Advancing efforts to liberalise its electricity sector, Oman has introduced a regulatory framework allowing renewable energy producers to sell electricity directly to eligible consumers, marking a major shift away from the country's long-standing single-buyer model, the Oman Daily Observer reported on July 20.

The new rules, introduced under Decision 54/2026 by the Authority for Public Services Regulation (APSR), establish a legal framework for direct bilateral transactions between renewable power generators and qualified customers. The reforms are expected to attract greater private investment in clean energy while expanding market opportunities for developers and large electricity consumers.

According to legal experts, the framework represents a landmark step in the evolution of Oman's electricity sector and aligns with the government's broader objectives of increasing private sector participation and accelerating the energy transition under Oman Vision 2040.

The regulations permit "Qualified Sellers" of renewable electricity to supply power directly to "Qualified Subscribers" outside the traditional procurement system overseen by Nama Power and Water Procurement Company (Nama PWP), the state-owned single buyer of electricity generation and water desalination capacity.

Since the introduction of the electricity sector law under Royal Decree 78/2004, Nama PWP has held exclusive responsibility for purchasing electricity generation capacity and output, a model designed to ensure security of supply and coordinated power procurement.

However, the rapid expansion of Oman's renewable energy sector has prompted regulators to introduce greater market flexibility to support investment and facilitate the deployment of new clean energy projects.

Under the new framework, renewable energy projects will be categorised according to generating capacity and developer eligibility. Projects exceeding 50 MW per subscriber will initially be reserved for the National Champion Company under government-approved criteria, while projects between 25 MW and 50 MW, and those ranging from 250 kW to 25 MW, will be open to qualified developers subject to licensing and location requirements.

Smaller projects with capacities below 250 kW will be reserved for small and medium-sized enterprises holding Riyada certification, creating new opportunities for local businesses in distributed renewable energy generation.

Renewable energy developers seeking to participate in the direct sales market must obtain the required generation licences, be registered in Oman and demonstrate that electricity is produced exclusively from renewable sources. Projects exceeding 25 MW will also require approval from the Ministry of Energy and Minerals.

A key feature of the reforms is the removal of regulated pricing for direct sales. Instead, renewable energy producers and eligible consumers will be free to negotiate electricity prices bilaterally, providing greater commercial flexibility and encouraging competition in Oman's emerging renewable power market.