PPA Regulatory Framework in Oman
Oman’s Authority for Public Services Regulation (APSR) has been developing a Direct Sales Framework that allows qualified power generators to sell electricity directly to large consumers. The framework is part of the wider liberalisation of Oman’s power sector and is seen as key to attracting investment in renewables and green hydrogen. AL-DHAW supports developers and clients as a solar EPC contractor in Oman.
Under the sector law, Nama Power and Water Procurement Company (Nama PWP, formerly OPWP) is the single buyer of power from large generators. The Direct Sales Framework would allow “bilateral agreements” signed directly between large consumers and generators, outside the single-buyer model.
The initiative was approved by the Council of Ministers, and APSR then began work on the legal and regulatory framework. Implementation is planned in stages, with APSR assessing each stage to make sure it meets legislative and technical standards and is economically feasible.
Qualified Participants
According to APSR, the first phase covers generators whose power purchase agreements (PPAs) have expired and industrial customers with existing captive generation. APSR said the list of qualified participants may be expanded over time.
The framework must address technical matters such as physical connection, dispatch, metering data and settlement. It must also manage the commercial effects of price signals on existing system users and on the consumers who qualify for direct sales.
Why It Matters for Green Energy Projects
Oman expects to develop several large green energy projects in the coming decades, with tens of gigawatts of renewable capacity planned to power green hydrogen and green ammonia production. Part of the output is expected to be exported, and part used locally by green industries and zero-carbon transport. Direct sales let these projects sell power to industrial users on agreed terms, which supports Oman’s move away from hydrocarbons and helps lower system costs. Read more on green hydrogen in Oman and the 2.7 GW hybrid PPA.
Frequently Asked Questions
What is a PPA?
A power purchase agreement is a long-term contract under which a buyer agrees to purchase electricity from a generator at an agreed price.
Who buys power from large generators in Oman today?
Nama Power and Water Procurement Company is the single buyer of power from large generators under the sector law.
Who qualifies for direct sales in the first phase?
Generators with expired PPAs and industrial customers with existing captive generation, according to APSR.
Related guides: solar PV technical guidelines in Oman and solar PV project technical requirements.
