MUSCAT — The real hurdle to accelerating renewable energy in Oman isn’t a lack of technology or ambition—it’s the complexity of existing regulatory frameworks, according to a senior government official speaking at the Oman Petroleum & Energy Show (OPES) this week.
This statement was made by Dr. Firas al Abduwani, Director General of Renewable Energy and Hydrogen at the Ministry of Energy and Minerals (MEM), at a panel discussion organized by the Society of Petroleum Engineers (SPE) with the topic “Innovation in New Energies to Enable the Transition.
“Everyone asks why we’re not seeing more renewable projects take off, and the answer is almost always ‘the policy,’” said Dr. Al Abduwani. “But what’s often overlooked is how multi-layered and technically complex these policy decisions actually are. It’s not simply a matter of ambition—it’s about building systems that reflect economic realities, inherited infrastructure, and affordability for both consumers and industries.”
Legacy Systems and Subsidy Barriers
Dr. Al Abduwani emphasized that Oman’s energy system is deeply tied to its natural gas resources, which remain heavily subsidized and embedded across various sectors—from electricity production to industrial usage and household consumption.
“In Oman, gas isn’t just a traded commodity—it’s a social good,” he noted. “It anchors our electricity tariffs and serves as vital industrial feedstock. Attempting to overhaul that overnight would be like changing the tires of a car while it’s moving.”
He revealed that the country still spends over $1 billion annually on fossil fuel subsidies, reinforcing how entrenched these systems are in the national economy.
Regulatory Agility Is Key
For a meaningful and credible energy transition, Dr. Al Abduwani argued that Oman must develop more agile, adaptive regulatory frameworks that enable real-time interaction between power generators, consumers, and the national grid.
“To create a level playing field for renewables, the system needs to be unbundled and de-subsidised with surgical precision,” he said. “We need dynamic pricing and flexible grid access—modern policy tools that reflect a decentralised energy future.”
He cited Germany as an example of a country that gradually restructured its energy market over a decade, giving industries time to adapt to new rules. While not a model to replicate entirely, it serves as a valuable case study in sequencing reform.
“Oman must carve its own path,” he added. “But learning from global transitions can help us avoid unnecessary pitfalls.”
A Just and Inclusive Transition
Dr. Al Abduwani also warned that energy transitions must be handled with care to avoid public resistance or economic disruption.
“You can’t expect households or businesses to shoulder sudden cost increases,” he cautioned. “Any transition must be inclusive, just, and based on robust data.”
He called for a coordinated approach involving regulators, consumers, industries, and financial institutions to ensure reforms are synchronized and socially sustainable.
“Policy-making isn’t just about drafting new laws—it’s about managing difficult trade-offs between energy security, affordability, and environmental sustainability,” he said.
The high-level OPES panel drew a diverse audience of government officials, energy executives, and global experts. It forms part of ongoing national discussions aligned with Oman’s Vision 2040, which prioritizes renewable energy development and ambitious goals for green hydrogen production.
