Renewable Energy in Oman Attracts New Chinese Partnerships
Key facts
- Oman signed agreements for two battery storage systems totaling 1,000 megawatts with Chinese partners in November 2026
- Namah Holding agreed to develop 500 megawatt storage projects at Duqm and another site with State Grid International
- The Oman Investment Authority signed 23 agreements with Chinese entities during a forum in Beijing in November 2026
- Bilateral trade between Oman and China reached 9.6 billion Omani rials in 2025, with China holding 23.8% of Oman's trade
Oman’s renewable energy sector is preparing to welcome new Chinese investments and partnerships, including the development of solar power projects and the establishment of two battery energy storage systems with a combined capacity of 1,000 megawatts.
According to the specialized Energy Platform (based in Washington), this move is part of 23 agreements and memoranda of understanding signed by the Oman Investment Authority and Omani companies and institutions with Chinese entities on Monday, November 2, 2026, with a total value of billions of dollars.
The agreements were signed during the Oman-China “Investment Partnership Horizons” Forum in Beijing, attended by Sultan Haitham bin Tariq, coinciding with his official visit to China, which aims to expand economic cooperation and attract advanced investments and technologies.
The partnerships cover the renewable energy, mining, manufacturing, logistics, and technology sectors, with a focus on establishing projects within the Sultanate of Oman and transferring industrial expertise to the country.
Renewable energy projects in the Sultanate of Oman
Renewable energy projects in the Sultanate of Oman have secured a new partnership worth $100 million, aimed at developing solar power plants and establishing a solar transformer manufacturing facility. This initiative is designed to strengthen local manufacturing and create export opportunities to regional markets.
The Oman Investment Authority signed a preliminary terms agreement with BCG and Hui Mills to implement the partnership, valued at 38.45 million Omani rials, equivalent to $100 million.
The upcoming factory aims to serve the business sector in the Middle East and North Africa, a move that combines the expansion of clean electricity production with the localization of an industrial component linked to its projects.
In the field of electricity storage, Namah Holding signed a framework agreement with the Chinese company State Grid International Development to cooperate in evaluating and developing two battery energy storage systems, each with a capacity of 500 megawatts.
The proposed systems are located at the Duqm Industrial Station and the Subayhi Station, and are planned to be connected to the national 400-kilovolt electricity transmission grid.
This step aims to enhance the grid’s capacity to accommodate renewable energy generation by utilizing batteries to store electricity and make it available when needed, while the implementation of the two projects remains contingent on the results of the evaluation and subsequent arrangements.
Clean energy investments in the Sultanate of Oman
Oman’s clean energy investments are expanding through partnerships with Chinese investment institutions, aiming to explore new opportunities in energy companies and related technologies.
The agreements include a collaboration between the Oman Investment Authority and Templewater, within a total partnership valued at $260 million. This includes a $200 million joint fund, along with $60 million in investments through an innovation fund.
The partnership aims to explore investment opportunities in energy companies, particularly in clean energy, as well as in technology-related activities, without allocating the full value of the fund to the energy sector.
The collaboration also included eWTP Capital, under a partnership with a total size of approximately $275 million, which encompasses attracting investments in renewable energy, infrastructure, smart manufacturing, and technology solutions.
These developments come amid extensive trade relations between the two countries, as bilateral trade between Oman and China reached approximately 9.6 billion Omani rials ($25 billion) in 2025.
Omani exports to China amounted to approximately 7.7 billion rials ($20 billion), compared to imports valued at 1.9 billion rials ($4.9 billion), making China account for 23.8% of Oman’s total trade, according to official Omani data.
Pvola take
This expansion signals a strong commitment to grid-scale storage in Oman, creating immediate opportunities for developers and investors in the region. The involvement of major state-backed entities like State Grid International reduces perceived execution risk and provides a stable framework for long-term projects. Developers should prioritize partnerships that align with these government-backed initiatives to secure favorable terms and access to critical infrastructure.
Frequently asked questions
What is the total capacity of the battery energy storage systems planned for Oman under the new Chinese partnerships?
The planned systems have a combined capacity of 1,000 megawatts. This capacity is split between two separate projects, each with a capacity of 500 megawatts, located at specific industrial stations in Oman.
Which Chinese company signed a framework agreement with Namah Holding for the development of battery storage in Oman?
State Grid International Development signed the framework agreement with Namah Holding. The cooperation focuses on evaluating and developing two battery energy storage systems as part of broader renewable energy investments.
How does the new investment in Oman affect the local renewable energy project pipeline and industrial localization?
The agreements aim to establish projects within Oman and transfer industrial expertise. This includes the localization of industrial components linked to the projects, supporting the country's goal of expanding economic cooperation and attracting advanced technologies.