For many years, Gulf economies adopted a well-known formulation: produce power, export it overseas and construct development across the revenues that got here again.
Oil left by tanker. Fuel moved by means of pipelines. Financial worth was largely created as soon as power reached overseas markets.
However the subsequent part of world competitors could look very totally different. The international locations that succeed sooner or later could not essentially be those exporting essentially the most power. They could be the ones utilizing power to draw business, know-how and funding at house.
Quietly, Oman appears to be shifting in that route. At first look, the Sultanate of Oman’s newest electrical energy tasks seem simple sufficient — new energy vegetation, transmission upgrades and grid interconnections designed to help future demand. However beneath the technical particulars lies a much bigger financial story.
Oman could also be beginning to shift from exporting power to constructing industries round it.
That issues as a result of electrical energy itself is altering. World wide, it’s changing into greater than only a utility service. It’s more and more turning right into a aggressive financial benefit.
Synthetic intelligence, information centres, desalination, superior manufacturing and low-carbon heavy industries are all anticipated to drive a significant enhance in electrical energy demand over the approaching years. On the similar time, firms are paying nearer consideration to the place they’ll safe steady, inexpensive and lower-carbon energy for the long run.
In some ways, electrical energy is changing into industrial coverage.
That is the place Oman’s present investments begin to tackle larger significance.
Tasks such because the 1,700-megawatt Misfah plant, the 877-megawatt Duqm undertaking and the north-south electrical energy interconnection should not merely infrastructure upgrades. Collectively, they level to the early foundations of a extra electricity-intensive industrial economic system.
The hydrogen-ready know-how deliberate for future era tasks is especially revealing. Whereas hydrogen is commonly mentioned primarily as an export alternative, its deeper worth could lie in giving Oman extra flexibility as the worldwide power system evolves.
The transition away from conventional power techniques is unlikely to occur in a straight line. Fuel, renewables, hydrogen and industrial-scale electrical energy demand are prone to coexist for years. Nations that handle that transition effectively might achieve a long-term benefit.
Oman seems to grasp this.
The north-south electrical energy interconnection could show particularly necessary. Formally, it’s a transmission undertaking linking totally different components of the nationwide grid. In observe, it might reshape the nation’s industrial geography.
A stronger and extra built-in grid improves the long-term attractiveness of locations reminiscent of Al Duqm and Dhofar for manufacturing, minerals processing, logistics and energy-intensive industries. Future traders could more and more look not solely at ports and taxes, but additionally at grid reliability, electrical energy prices and carbon depth.
This might turn out to be considered one of Oman’s greatest alternatives. The Sultanate of Oman already has a number of necessary benefits: strategic ports, industrial zones, renewable power potential and established gasoline infrastructure. However these strengths turn out to be way more invaluable if they’re linked by means of a resilient and future-ready electrical energy system.
Nonetheless, constructing infrastructure alone is just not sufficient.
The actual problem is whether or not Oman can create sufficient financial exercise to soak up this rising electrical energy capability.
Who will use this energy? If the nation succeeds in attracting large-scale manufacturing, digital infrastructure, inexperienced industrial tasks and superior processing industries, at this time’s electrical energy investments might turn out to be one of many foundations of Oman’s post-oil economic system.
But when industrial development and personal funding fail to maintain tempo, a few of the new infrastructure dangers changing into underutilised and financially expensive over time.
That’s the reason electrical energy planning can’t be separated from industrial technique.
The actual worth of Oman’s evolving power system could not finally come from exporting extra power overseas. It might come from utilizing that power extra intelligently at house to create industries, jobs and long-term financial resilience.
For many years, Oman’s economic system benefitted from shifting power outwards.
The subsequent chapter could rely upon what the nation can construct round that power at house.
