Oman battery storage is set to grow by 1 GW through a partnership between Nama Holding and China’s State Grid International Development, as the country prepares to integrate more than 7 GW of planned solar and wind capacity into its electricity system.
The agreement covers two 500 MW facilities in Duqm and Ibri, with both projects expected to connect to the national transmission network at 400 kV. The investment was valued at approximately 384.5 million Omani rials ($1 billion).
The framework agreement was signed during Oman’s investment and economic cooperation discussions with China. It brings together Nama Holding, a subsidiary of the Oman Investment Authority, and State Grid International Development, which is part of the state-owned State Grid Corporation of China.
The proposed facilities would add storage capacity to a power system undergoing a substantial expansion of renewable generation. However, the agreement does not yet establish when the batteries will enter service or how long they will be able to discharge electricity at their rated output.
Where the Oman battery storage projects would sit
The two facilities are planned for Duqm Industrial Station in Al Wusta Governorate and Al-Subaikhi Station, also known as Ibri Solar 3 Station, in Ad Dhahirah Governorate. Each installation is expected to provide 500 MW of power capacity and connect to the transmission network through 400 kV infrastructure.
Their locations place the projects within a wider network of generation and transmission investments. Duqm is an important industrial and energy development area, while Ibri is already associated with utility-scale solar generation. Locating storage at transmission-connected sites could help manage electricity flows and reduce some of the operational challenges associated with integrating additional renewable generation.
The distinction between power and storage capacity remains important when assessing the projects. The announced 1 GW figure describes how much power the systems can deliver at a given time, not how much electricity they can store. The developers have not publicly specified the facilities’ energy capacity in megawatt-hours or their intended discharge duration.
Those details will determine whether the batteries are primarily intended to provide short-duration balancing and grid services, shift midday solar output into evening demand periods, or deliver electricity over longer intervals. Without them, the projects’ contribution to system adequacy and renewable energy utilization cannot be quantified reliably.
The reported investment valuation also needs to be considered alongside the final project specifications. Capital costs per megawatt-hour, financing arrangements, procurement terms and construction schedules will be necessary to evaluate the projects’ economics and compare them with other storage developments in the region.
Oman battery storage and the renewable target
Oman aims to increase renewable energy’s share of electricity generation to around 30% by 2030 and achieve net-zero emissions by 2050. The country’s renewable expansion plans include approximately 5.7 GW of solar power and more than 2 GW of wind capacity scheduled for grid connection between 2027 and 2030, according to reporting on Oman Electricity Transmission Company’s transmission planning.
The government’s March 2026 update on renewable energy development identified approximately 1,550 MW of combined production capacity from operating solar and wind projects, including the Ibri and Manah solar plants and the Dhofar wind farm. The same update identified the Ibri Solar 3 project, expected to enter operation in the second quarter of 2027, as including 100 MWh of battery storage.
That existing pipeline illustrates how storage is being incorporated at different scales. The planned 1 GW Nama and State Grid agreement is separate from the 100 MWh battery component associated with Ibri Solar 3 and from other storage procurements underway in the country.
A separate Oman battery storage procurement
Nama Power & Water Procurement Company is also advancing a separate standalone battery storage program covering five facilities with a combined power capacity of 950 MW and an energy capacity of 3,800 MWh. According to MEED, the program includes a 500 MW, 2,000 MWh installation in Sohar and four additional facilities at other locations in Oman.
Unlike the 1 GW framework agreement, this procurement program has a reported energy capacity, allowing a more direct assessment of its intended storage duration. Dividing 3,800 MWh by 950 MW gives an aggregate ratio of four hours at rated power, although the actual operating profile will depend on the specifications of individual facilities.
The separate program indicates that Oman is pursuing multiple routes to develop storage, rather than relying on a single agreement. The projects should not be treated as operational capacity, however, until construction, commissioning and grid connection have been completed.
Together, the initiatives point to a storage pipeline that could support the country’s renewable energy targets. Their eventual contribution will depend on project delivery, the timing of renewable generation additions and the commercial arrangements governing how the batteries are used.
State Grid and the Oman battery storage deal
The agreement also extends an established relationship between Nama Holding and State Grid International Development. In March 2020, State Grid completed the acquisition of a 49% stake in Oman Electricity Transmission Company, with Nama retaining the remaining 51%. OETC operates the country’s high-voltage transmission network and manages electricity transmission and dispatch.
That ownership structure gives State Grid an existing role in the infrastructure through which the proposed batteries will connect to the electricity system. The partnership could therefore combine investment in storage with experience in transmission network operations, although the framework agreement alone does not establish the final allocation of project responsibilities. For a comparison, see the the IEA overview of grid scale storage and our report on a 102 MW battery added to a solar farm in Victoria.
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