A team of researchers at Sultan Qaboos University in Oman in conjunction with the Curtin University of Technology in Australia have studied the current state of the electrical power grid in Oman, and have worked out necessary steps towards developing a smart grid from the current status. The team has made thorough interviews with the main stakeholders of the electricity network and has developed a customized pathway for transition of enterprises from the conventional grid to a smart grid. Some recommendations are made with regard to policies, standards, regulatory framework, and enabling technologies. These recommendations can be considered as the building blocks for creating a roadmap for the transformation of the conventional grid to a smart grid in the Sultanate of Oman. Also, in order to develop and test a grid-connected renewable energy program suitable for residential premises, a microgrid prototype was designed and implemented.