In a recent report, the International Energy Agency (IEA) emphasised the Sultanate of Oman’s leading position in renewable energy generation to support the nation’s energy transition goals, particularly through the production of green hydrogen.
Oman is one of the select few Middle Eastern nations that are expected to surpass their national targets for producing hydrogen as a low-carbon energy feedstock, according to the agency’s premier annual report, “Renewables 2024,” which is published in Paris.
The report stated that “we expect the United Arab Emirates, Oman, and Morocco to exceed their ambitions for 2030,” referring to Oman’s objective of installing enough solar and wind power to power electrolyzers that can generate at least 1 million tonnes of green hydrogen annually by that year.
Saudi Arabia, a regional economic powerhouse, is expected to control the growth of renewable energy capacity in the region, accounting for about 40% of all new generation between 2024 and 2030, according to the report. Oman, the United Arab Emirates, Egypt, Iraq, and Morocco will highlight their aspirational energy transition objectives with a combined 44% share.
Driving this growth in renewables are two key factors, the IEA explained.
“The first is fast-rising domestic demand for electricity, spurred by population and economic growth. Peak demand reached record levels this year in Kuwait, Egypt, Algeria, Oman and Iraq as soaring temperatures raised air-conditioning use,” it said.
Notably, the IEA report also calls for significant investments in new onshore wind capacity in Oman and the larger MENA (Middle East and North Africa) area to promote the production of renewable electricity for home use. By the end of this decade, Oman, Saudi Arabia, and Egypt are expected to lead the development of about 4 gigawatts (GW) of new onshore wind capacity in the region.
Five wind-based Independent Power Projects (IPPs) totalling approximately 1 GW in generation capacity are currently under consideration for procurement in Oman. It is not any of the up-and-coming green hydrogen developers that will get the renewable electricity from these IPPs added to the national grid that powers domestic consumers.