Oman has set an ambitious plan for its electricity future. Oman’s power grid expansion will reach around $2 billion over the next four years. This large investment marks a shift toward modernizing the country’s energy infrastructure. The Oman Electricity Transmission Company (OETC) will lead this effort. It plans to invest RO 840 million, equal to $2.18 billion, between 2025 and 2028. This investment is a significant jump from the previous RO 450 million. This is gathering speed.
Furthermore, one major project under this plan is Phase 2 of the North-South Interconnector. This system links the northern and southern electricity grids. It will reduce dependence on diesel and support gas-powered and renewable energy sources.
Importantly, Oman power grid expansion interconnector allows wider renewable development. Solar and wind power can now be deployed in more regions. Oman’s renewable energy projects will benefit greatly from this improved connectivity.
Earlier this year, OETC confirmed that many upgrades aim to handle more renewable output. These efforts support Oman’s national energy goals. By 2028, Oman plans for clean energy to supply 32.7% of its total capacity. That share may climb to 70% by 2040.
Meanwhile, the grid needs to manage the ups and downs of renewable sources. This challenge makes the Oman power grid expansion essential. It ensures system stability while enabling greener solutions.
Moreover, OETC is 51% owned by Nama Holding and 49% by China’s State Grid. Fitch Ratings has kept the company’s credit stable. However, Fitch warned that leverage could rise in 2026 due to heavy investment. Even so, shareholder backing offers key financial support.
Additionally, Fitch praised the company’s strategy. It noted the balance between spending and shareholder commitments. Yet, analysts still urge close monitoring of debt levels.
Looking ahead, Oman’s power grid expansion remains a national priority. This investment supports clean energy, energy security, and long-term growth.
