Climate change has emerged as one of the greatest challenges for modern society. In Oman we are tackling climate change by being more energy efficient. 98% of the electricity in Oman is produced from natural gas, the rural areas in Oman are supplied with electricity from diesel. Electricity is transmitted and distributed by using overhead electricity lines and in some places via underground cables.
Electricity is subsidised in Oman. It is believed this is a big factor that leads to inefficient use of electricity. Oman applies a flat rate for electricity prices throughout the day. This does not incentivise people to manage their consumption. A customer on average only pays 60% of the economic cost of electricity while the other 40% is paid by the Government in the form of a subsidy for the general public. Oman uses local natural gas to generate electricity and inefficient use of electricity will just expedite the depletion of this finite source of energy.