The Role of Sustainable Development and Renewable Energy in Contemporary Oman By Amy Whight Since the renaissance in 1970, HM Sultan Qaboos has been repeatedly calling for sustainable development in order to bring stability and prosperity to the Sultanate of Oman. Sustainability has long-suited both an Islamic and Omani mindset as being guardians of the earth and preserving the environment are central pillars of religious and cultural heritage.
However, rapid industrialisation and urbanisation following the oil boom in the ’70s gave way to an era of comfort and luxury that had previously been inaccessible. A higher quality of life became a priority over environmental sustainability and energy consumption soared. According to the International Renewable Energy Agency’s Assessment of Oman in 2014, not only has oil consumption almost doubled since the early 2000s, but electricity use has increased in accordance with GDP, and the use of natural gas residentially has more than tripled.
A lack of energy efficiency is problematic in the Sultanate as new developments are no longer contextual to previous sustainable lifestyles. Traditional Omani architecture dating back to the 13th century, which built-in shaded areas using compressed earth and mud blocks and water circulation systems, has been disregarded and construction methods replicate environmentally unsuitable western-style buildings. Although Oman’s architectural heritage is a huge source of pride, reintroducing sustainable initiatives are frequently associated with poorer lifestyles before the oil boom, where wealth has been used to erase the memory of poverty. Currently, energy efficiency is least tackled residentially even though it is the largest consumer of electricity in Oman. Cavity wall insulation which used to be at the core of traditional Omani houses are the most basic practice to sustainable development, as demonstrated by a study conducted by AER and UCL which found that adding insulation to housing cut energy demand by up to 20%. However, such a basic building technique is being ignored as building regulations do not stipulate sustainable U-values. This means that domestic consumption of electricity to regulate indoor temperatures often outstrips natural gas production, leaving households to deal with power cuts and shortages.
Another factor that hampers efforts to transition towards renewable energy use in Oman is that electricity is hugely undervalued. Low domestic gas prices in the Sultanate have been a key policy instrument to promote economic growth and diversification, and the Ministry of Finance grants financial subsidies for both the generation and distribution of fossil fuels. In 2015, the financial subsidy amounted to over 45% of the costs of producing and supplying electricity. Furthermore, the cost at which fuel is sold for electricity generation is far below the economic opportunity cost of fuel in the international market. With electricity as cheap as it is, consumers have less incentive to monitor the amount of electricity they are using.
Oman’s increasing population size and infrastructural expansion have meant that energy consumption figures steadily increase whilst national fossil fuel resources are depleting. In combination with the 2008 global economic crash, there was a need to investigate alternative energies in order to reduce dependency on oil and gas reserves in Oman. AER studies found that solar and wind power had the most potential for high electricity generation. Both the public and private spheres have been testing renewable energy initiatives for a few years, which has ranged from small-scale pilot studies usage such as photovoltaic cells (PV) that power some street lights and parking meters, to the large-scale such as Petroleum Development Oman’s (PDO) partnership with Glasspoint in Miraah which generates solar steam for enhanced oil recovery.
One of the most significant pilot studies, however, has been the 2015 winner of The Research Council’s Eco House competition, HCT’s GreenNest Eco House, which successfully addressed issues with both energy consumption and efficiency in the residential sector. Instead of sun-exposed solid walls and curtains which trap heat, northward-facing optimises natural light and ventilation whilst using vegetation to shade windows and doors. PV solar systems placed on the rooftop and on household appliances also generate enough energy to power the house several times over. Despite the fact that this excess electricity is unable to be sold to the grid yet, it demonstrates that with the right infrastructure and policies in place, more than enough electricity could be produced to sustain a modern Omani family’s needs. Whilst initial renewable energy technology costs are higher in the short-term, excess electricity could also be sold to the grid to provide an income and work of the costs of renewable technology. With the continuing fall of oil prices, now is the time to be innovative about energy initiatives.
A step that could be taken in order to allow for a growing renewable energy market is to adjust fossil fuel subsidies in order to allow renewable energy to compete against the oil and gas sector. Such cheap electricity has made people unaware of the global cost of oil and gas and has encouraged electricity wastage. A solution may not need to be the removal of subsidies, but could instead be subsidy reinvention to promote renewable energy initiatives such as net metering, investment subsidies or tax incentives. This could help to mitigate initially high energy costs when transitioning to green technology as otherwise people may be little inclined to make the switch to clean energy.
It is also fundamental that a real national target is set for renewable energy use. It was previously suggested that renewable energy should account for 10% of Oman’s national energy by 2025, however, this was never approved and discussions remained in limbo. One of the biggest challenges will be to establish better communication between the various governmental consulates, private businesses, and academic researchers as it remains unclear who has been pushing renewable energy plans forward in Oman. This has meant that policies are slow to be produced and has restricted Oman from acting like a real market for sustainable development. Slow progress could have serious implications for the Paris agreements, which are currently not being adhered to properly. Although AER has recently announced a completed final draft of the new regulatory framework for small-scale solar PV systems connected to the grid, which will give customers permission to install solar PV systems and export surplus to the grid, which is hugely encouraging, policy implementation is yet to take place.
As well as subsidy and policy adjustment, the Omani population will need to be ready to fully embrace renewable energy use in Oman. HM Sultan Qaboos’ push for SME development could be tied to renewable energy development in order to encourage millennials to generate ideas for new technologies. This could help to break the myth amongst younger generations that sustainability and luxury are incompatible with each other. Whilst comfort levels will need to be reassessed, this does not necessarily mean for the worse, as the HCT EcoNest has demonstrated. Sustainable living needs to be experienced in order for people to accept lifestyle adjustments such as renewable energy use, and the best way to do this is through educating younger generations. There are some fantastic enterprises taking place in Oman such as Electricity Holding Company’s corporate responsibility project, Nama Estidama which turn youths in to ambassadors of leading green lives and working on renewable energy projects during the summer months, and Outward Bound Oman, which holds leadership programmes for youths in the desert which is 100% powered by renewable energy. However, programmes involving younger generations need to be made more accessible on a much larger scale to youths throughout Oman in order to awaken public awareness to the fact that sustainability can suit Omani culture, traditions and modern lifestyles, both residentially and commercially.
Oman does not seem far away from making the switch to renewable energy however greater collaboration between all energy stakeholders is essential in order to realise that renewable energy is the best solution to conserving Oman’s natural heritage and helping to guarantee a secure energy supply in the long-term.
A huge thank you to the following people, who gave up their valuable time to discuss the importance of sustainability with me:
Nadia Maqbool – Architect and Director of 23 Degrees North
Muna Al Farsi – Project Manager of HCT GreenNest Eco House
Bushra Al Maskari – Senior Specialist at Authority for Electricity Regulation
HE Sultan Al Harthi – Special Advisor to the Supreme Council for Planning
Hilal Al Ghaithi – Deputy Director of Customer Affairs at Authority for Electricity Regulation
Dr Ahmed Al Busaidi – Manager of RE Strategic Research Programme at The Research Council
Omar Al Wahaibi – Group CEO at Nama Holding
Abdullah Al Shekaili – Sustainability, Corporate Affairs and Marketing at Nama Group
Juman Al Saqlawi – PhD candidate at Imperial College, Centre for Environmental Policy
Amy completed The British Omani Society Internship from July 2016 to January 2017.