Oman should prioritise energy transition policies
SOARING DEMAND: Give precedence to domestic demand reduction over plans to add new energy supplies: Gulf Intelligence survey
Oman, which has tripled its domestic natural gas consumption over the last decade, should prioritise strategies for reducing the national demand for power rather than investing in delivering new energy supplies to meet the country’s soaring call on energy, a Gulf Intelligence survey of 200 Omani energy executives and officials reported.
There is a two-part solution to the Sultanate’s energy transition challenge. The first is reducing emissions stemming from energy supply by increasing the share of zerocarbon energy into the supply mix, such as wind and solar. However, it’s the second solution — moderating growth in demand for energy by radically increasing energy efficiency and productivity — that received the support of 69 per cent of those polled in the GIQ survey conducted in Muscat on November 27.
Oman’s total domestic use of natural gas tripled from 381,519 million standard cubic feet in 2008 to 1,447,422 million standard cubic feet in 2017. The country’s semiarid environment, reliance on airconditioning, rising standard of living, growth in energy-intensive industrialisation, population growth, introduction of new households, and infrastructure investments are factors behind the dramatic increase in domestic demand for energy.
“At some point of time we’re going to be having shortages of gas,” said Salim al Aufi, Under-secretary, Ministry of Oil & Gas, Oman, who also participated in the GIQ survey. “If we don’t pull it all together under a proper energy transition masterplan, we will find ourselves led in directions that we probably need to spend more time recovering from and correcting.”
Oman has one of the world’s highest solar densities and has already made some significant steps towards its Energy Transition strategy in its goal to generate 10 per cent of its power supply from new sources of renewable energy by 2025, and a majority of those surveyed in the GIQ poll were confident that Oman would achieve this target.
The increasing profitability of clean energy activity, especially solargenerated power, has come to drive exponential growth in global annual investment — amounting to more than $333 billion in 2017 — and local jobs to support the deployment of products and services. Households, businesses and governments are now increasingly seeking these new energy solutions due to the real economic value they can provide, and 79 per cent of survey respondents felt Oman risked missing out on the economic rewards available if it didn’t accelerate implementation of new energy transition policies.