Oman's 500 MW Ibri III solar project: Jobs and skills for a renewable future

Salim bin Nasser Al Aufi, Oman's Minister of Energy and Minerals, emphasized: "This strategic project, covering an area of nearly 10 million square meters with a generation capacity of 500MW, embodies our commitment to achieving the objectives of Oman Vision 2040 and reaching net zero by 2050"(1). With an investment of around OMR 115 million, the project will reduce carbon dioxide emissions by approximately 505,000 tonnes annually and produce enough electricity to power around 33,000 homes(1).

Table of Contents

• Government commitment to solar energy
• Rapid solar growth and achievements
• Job creation and local talent development
• Vision 2040 and future opportunities
• Why now is the time to enter solar energy

Government commitment to solar energy

Oman has committed to net zero emissions by 2050, with plans to derive at least 30 percent of electricity from renewables by 2030, mainly through solar projects(2). This commitment is backed by concrete financial support. The Oman Investment Authority launched the Sultanate's first investment fund dedicated to the energy transition through a strategic partnership between Future Fund Oman and Templewater(3).

State-owned PDO aims to slash its emissions to 50 percent of 2019 levels by 2030(2), demonstrating how major energy players are aligning with national renewable goals. The minister noted that "with an investment of around OMR 115 million, the project reflects the confidence of our partners and investors in Oman's business environment"(1), showing international validation of Oman's renewable energy strategy.

Rapid solar growth and achievements

The numbers demonstrate remarkable progress. Renewable energy generation grew from 4 GWh in 2015 to 1,670 GWh in 2022, with solar photovoltaic accounting for 93 percent of renewable energy generation in 2022(4). Oman's largest utility-scale solar project, Ibri 2, started commercial operations in January 2022(2), while another 500-megawatt solar photovoltaic power plant led by EDF renewables and Korea Western Power broke ground in September 2023(2).

Over the past fifteen years, Nama Power has successfully developed 26 power generation and water desalination plants, attracting foreign investments of no less than USD 11 billion(1). Looking ahead, the company aims to attract a further USD 5 billion in foreign investments over the next five years, with renewable energy accounting for the largest share. The company plans to add renewable energy capacities of up to 9 gigawatts by 2030, representing around 60% of contracted capacities(1).

Job creation and local talent development

Employment in Oman's renewable energy sector is growing substantially. According to estimates by the International Renewable Energy Agency, 4,400 people in Oman were employed in the renewable energy sector in 2023, with solar photovoltaic accounting for 82 percent of total employment(4).

Minister Al Aufi emphasized that "this project will help the Sultanate of Oman address the energy needs of today, while helping to create new jobs, drive socioeconomic growth and prepare for the growing demands of tomorrow"(1). The commitment to local benefit is institutional. Nama Power and Water Procurement attach great importance to in-country value and the development of small and medium enterprises, through its ICV programme and the allocation of a share of contracted works to local companies, to ensure their economic growth, create job opportunities in the local market, and reduce reliance on external imports(1).

This approach ensures Omani nationals gain priority access to opportunities and develop expertise in solar energy technologies that will be increasingly valuable.

Vision 2040 and future opportunities

Oman Vision 2040 includes the objective of generating 30 percent of electricity from renewables by 2030(1). The Ibri III project will contribute up to an additional 4 percent of renewable energy in the total electricity generation mix(1), with many more projects certain to follow as Oman pursues its 30% target.

The solar energy demand will intensify further. The Ministry of Transport announced that Oman will phase out fuel-operated vehicles and ensure that 79 percent of vehicles in the country by 2035 are electric, with at least 22,000 new electric vehicles by 2040(2). This electric vehicle transition creates additional electricity demand that solar projects will need to meet, ensuring sustained sector growth beyond 2030.

The Minister's statement that the project "delivers an inspiring message that the Sultanate of Oman is steadily advancing towards a sustainable future, built on energy diversification"(1) reflects confidence in continued expansion.

Why now is the time to enter solar energy

The growth trajectory is clear and accelerating. From 4 GWh in 2015 to 1,670 GWh in 2022, with targets requiring exponentially higher capacity by 2030, Oman's solar sector is entering its most dynamic growth phase. Government backing through investment funds, Vision 2040 targets, and institutional policies provides confidence that expansion will continue.

The next 5-7 years are particularly critical as Oman builds toward its 30% renewable target. Those who position themselves in solar energy now will grow alongside the industry, developing expertise that positions them for leadership roles in Oman's sustainable energy future.

References

1. Emirates News Agency (WAM)
2. International Trade Administration
3. Oman News Agency 
4. International Labour Organization