Oman is making significant strides in energy storage to address grid intermittency challenges as part of its renewable energy transition. Authorities have identified 10 to 11 locations across the country as potential sites for pumped hydro storage facilities, which could provide up to 18 hours of energy storage.
This development was highlighted in an Advisory Report published by the Ministry of Commerce, Industry, and Investment Promotion (MoCIIP) in collaboration with Oxford Business Group. The report outlines high-growth opportunities in key sectors, particularly energy, and explores advanced solutions like intelligent grid technologies to enhance energy reliability.
Pumped hydro storage is considered a sustainable and cost-effective solution, utilizing two reservoirs at different elevations. During periods of surplus renewable energy, water is pumped from the lower to the upper reservoir. When energy demand rises, the stored water is released, generating hydroelectric power.
Nama Power and Water Procurement Company (PWP), Oman’s single buyer of power and water, is leading the nation’s efforts in evaluating energy storage potential. As part of its Optimum Energy Mix and Storage Options Study, Nama is identifying the most effective technologies to support the country’s energy transition over the next 15 years.
According to the MoCIIP report, Oman must overcome several challenges to ensure a smooth energy transition. These include addressing renewable energy intermittency, developing robust energy export markets, and upgrading the national grid. However, these challenges also present opportunities for international investment and knowledge exchange.
A key initiative supporting renewable energy development is the North-South Interconnection Project, which will unify Oman’s two main power grids by 2027. This integration will improve energy distribution, enhance large-scale renewable projects, and boost storage capabilities, particularly in remote areas.
Additionally, Oman is advancing its ambitious green hydrogen strategy, positioning itself as a leading global producer. The country aims to produce 1 million tonnes of green hydrogen annually by 2030, increasing to 3.75 million tonnes by 2040 and 8.5 million tonnes by 2050—surpassing Europe’s current total hydrogen demand. By 2040, Oman’s hydrogen production is expected to be equivalent to 80% of its current LNG exports, doubling by 2050.
With strategic investments in energy storage and green hydrogen, Oman is reinforcing its commitment to a sustainable, low-carbon future while creating new opportunities for economic growth and international collaboration.