Tuesday, March 31
09:33 PM

Oman plans RO8.8bn investment in utilities by 2030

31 Mar 2026 Oman plans RO8.8bn investment in utilities by 2030

Muscat – Compensation paid to subscribers will be doubled if utility companies repeatedly fail to meet approved service standards, the Authority for Public Services Regulation (APSR) has said, as it outlined measures to strengthen consumer protection in Oman’s utilities sector.

The announcement was made during the regulator’s annual media briefing on Tuesday, where officials also detailed plans for RO8.8bn in investments across regulated sectors between 2026 and 2030.

Dr Mansour bin Talib Al Hinai, Chairman of the APSR, said the water and sanitation sector recorded growth between 2021 and 2025. Water consumption rose by 13%, while the number of subscribers increased by 12%.

In the electricity sector, subscriber numbers grew by 14% and consumption rose by 27%, reflecting economic and urban expansion.

Al Hinai said the share of renewable energy in total electricity production increased to 9.46% by the end of 2025, up from 1.95% in 2021. Current renewable capacity is sufficient to meet the needs of about 155,000 households.

He said all services provided by the authority have been fully digitised. Smart meter adoption has reached 99% in the water sector and 80% in electricity. Actual meter readings stand at 97% for electricity and 97.71% for water.

Compensation paid to beneficiaries in 2025 totalled RO153,000, benefiting around 9,000 subscribers. He added that disconnection of services remains a last resort. “No service has been disconnected for any subscriber during the past five months,” he said.

Looking ahead, the authority plans to implement three strategic projects in 2026 to enhance service quality and strengthen the energy system. These include support for continuous renewable energy production using battery storage, a demand response management programme to optimise electricity consumption, and further improvements to service guarantee standards.

Hassan bin Mohammed Al Lawati, Director General of Economic Regulation and Markets at the APSR, said investments in regulated sectors reached around RO3bn during 2021–2025.

Of this, RO1.7bn was allocated to electricity, RO1bn to water, and about RO300mn to gas transmission.

Investment is projected to increase in the next five-year cycle. Total planned spending stands at RO8.8bn, with electricity projects accounting for RO7bn. Water and wastewater will receive RO1.3bn, while RO500mn is earmarked for natural gas transmission.

Al Lawati said the Renewable Energy Continuous (RTC) project aims to supply electricity from renewable sources around the clock to enhance stability in the national energy mix. Battery energy storage projects are also being advanced to store electricity generated during low demand and feed it back into the grid during peak hours.

Planned Investments 2026–2030

RO8.8bn – Total utility investments

RO7bn – Allocation for electricity

RO1.3bn – Allocation for water and wastewater

RO500mn – Allocation for gas transmission

Key statistics for 2021–2025

RO3.4bn – Total utility investments

27% – Rise in electricity consumption

14% – Growth in electricity subscribers

13% – Increase in water consumption

12% – Growth in water subscribers

9.46% – Renewable share in power mix

© 2021 Apex Press and Publishing. All Rights Reserved. Powered by Mesdac