The Ministry of Energy and Minerals has announced the "Renewable Energy Utilization Policy for Self-Generation and Direct Sale." This policy aims to further liberalize Oman's electricity market, promote wider adoption of renewable energy for electricity generation, and establish a regulatory framework for self-generation and direct sales. It aligns with the Sultanate's vision for sustainable development, encouraging investment in clean energy to bolster the growth of the renewable energy sector while balancing the interests of investors and consumers.
His Excellency the Undersecretary of the Ministry of Energy and Minerals’ Statement:
His Excellency Mohsin Hamad Al Hadhrami, Undersecretary of the Ministry of Energy and Minerals, explained that the new policy represents a pivotal step in the development of the Sultanate's energy sector. He emphasized that it aims to enable the utilization of renewable energy in innovative and sustainable ways. He further indicated that the policy provides a comprehensive regulatory framework that supports the implementation of self-generation and direct sale projects for electricity, thereby contributing to the strengthening and regulation of the energy infrastructure. He added that the policy aims to create an attractive investment environment that balances economic and environmental interests, while taking into account the sustainability of the electricity grid and meeting the requirements of consumers and investors.
His Excellency highlighted that this policy will advance the Sultanate's energy sector objectives and its net-zero emissions targets, with the aim of generating 90% to 100% of Oman's electricity from renewable sources by 2050. He further explained that the policy seeks to enhance energy efficiency, diversify energy sources, and lower carbon emissions, thereby contributing to the achievement of net-zero targets by 2050. He also noted that the policy promotes a collaborative approach involving the government, the private sector, and citizens in energy production, fostering a shared understanding of this vital sector's importance and promoting its long-term sustainability.
Self-Generation Policy:
The policy regulates the self-generation of electricity from renewable energy sources to meet consumer needs, while requiring adherence to specific licenses obtained from the Authority for Public Services Regulation (APSR). Small-scale projects with a production capacity not exceeding a certain threshold are exempt from direct coordination with the Ministry, thereby facilitating their implementation. The policy also stipulates setting an annual cap on electricity production via self-generation in coordination with the APSR to balance self-production with the needs of the national grid.
Self-generators are permitted to own and operate electricity storage equipment if economically viable, which contributes to enhancing the flexibility of renewable energy consumption. Consumers wishing to transition to self-generation are required to notify the relevant authorities of their timelines to ensure alignment with national plans.
Direct Sale Policy:
This policy regulates the direct sale of electricity generated from renewable energy sources by qualified producers to eligible consumers, without requiring recourse to Oman Power and Water Procurement Company. The policy stipulates that these operations must comply with the regulatory framework issued by the Authority for Public Services Regulation (APSR), including the establishment of an annual cap on production eligible for direct sale in coordination with the relevant authorities.
The policy also requires eligible consumers to pay a specific tariff for the transmission and wheeling of electricity across the national grid. This tariff will be determined based on their usage of the energy infrastructure. This arrangement aims to ensure the stability of the electricity grid and avoid any additional burden on other consumers who do not benefit from self-generation or direct sale.
Electricity Wheeling Policy:
This policy allows for the wheeling of electricity generated for direct sale purposes across the national grid owned by licensed electricity transmission and distribution companies, in accordance with regulatory controls established by the Authority for Public Services Regulation (APSR). The policy requires generated energy to align with annual targets set in coordination with the relevant authorities to ensure the achievement of renewable energy expansion objectives.
The policy also obligates eligible consumers to cover the costs associated with the wheeling process and pay the tariff determined by the APSR. Furthermore, the policy ensures that electricity wheeling is carried out in a manner that maintains the stability and operational efficiency of the national grid.
These three policies collectively represent a significant step towards promoting the utilization of renewable energy in the Sultanate of Oman, supporting the achievement of sustainable development and enhancing the stability and security of the country's energy sector.