Renewable energy boost in Musandam
Source: Oman Observer — Business

The story in brief
Muscat, August 25 The Sultanate of Oman is taking a new step towards diversifying the electricity supply to the strategically located Musandam Governorate, through the Nama Power and Water Procurement Company... MUSCAT, AUGUST 25Oman is taking a fresh step towards diversifying the electricity supply of strategically located Musandam Governorate, with Nama Power & Water Procurement Company (PWP), the Sultanate of Oman’s sole buyer of power and water output, seeking a specialist consultant to assess the techno-economic feasibility of renewable energy development in the region.
Detailed summary
Muscat, August 25 The Sultanate of Oman is taking a new step towards diversifying the electricity supply to the strategically located Musandam Governorate, through the Nama Power and Water Procurement Company... MUSCAT, AUGUST 25Oman is taking a fresh step towards diversifying the electricity supply of strategically located Musandam Governorate, with Nama Power & Water Procurement Company (PWP), the Sultanate of Oman’s sole buyer of power and water output, seeking a specialist consultant to assess the techno-economic feasibility of renewable energy development in the region. Under a Request for Proposals issued on August 24, PWP is inviting consultants to evaluate the potential for solar photovoltaic, wind, hybrid renewable-energy configurations, battery energy storage systems (BESS) and other renewable-energy and storage technologies where technically and economically justified. Bids are due 24, 2026. The study could mark an important shift in Musandam from preliminary resource assessment towards determining the scale and configuration of clean-energy capacity that could ultimately be developed in the governorate. Musandam has historically operated as an isolated power system, with electricity supplied primarily by the gas-fired Musandam Power Plant near Khasab and supplemented by diesel generation in smaller and remote communities. Demand is rising, however, as tourism, fisheries and other economic activities expand. Peak demand is forecast to increase from 91 megawatts (MW) in 2024 to 130 MW by 2031, representing average annual growth of around 5 per cent, while average demand is projected to rise from 52 MW to 73 MW over the same period. The renewable-energy study comes against the backdrop of major plans to strengthen Musandam’s electricity infrastructure. Oman Electricity Transmission Company (OETC) is evaluating a 141-kilometre submarine cable linking Musandam’s Dibba grid station with Shinas and thereby connecting the governorate to Oman’s Main Interconnected System. The proposed 220kV link, together with new grid stations and voltage-support infrastructure, is targeted for operation around 2030, subject to regulatory guidance. OETC is also pursuing a separate interconnection between Musandam and the UAE transmission network, involving a new 132kV link between the Fila grid station in the UAE and Dibba in Oman. The project comprises around 25 km of overhead transmission line and 6 km of underground cable. The planned grid connections could significantly improve system resilience while creating greater scope for renewable-energy integration. PWP’s latest initiative builds on earlier efforts.
Background & context
This story sits within Oman's broader reform agenda and efforts to grow Energy & Renewables as a pillar of non-oil GDP. The region benefits from supportive energy prices, expansionary government budgets, and rising interest from sovereign wealth funds and foreign investors.
Key numbers & facts
- No specific figures were provided in the available source. See the original publisher for detailed numbers.
Key points
- Muscat, August 25 The Sultanate of Oman is taking a new step towards diversifying the electricity supply to the strategically located Musandam Governorate, through the Nama Power and Water Procurement Company...
- MUSCAT, AUGUST 25Oman is taking a fresh step towards diversifying the electricity supply of strategically located Musandam Governorate, with Nama Power & Water Procurement Company (PWP), the Sultanate of Oman’s sole buyer of power and water output, seeking a specialist consultant to assess the techno-economic feasibility of renewable energy development in the region.
Why this matters
This matters because activity in Energy & Renewables shapes capital flows, hiring and investor sentiment across Oman.
Economic & market impact
Potential impact: - Renewables developers and utilities may see project-pipeline impact.
GCC angle
For the rest of the GCC, this is a signal on the pace of activity in Energy & Renewables. Capital flows and regulatory decisions in one Gulf state typically travel across borders given the similar economic structures and the coordination inside the GCC framework.
Risks & uncertainty
There is uncertainty around the read-through: projections can be moved by swings in oil prices, by US monetary policy tightening that most GCC central banks track via dollar pegs, and by regional geopolitical events. Headline numbers may also be revised when subsequent official data is published.
What happens next?
Watch for upcoming disclosures from listed names in Energy & Renewables, official macro releases for Oman, and any commentary from regulators or sovereign wealth funds. Tharwa will refresh this briefing as new public information becomes available.
Sources used
This is an original Tharwa briefing based on the available source material. Read the full article from the publisher.
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