Oman Power Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Volume (2024) | 15.67 gigawatt |
| Market Volume (2029) | 19.40 gigawatt |
| CAGR (2024 - 2029) | 4.40 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Oman Power Market Analysis
The Oman Power Market size is estimated at 15.67 gigawatt in 2024, and is expected to reach 19.40 gigawatt by 2029, growing at a CAGR of 4.40% during the forecast period (2024-2029).
• Over the short term, upcoming new renewable projects in the country, such as the expansion of transmission and distribution projects, are expected to drive the market studied during the forecast period.
• On the other hand, market growth may face obstacles due to the lack of private participation in the country's power sector, thus restraining it.
• Nevertheless, Oman has gained political stability in the recent past. Under the government's Vision 2040 development strategy to boost tourism, modernize agriculture, establish free industrial zones, and foster a technology and start-up ecosystem, it is expected to bolster the power demand to the greatest extent, creating an opportunity for the market during the forecast period.
Oman Power Market Trends
Renewable Power Generation Segment to Witness Significant Growth
• The renewable power generation segment is expected to ace the Omani power market due to the country's considerable plans to increase renewable capacity and reduce dependency on the gas-fired system.
• According to the International Renewable Energy Agency, in 2023, Oman's renewable energy generation capacity was around 722 MW. The capacity increased drastically in 2022. In 2021, total renewable installed capacity was 205 MW. The renewable capacity is expected to increase with the government's target toward renewable energy.
• The Oman government announced an ambitious plan to meet 30% of power demand through renewable power generation by 2030. Over two-thirds of it is expected to be completed by solar energy and the rest by wind and waste-to-energy projects.
• The renewable power generation segment is expected to witness significant growth in the market studied 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.
• In March 2023, following permission from the Authority for Public Services Regulation (APSR), Oman Power and Water Procurement Company is expected to award solar energy projects worth USD 777 million to international investors. The Manah 1 and 2 projects, which would generate a total of 1,000MW, are intended to be built on a 15 million square meter plot of land within the Governorate of A'Dakhiliyah. It is projected that roughly 2.082 million solar panels will be put in these two stations, making this the Sultanate's largest solar panel installation.
• Thus, such a trend will cause the renewable power generation segment to grow significantly in the coming years.
Expansion of Transmission and Distribution Projects Driving the Market
• Due to rising power demand in Oman and growing infrastructure and population, the country plans to add more power generation capacity in the coming years. These plans require transmission system development to cope with the increased load. Oman plans to put 30 transmission projects into service till 2024.
• The state-owned utility's developments in the MITS (Main Interconnected Transmission System) 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. It offers uninterrupted power transmission and distribution systems to Oman power consumers.
• According to Statistical Review of World Energy Data, in 2022, Oman's electricity generation accounted for 41.4 terawatt hours, with an annual growth rate of 0.9% as compared to the previous year. With the upcoming power projects, power generation is expected to increase, which, in turn, will create demand for power transmission and distribution projects.
• The country planned to commission the 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 such factors, Oman's power transmission and distribution projects are expected to drive the power market during the forecast period.
Competitive Landscape
The Omani power market is consolidated. Some key players (in no particular order) include Oman Electricity Transmission Company, Muscat Electricity Distribution Company, Majan Electricity Distribution Company, Mazoon Electricity Distribution Company, and Dhofar Power Company.
Oman Power Market Leaders
Muscat Electricity Distribution Company
Mazoon Electricity Distribution Company-
Oman Electricity Transmission Company SAOC
Dhofar Power Company (DGC)
Majan Electricity Distribution Company (SAOC)
*Disclaimer: Major Players sorted in no particular order
Oman Power Market News
• April 2024: Technip Energies contracted with TotalEnergies and OQ for the Marsa LNG bunkering project in Sohar, Oman. The company will construct a solar-powered LNG Plant in Oman.
• March 2023: Sembcorp Industries was awarded the contract for the construction, ownership, and operation of the Manah Solar II Independent Power Project (IPP) in Manah, Oman. Oman Power and Water Procurement Company (OPWP) awarded the contract to the company. The agreement was won through a joint venture formed by Sembcorp's subsidiary, Sembcorp Utilities, and Jinko Power Technology. The 500 MW solar installation will be operational by 2025, covered by a 20-year power purchase agreement (PPA) with OPWP.
• January 2022: ACWA Power commissioned the 500 MW Ibri 2 solar independent power project in Oman in partnership with the Oman Power and Water Procurement Company (OPWP). The project generates clean energy to power 50,000 homes and displaces 340,000 tons of carbon emissions annually.
Oman Power Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Installed Capacity and Forecast, until 2029
4.3 Electricity Generation Mix, 2023
4.4 Recent Trends and Developments
4.5 Government Policies, Regulations, and Targets
4.6 Market Dynamics
4.6.1 Drivers
4.6.1.1 Upcoming New Renewable Projects in the Country
4.6.1.2 Expansions of Transmission and Distribution Network
4.6.2 Restraints
4.6.2.1 Lack of Private Participation in the Country's Power Sector
4.7 Supply Chain Analysis
4.8 PESTLE Analysis
5. MARKET SEGMENTATION
5.1 Power Generation by Source
5.1.1 Natural Gas
5.1.2 Oil
5.1.3 Renewables
5.2 Power Transmission and Distribution (T&D)
6. COMPETITIVE LANDSCAPE
6.1 Mergers, Acquisitions, Collaboration, and Joint Ventures
6.2 Strategies Adopted by Key Players
6.3 Company Profiles
6.3.1 Mazoon Electricity Distribution Company
6.3.2 ACWA Power
6.3.3 Sohar Power Company SAOG
6.3.4 Oman Power & Water Procurement Company (OPWP)
6.3.5 United Power Company (SAOC)
6.3.6 Dhofar Generation Company (DGC)
6.3.7 Oman Electricity Transmission Company (SAOC)
6.3.8 Muscat Electricity Distribution Company
6.3.9 Majan Electricity Distribution Company (SAOC)
- *List Not Exhaustive
6.4 Market Ranking/Share (%) Analysis
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Oman Government's Vision 2040 Development Strategy
Oman Power Industry Segmentation
Power is the process of generating electric power from primary energy sources. Electricity generation for utilities in the electricity industry is the process of delivering (transmission, distribution, etc.) electricity to end users or storing it.
The Omani power market is segmented by power generation by source and power transmission and distribution (T&D). The market is segmented by power generation by source into natural gas, oil, and renewables. The market size and forecasts for each segment have been based on installed capacity, except for Power Transmission and Distribution (T&D), for which only qualitative analysis will be provided.
| Power Generation by Source | |
| Natural Gas | |
| Oil | |
| Renewables |
Oman Power Market Research Faqs
How big is the Oman Power Market?
The Oman Power Market size is expected to reach 15.67 gigawatt in 2024 and grow at a CAGR of 4.40% to reach 19.40 gigawatt by 2029.
What is the current Oman Power Market size?
In 2024, the Oman Power Market size is expected to reach 15.67 gigawatt.
Who are the key players in Oman Power Market?
Muscat Electricity Distribution Company, Mazoon Electricity Distribution Company-, Oman Electricity Transmission Company SAOC, Dhofar Power Company (DGC) and Majan Electricity Distribution Company (SAOC) are the major companies operating in the Oman Power Market.
What years does this Oman Power Market cover, and what was the market size in 2023?
In 2023, the Oman Power Market size was estimated at 14.98 gigawatt. The report covers the Oman Power Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Oman Power Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Oman Power Industry Report
Statistics for the 2024 Electricity Generation in Oman market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Electricity Generation in Oman analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
