By: Utilities Middle east

Sustained economic growth and large-scale industrial expansion are set to drive strong electricity demand across Oman between 2025 and 2031, according to projections by Nama Power and Water Procurement Company.

According to the news report by Zawya, within the Main Interconnected System (MIS), which serves north and central Oman excluding Musandam Governorate, peak demand is expected to rise at an average annual rate of 7.2%, increasing from 7,503MW in 2024 to 12,198MW by 2031.

In the Dhofar Power System (DPS), peak demand growth is forecast at 9.1% annually, climbing from 801MW in 2024 to 1,469MW by 2031.

Nama attributed the growth to robust GDP expansion, infrastructure development and the connection of large-scale projects under Oman’s economic diversification strategy.

To meet rising demand, the country’s procurement strategy over 2025–2031 focuses on a balanced generation mix incorporating utility-scale renewables, energy storage and high-efficiency thermal capacity, aligned with Oman Vision 2040.

Oman aims to source 30% of electricity from renewables by 2030. Current project pipelines indicate the target could be achieved — or potentially exceeded — as solar and wind capacity accelerates.

By 2030, wind is projected to contribute 6.75% of generation and solar PV 16.16%, bringing combined renewable output to 30%, while gas-fired plants account for 53.46%. In 2031, solar’s share is forecast to rise to 23.26%, lifting renewables to 39% and reducing gas-based generation to 48.52%.

Installed renewable capacity is expected to reach 9,087MW by 2030 and 12,182MW by 2031, supported by a pipeline that includes Ibri III Solar (500MW), Mahout Wind (800MW), a 1,000MW Solar IPP in 2029 and six additional 1,000MW solar PV projects in 2030–2031. The 95MW Barka Waste-to-Energy project is also scheduled for completion in 2031.

Grid expansion will play a critical role in supporting this transition. The 400kV North–South Interconnect, linking northern and central Oman, including Al Duqm and Al Wusta, is expected to extend to the Dhofar Power System by the fourth quarter of 2026, forming a unified national grid and enhancing system resilience.