Power sector of Oman—Today and tomorrow

In December 1999 the council of Ministers of Sultanate of Oman approved policies for the wholesale restructuring and privatization of the sultanate's electricity and related water sectors. The government started carrying out unbundling of the sector and setting up independent companies on a commercial basis. The companies are now shaping up for future electricity market. Beside these evolving structural changes, there would be a need to change their generation mix. Oman relies 100% on fossil fuel resources (mainly gas) for its power generation. However, Oman's natural gas supplies are largely committed and the country may become a net natural gas importer in the near future. Today, there is a great incentive for Oman to exploit renewable energy in order to face the changing environment and to guard against future trends. The electricity companies should investigate the renewable potential and work with Omani government and Authority for Electricity Regulation (AER) to establish policy support for large-scale renewable energy plants. Beside there is a huge potential for demand-side management and energy conservation which should be exploited for the benefit of the country and of the environment.