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Oman’s OQ commits $2 billion to energy transition with 300MW renewable projects launch

The projects are part of a broader collaboration between OQ Alternative Energy (OQAE) and France’s TotalEnergies

Oman’s state-owned energy conglomerate, OQ, has approved the development of three major renewable energy projects totaling 300 megawatts (MW) to support the Sultanate’s transition towards sustainable energy sources.

The approved projects comprise the 100 MW North Solar plant in Saih Nihaydah and two 100 MW wind farms, Riyah-1 and Riyah-2, situated in the Amin and West Nimr fields.

The projects are part of a broader collaboration between OQ Alternative Energy (OQAE) and France’s TotalEnergies, with Power China appointed as the engineering, procurement, and construction contractor.

The consortium aims to commence construction in early 2025, with operations expected to begin by late 2026, according to an announcement made during Oman Sustainability Week 2025.

Collectively, the projects are expected to generate approximately 1.4 terawatt-hours of electricity annually, supplying power to Petroleum Development Oman (PDO) under long-term power purchase agreements.

This output is projected to reduce carbon dioxide emissions by nearly one million tonnes per year and conserve significant volumes of natural gas, aligning with Oman’s Vision 2040 objectives for a diversified and sustainable economy.

In addition to these developments, OQAE has entered into several strategic agreements to bolster the renewable energy sector. These include partnerships with United Solar for a 700 MW project to power the Sohar Polysilicon Plant, Jindal Renewables for a 500 MW initiative serving industrial facilities in Suhar and Duqm, and preliminary accords with Oxy Zero In and Vale for projects totaling 245 MW aimed at supporting operations in Block 09 and Vale’s facilities, respectively.

“These strategic partnerships will catalyse Oman’s clean energy ambitions, accelerate the transition to net zero, and position the Sultanate as a regional leader in green energy,” OQ said in a statement.

OQ has also signed a strategic cooperation agreement with Mitsubishi Heavy Industries to explore advancements in energy technology and decarbonization efforts.

Aziizi Tumusiime

Aziizi Tumusiime is a lawyer by training and a journalist by profession. He holds a wealth of experience in technology, logistics, and utilities. With a passion for storytelling, Aziizi has excelled as...