Oman Electricity Transmission Company (OETC) has allocated $2.2 billion to implement 32 strategic projects aimed at expanding and modernizing the Sultanate’s national electricity grid over the 2024–2028 period.
The investment, detailed in OETC’s latest report, will support Oman’s growing renewable energy ambitions, enabling efficient integration, transmission, and dispatch of solar and wind-generated power from new energy projects across the country.
Supporting Clean Energy Growth
This capital commitment builds on $1.2 billion already invested between 2019 and 2023 in grid infrastructure upgrades. Together, both phases are intended to support new generation capacity, ensure grid stability, and manage growing demand—all while aligning with national energy security and decarbonization goals.
OETC highlighted its vital role in managing the intermittency of renewable energy as Oman moves to boost clean energy’s share from 5.9% of installed capacity in 2024 to 32.7% by 2028, with a long-term goal of reaching 70% by 2040.
To meet these targets, Nama Power and Water Procurement Company (PWP) plans to procure more than 4 GW of solar and wind power through Independent Power Projects (IPPs) by 2029.
Rabt Interconnect Project: A National Milestone
A centerpiece of this transition is OETC’s North-South Interconnect Project (Rabt), which will integrate the Main Interconnected System (MIS) in the north with the Dhofar System in the south. This interconnection will:
Improve access to renewable-rich areas,
Enhance grid efficiency and stability,
Reduce Oman’s carbon emissions,
And contribute to the country’s Net Zero Emissions (NZE) goal by 2050.
The project is expected to result in the closure of 14 diesel-powered plants, saving 175 million litres of diesel annually and cutting emissions by more than 474,000 tonnes per year—translating to cost savings exceeding $170 million.
Ownership and Network Capacity
OETC is 51% owned by Nama Holding (Oman’s state-run utility investment arm) and 49% by State Grid International Development Ltd (SGID), a subsidiary of China’s State Grid Corporation, the world’s largest electricity transmission company.
The company’s grid spans over 95% of Oman’s electricity market, comprising 113 grid stations and over 10,066 km of transmission lines—a significant expansion from just 3,806 km in 2010. The network includes 132kV, 220kV, and 400kV overhead lines and underground cables.
Source: Oman Daily Observer
