On November 2, 2026, Nama Holding, a subsidiary of the Oman Investment Authority, signed a framework agreement with China's State Grid International Development to develop two utility-scale battery energy storage systems. The agreement is valued at roughly $1 billion and will deliver a combined capacity of 1 GW. The two 500 MW installations will connect to Oman's national transmission network at 400 kV.
The two battery plants will be located at the Duqm Industrial Station in Al Wusta Governorate and the Al-Subaikhi (Ibri Solar 3) Station in Ad Dhahirah Governorate. Both facilities will integrate with the Oman Electricity Transmission Company's 400 kV grid, allowing them to store excess solar or wind power and discharge it during peak demand or periods of low renewable output.
The framework agreement is a significant step towards achieving Oman's renewable-energy strategy, which aims for 30% of electricity from renewables by 2030. Currently, renewables account for about 4% of Oman's electricity, and projected demand could reach 10 TWh by 2031. The Duqm-Ibri storage project complements other Omani initiatives, including a separate 950 MW battery programme and the Ibri III solar-plus-storage plant.
The Duqm-Ibri storage project is a major collaboration between Oman and China, with State Grid's participation building on its 2020 acquisition of a 49% stake in the Oman Electricity Transmission Company. This partnership extends the China-Oman partnership into large-scale energy storage, marking a significant development in the region's energy sector.
The agreement does not disclose the battery chemistry, storage duration, or detailed engineering designs, and it provides no confirmed construction start or commissioning dates. However, the project is expected to bolster Oman's grid reliability and support the country's renewable targets.
The project's significance extends beyond Oman's borders, as it demonstrates the growing importance of energy storage in the region. With increasing demand for electricity and a push towards renewable energy, large-scale battery storage systems are becoming increasingly crucial for grid flexibility and reliability.
The Oman-China partnership on the Duqm-Ibri storage project is a notable example of international cooperation in the energy sector. As the project moves forward, it will be closely watched by industry stakeholders and observers, who will be keen to see the impact on Oman's energy landscape.
Key points
- The project aims to support Oman's renewable-energy strategy, which targets 30% of electricity from renewables by 2030.
- The agreement is valued at roughly $1 billion and will deliver a combined capacity of 1 GW.
- The project complements other Omani initiatives, including a separate 950 MW battery programme and the Ibri III solar-plus-storage plant.
