Oman opens renewable power market to direct private sales

Renewable energy producers in Oman can now sell electricity directly to large industrial and commercial users, after regulators dismantled a two-decade-old structure that required energy to be sold through a single government buyer. The new framework creates, for the first time, a private renewables market that sits entirely outside the procurement machinery run by Nama Power and Water Procurement Company (PWP).

How it works: The framework tiers renewable projects by size, with capacity and developer eligibility determining who can build what. The state is holding onto the exclusive rights to develop projects above 50 MW per subscriber, while projects running from 0.25-25 MW and 25-50 MW are open to qualified private sellers, subject to location and licensing rules. Anything above 25 MW also needs a sign-off from the Energy and Minerals Ministry. Below 0.25 MW is carved out for SMEs holding a Riyada certificate. Electricity prices can also now be freely negotiated between sellers and buyers without government price controls.

We’ve seen this happen before: Egypt is arguably the nearest parallel, with regulator EgyptERA greenlighting the country’s first private-to-private (P2P) contracts last year. The four approved wind and solar projects totaled 400 MW (100 MW each) with a total investment of USD 388 mn, with each project serving a major industrial or infrastructure player. Vietnam went further on mechanics, issuing its landmark DPPA decree in July 2024 allowing large consumers to buy directly from renewable generators of 10 MW-plus. The policy allows privately owned transmission lines to physically connect remote wind and solar farms to industrial buyers. Closer to home, Jordan allows corporate offtakers to contract renewables via wheeling arrangements, with grid-usage charges baked into the model.