Tuesday 28 / January / 2025
Muscat: As part of its commitment to environmental sustainability and in alignment with the high standards of environmental, social, and governance (ESG) practices, Oman Electricity Transmission Company (OETC) has recently launched its Green Financing Framework (the Framework).
This strategic initiative aims to support the company’s goals in Oman’s transition towards a low carbon economy, in line with the national objectives of Oman Vision 2040 and the target of achieving net-zero carbon emissions by 2050. The OETC’s Green Financing Framework was structured in collaboration with the “Citi Bank”.
This Framework allows the company to increase its funding potentials through green bonds, sukuks, and green loans, which will be dedicated to green investments in areas such as electricity transmission, renewable energy, energy efficiency, green buildings, sustainable water and wastewater management, and pollution prevention and control. These efforts aim to enhance the reduction of carbon emissions, improve energy security, and ensure grid reliability, among other benefits. OETC is well-positioned for success in this area, with one of its main strengths being its focus on transmitting clean and renewable energy through its nationwide electricity transmission network.
The company has also received a Second Party Opinion (“SPO”) from Det Norske Veritas (“DNV”), which confirmed that the Framework aligns with the latest guidelines of the Green Bond Principles issued by the International Capital Market Association (ICMA), as well as the Green Loan Principles set by the Loan Market Association (“LMA”), Loan Syndications and Trading Association (“LSTA”), and Asia Pacific Loan Market Association (“APLMA”).
Reaffirming OETC's commitment to the low carbon transition, Eng. Saleh bin Nasser Al Rumhi, the CEO of OETC, highlighted the company’s efforts, plans, and initiatives, along with the various projects it is implementing to strengthen the green and renewable energy sector. He also emphasized the meticulous steps the company is taking to grow in this area, adhering to internationally approved frameworks, regulations, and standards.
Al Rumhi added, "Launching OETC's Green Financing Framework is a significant and bold step, and part of the strategies for enabling a more sustainable future for Oman and its economy. This initiative not only enhances our position as a responsible and leading company and as enablers of this green transformation but also supports Oman’s broader objectives and contributes to achieving Oman Vision 2040."
It is worth mentioning that OETC, a member of Nama Group, is the only company responsible for the transmission and control of electricity across the Sultanate’s network. The electricity is transmitted from production stations to distributed load centers in the governorates. The transmission network operates at a voltage of 132kV and above to cover most of the governorates in the Sultanate, whether in the north or the south. Furthermore, OETC manages the interconnection lines between Oman and the GCC interconnection network, which operates at a voltage of 220kV.
