20211014-IRENA-Renewables_Readiness_Assessment_Sultanate_of_Oman_88页_3mb

Renewables Readiness Assessment (RRA) Summary: Sultanate of Oman

Introduction

The RRA assesses Oman's conditions for renewable energy deployment, identifies barriers, and recommends actions to facilitate sustainable energy development.

Key Findings

• Energy Context: Oman's economy is fuelled by oil and gas, with high energy subsidies reducing electricity prices and stimulating demand.
• Resource Potential: Oman has significant untapped solar (high global irradiation) and wind (coastal and southern regions) resources.
• Economic Case: Solar PV and wind power can be economically competitive, especially in rural areas, once subsidies are excluded. Gas prices subsidised electricity, making a levelised cost comparison crucial.
• Scope of Barriers: Non-economic barriers are significant, including fragmented governance, permitting complexity, lack of supportive policy and institutional frameworks. Financial barriers exist due to high project costs and perceived risks.

Recommendations

1. Develop and Implement Renewable Energy Policy: Formulate a National Renewable Energy Strategy (NRES) and Action Plan (NRAP). Establish a dedicated national authority to manage policies, regulations, and targets for renewable energy deployment in all applications.
2. Create an Enabling Environment:
   • Develop regulatory and market frameworks (incl. updated Grid Code).
   • Establish clear rules, incentive mechanisms (PPAs, FIT, competitive tendering), and funding principles for renewable energy projects.
3. Institutional and Legal Framework: Enact a Renewable Energy Law and nominate an authority with decision-making powers. Streamline permitting processes and revise land use, zoning, and interconnection regulations to facilitate project development.
4. Enhance Resource Data: Verify existing wind and solar assessments and conduct targeted studies for priority development areas. Utilize international data sources like the Global Atlas.
5. Capacity Building: Train personnel at various levels (academia, industry, Omani workforce) and build institutional capacity for renewable energy development, research, and project execution.

Key Actions & Timeline

• Initiate development of national energy and renewable energy strategies.
• Nominate key actors to spearhead these efforts.
• Prioritize capacity building early.
• Conduct resource verification and targeted assessments mid- to long-term.
• Includes recommendations for fostering private investment, exploring hybrid power models, and potentially creating a National Industrial Training Centre.

Conclusion

Oman has significant renewable energy potential. Developing a holistic national strategy, enabling policies, and building capacity are critical steps to unlock this potential, diversify the energy mix, enhance energy security, create jobs, and contribute to economic diversification.