As Oman accelerates its transition towards sustainable energy utilisation under Oman Vision 2040, one question remains critical: how do we ensure reliable power for communities far from the national grid? Remote regions such as Musandam Governorate and Al Wusta Governorate face unique challenges, rugged terrain, dispersed populations and high costs of grid extension. Enter microgrids, a localised energy solution that promises resilience, sustainability and independence.

OMAN’S RENEWABLE ENERGY MOMENTUM

Oman’s energy landscape is changing, especially in its remote areas, where microgrids powered by renewable energy can provide a meshed, unified and reliable source of energy. According to Nama Power & Water Procurement (PWP), solar and wind energy accounted for approximately 11.5% of total electricity generation in Oman during the first five months of 2025. This marks a significant increase from 4.9% at the end of 2024.

This period saw renewable energy generation reach 1.88 TWh, approaching the 2024 level when renewables produced 2.4 TWh. Additionally, Oman’s total electricity generation increased by 12.6%, totalling 18,948.9 GWh by the end of May 2025. This increase in electricity generation indicates a rise in power supply for both urban and remote areas of Oman.

WHY MICROGRIDS MATTER FOR REMOTE COMMUNITIES?

Isolated areas commonly use diesel generators to meet electricity demands; however, these are expensive, cause pollution and are hard to get to. There are challenges associated with these generators, where transporting fuel to islands and mountainous areas is more expensive and raises more environmental hazards.

Solar and wind-powered microgrids can remove these challenges and provide reliable electricity to homes, schools and health facilities. Microgrids can also provide more than just basic electricity. They can support essential systems, including telecommunications and desalination, which are vital for community health and economic activity. Additionally, clean and reliable energy can enhance hospitality and draw investment in areas reliant on tourism.

GLOBAL MOMENTUM FOR MICROGRIDS

Microgrids being implemented worldwide are showcasing their effectiveness and versatility. The Red Sea New City Project in Saudi Arabia features a 400 MW solar-plus-storage microgrid, which includes 1.3 GWh of battery storage. This project serves as an international landmark for clean energy generation and utilisation. It ranks among the largest off-grid energy systems globally, playing a crucial role in powering this sustainable tourism destination.

Tesla SolarCity’s microgrid on the remote island of Ta’u in American Samoa provides the island’s only source of electricity, utilising 1.4 MW of solar energy and 6 MWh of battery storage to replace costly diesel imports.

Oman’s energy landscape is changing, especially in its remote areas, where microgrids powered by renewable energy can provide a meshed, unified and reliable source of energy.

Meanwhile, in Alaska, Mission Critical Facilities has implemented 20 modular MicroGENIUS microgrids to supply power to telecommunications towers scattered across hundreds of miles of wilderness. The microgrids function in extreme temperatures of -50°C and can maintain autonomous operation for several weeks, effectively connecting remote communities that previously lacked electricity.

These instances illustrate how microgrids enhance sustainability, foster a social focus within business systems and develop environmentally friendly and climate-adaptive solutions. Such solutions promote luxury tourism, empower isolated islands and help preserve essential services in harsh climatic conditions.

ECONOMIC AND ENVIRONMENTAL BENEFITS

Although the initial costs can be high, the savings from the reduction in fuel imports as well as maintenance costs in the future are significant. Microgrids also provide the opportunity to create installations, operations and maintenance jobs that foster community participation and build technical capacity.

Environmentally, replacing the diesel generators with microgrids powered by renewables will significantly reduce the greenhouse gases emitted. This also goes hand in hand with Oman’s obligations to the Paris Agreement and its national climate action plans.

CHALLENGES AND POLICY RECOMMENDATIONS

Despite their promise, microgrid deployment faces challenges such as high upfront costs, regulatory hurdles and limited technical expertise. To overcome these barriers, Oman can implement several strategies such as:

•Incentivise private investment through tax breaks and subsidies.

•Develop clear regulatory frameworks for microgrid integration.

•Promote public-private partnerships to share risks and accelerate implementation.

•Invest in capacity-building programmes to train local engineers and technicians.

International collaboration can also play a significant role in executing the above strategies. Lessons from countries like India and Kenya, which have successfully implemented microgrids in rural areas, can inform Oman’s approach.

LOOKING AHEAD

Microgrids offer more than just an energy solution; they represent a pathway to resilience, sustainability and inclusive development. For the remote communities in Oman, these systems promise reliable power, a reduced environmental impact and an improved quality of life.

As technology costs decrease and policy support increases, microgrids have the potential to play a pivotal role in Oman’s renewable energy strategy.

Empowering these regions through decentralised energy systems is not only a technical challenge; it represents a significant opportunity to create a future in which every community, regardless of its location, can access clean, affordable and reliable electricity.

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