint ventures with recycling technology leaders. RECOMMENDATIONS To effectively integrate circularity in its solar energy sector, Oman should take several key steps. First, the government must develop a National Solar Circularity Policy that includes mandates for solar panel recycling, producer responsibility regulations, and incentives for second-life PV solutions. A well-structured policy would create clear guidelines for manufacturers, businesses, and consumers, ensuring that solar waste is managed sustainably. Second, Oman should incentivize private sector investment by offering tax benefits and financial support to companies engaged in solar panel recycling and refurbishment. Establishing public-private partnerships (PPPs) can also accelerate the development of solar circularity projects. Third, investment in solar recycling R&D and infrastructure is crucial. Oman should set up pilot recycling plants in free zones or industrial areas, where businesses can test and develop solar PV recycling solutions. Universities and research institutions can also play a role by conducting studies on cost-effective solar waste management techniques. Fourth, Oman must promote public awareness and introduce a certification system for second-life PV panels. Consumer education campaigns can encourage businesses and individuals to opt for refurbished solar panels, reducing unnecessary waste. A government-backed certification systemwould also ensure that reconditioned panels meet quality standards, making them a viable alternative to new imports. Finally, Oman should strengthen regional and global collaborations. Partnering with the EU and China, both of which have advanced solar recycling programmes, could help transfer knowledge and best practices. Additionally, advocating for a GCC-wide policy on solar PV circularity would enable cross-border cooperation in solar waste management. CONCLUSION Oman's renewable energy transition is a step in the right direction, but it must also address the end-of-life challenges associated with solar PV technology. The circular solar economy offers a solution that is not only environmentally necessary but also economically beneficial. By adopting EU-style regulations, investing in solar recycling infrastructure, and fostering public-private partnerships, Oman can position itself as a leader in solar sustainability in the Gulf. The transition to a circular solar economy will require policy reforms, investment in technology, and regional collaboration, but if implemented successfully, Oman will reap long-term benefits in sustainability, economic diversification, and job creation. The time to act is now—before the solar waste crisis becomes a reality. 2022 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (
Observer
22-03-2025
- Business
- Observer
Oman's circular solar economy: Opportunities & challenges in PV sustainability
Oman is steadily advancing toward its Vision 2040 goals, with renewable energy playing a crucial role in its economic diversification strategy. With an abundance of sunlight, the country has invested heavily in solar energy projects, including the Ibri II and Manah 1&2 solar plants. However, as Oman accelerates its solar adoption, it must also prepare for the challenge of managing solar photovoltaic (PV) waste. Without a structured approach to recycling and circularity, the country risks facing a growing environmental burden and lost economic opportunities. A recent report titled 'Circular Solar: Opportunities and Challenges in Solar PV' by the University of Cambridge Institute for Sustainability Leadership (CISL), IfM Engage, and Group Innovation GmbH highlights the importance of integrating circular economy principles into the solar sector. This essay examines how Oman can benefit from solar circularity, leveraging international best practices to strengthen its renewable energy sustainability, create economic opportunities, and establish itself as a leader in the Gulf's green transition. CIRCULARITY IN SOLAR ENERGY Solar PV technology has experienced rapid global growth, driven by declining costs and technological advancements. The International Renewable Energy Agency (IRENA) predicts that by 2050, global solar installations will exceed 4.6 terawatts (TW), but this will also result in over 200 million metric tonnes of solar panel waste. Without a proper recycling framework, most of this waste will end up in landfills, leading to resource loss and environmental hazards. Oman's increasing reliance on solar power makes it essential to address this challenge early. By incorporating circular economy strategies, the country can reduce environmental damage, lower costs for new solar projects, and extend the lifespan of solar investments. The question remains: How can Oman effectively integrate solar circularity into its renewable energy policy framework? OMAN IN THE CIRCULAR SOLAR ECONOMY One of the most effective approaches for Oman is adopting the '4R' framework outlined in the report: Reuse, Refurbishment, Remanufacturing, and Recycling. Reuse involves extending the life of solar panels through repairs and repurposing, while refurbishment upgrades panels for secondary applications. Remanufacturing disassembles panels to rebuild new ones using recovered components, and recycling extracts valuable materials like silver, silicon, aluminum, and copper for reuse in new solar panels. Oman can also learn from the European Union's (EU) circular solar policies. The Waste from Electrical and Electronic Equipment (WEEE) Directive mandates that 85% of solar panels must be collected and recycled by manufacturers. By implementing similar regulations, Oman can prevent improper disposal, promote responsible recycling, and attract investments in solar waste management. The circular solar economy also presents a strong economic opportunity. According to SolarPower Europe, the EU solar recycling sector could create over 16,000 jobs by 2028. In Oman, solar panel refurbishment and recycling facilities could lead to new employment opportunities in green industries, fostering public-private partnerships and attracting foreign investments in sustainable technologies. Moreover, Oman has the potential to position itself as a regional hub for solar PV sustainability. As Saudi Arabia, the UAE, and other GCC nations expand their solar industries, Oman can lead by establishing solar PV recycling and refurbishment facilities, serving both domestic and regional markets. CHALLENGES Despite the benefits, Oman faces several challenges in developing a circular solar economy. One of the biggest obstacles is weak market formation for solar PV recycling. Due to the availability of cheap new solar panels, there is low demand for second-life panels. Additionally, many businesses and consumers are unaware of solar circularity, and there is a lack of certification for refurbished panels, making their resale difficult. Another major challenge is the absence of large-scale solar recycling infrastructure. Oman currently does not have dedicated facilities for solar panel recycling, which means that decommissioned panels either end up in landfills or are exported without proper oversight. To address this, the government must incentivize private sector investment in recycling facilities and establish a national network for collecting and processing solar waste. Policy gaps also hinder progress. While Oman has made strides in solar energy expansion, there is no dedicated regulation for solar panel recycling or circular economy mandates. Implementing policies such as extended producer responsibility (EPR)—which makes manufacturers responsible for collecting and recycling old panels—could ensure sustainable end-of-life management. Finally, technological and financial barriers pose additional difficulties. High-tech solar recycling methods, such as chemical and thermal processes, require substantial investment. To overcome this, Oman can partner with international solar firms, leverage regional cooperation within the GCC, and establish joint ventures with recycling technology leaders. RECOMMENDATIONS To effectively integrate circularity in its solar energy sector, Oman should take several key steps. First, the government must develop a National Solar Circularity Policy that includes mandates for solar panel recycling, producer responsibility regulations, and incentives for second-life PV solutions. A well-structured policy would create clear guidelines for manufacturers, businesses, and consumers, ensuring that solar waste is managed sustainably. Second, Oman should incentivize private sector investment by offering tax benefits and financial support to companies engaged in solar panel recycling and refurbishment. Establishing public-private partnerships (PPPs) can also accelerate the development of solar circularity projects. Third, investment in solar recycling R&D and infrastructure is crucial. Oman should set up pilot recycling plants in free zones or industrial areas, where businesses can test and develop solar PV recycling solutions. Universities and research institutions can also play a role by conducting studies on cost-effective solar waste management techniques. Fourth, Oman must promote public awareness and introduce a certification system for second-life PV panels. Consumer education campaigns can encourage businesses and individuals to opt for refurbished solar panels, reducing unnecessary waste. A government-backed certification systemwould also ensure that reconditioned panels meet quality standards, making them a viable alternative to new imports. Finally, Oman should strengthen regional and global collaborations. Partnering with the EU and China, both of which have advanced solar recycling programmes, could help transfer knowledge and best practices. Additionally, advocating for a GCC-wide policy on solar PV circularity would enable cross-border cooperation in solar waste management. CONCLUSION Oman's renewable energy transition is a step in the right direction, but it must also address the end-of-life challenges associated with solar PV technology. The circular solar economy offers a solution that is not only environmentally necessary but also economically beneficial. By adopting EU-style regulations, investing in solar recycling infrastructure, and fostering public-private partnerships, Oman can position itself as a leader in solar sustainability in the Gulf. The transition to a circular solar economy will require policy reforms, investment in technology, and regional collaboration, but if implemented successfully, Oman will reap long-term benefits in sustainability, economic diversification, and job creation. The time to act is now—before the solar waste crisis becomes a reality. The writer is the head of Oman Observer's Business section
