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Sustainable Power in Iraq: Solar Trends Fueling the Future

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Introduction: Iraq’s Solar Revolution

Iraq—traditionally known for its vast oil reserves—is rapidly embracing solar energy to diversify its power mix, boost grid reliability, and reduce reliance on fuels imported from Iran. With international deals, solar villages, and large-scale utility projects in motion, Iraq is on track for a green energy revolution.

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1. National Scale-Up: 1,000+ MW Projects Underway

In May 2025, the Iraqi Cabinet approved two major solar initiatives totaling roughly 3,000 MW plus 500 MWh battery storage, aimed at stabilizing peak demand and strengthening grid resilience.

Additionally, tenders in Wasit province are open for over 3,000 MW of renewable energy installations, showing the state’s strategic shift from conventional power sources.

This expansion supports Iraq’s goal of sourcing 20% of electricity from renewables by 2030, aligning with broader sustainable energy commitments.

2. Large-Scale Utility Plants: Basra & Kirkuk Lead the Charge

Iraq’s solar ambitions include major utility-scale plants:

  • Basra 1,000 MW solar power station: A flagship project in partnership with TotalEnergies, marking one of Iraq’s largest renewable moves.
  • Kirkuk region: Two 250 MW solar farms planned, offering a combined 500 MW capacity to stabilize regional supply.
  • QatarEnergy & TotalEnergies GGIP solar segment: 1.25 GW solar project under the multi-energy GGIP initiative, supported by a 50% stake from QatarEnergy.

These plants are designed not only for electricity generation but also to feed local industries and support flaring reduction efforts within an integrated energy strategy .

3. Solar + Battery Storage: A Grid Game-Changer

The inclusion of 500 MWh battery energy storage systems (BESS) in major solar deals marks a pivotal step in managing Iraq’s peak electricity demand . These systems enable:

  • Load balancing at peak hours
  • Emergency grid support during outages
  • Integration with variable solar generation

Combined solar and battery investments represent a new paradigm for infrastructure-backed power systems in developing economies like Iraq.

4. Institutional & Policy Shift: Government Loans & Strategic Partners

The Iraqi government is enabling solar adoption through:

  • Central Bank’s low-interest financing: Citizens can access loan schemes under a $1 trillion initiative for rooftop and community solar.
  • Development Fund backing: The Iraq Development Fund, with $7 billion in foreign investment, is pushing renewable energy as part of its diversification mandate.
  • International MoUs: Deals with ACWA Power (Saudi), UGT Renewables (USA), and Masdar (UAE) underscores global investor confidence.

5. Solar for Public & Rural Infrastructure

Large-scale solar initiatives extend beyond power plants:

  • 2 MW government Palace array: Inaugurated May 2025, providing clean power to state facilities.
  • 136 schools and healthcare centers: Under contracts totalling $763 million, expanding access to rooftop solar across Baghdad and other provinces.
  • Kulak Solar Village (Kurdistan): An off-grid solar project powering 32 homes, irrigation, and agricultural training—showing solar’s rural resilience value.

6. Integrated Multi-Energy Projects: GGIP as a Blueprint

The GGIP (Gas Growth Integrated Project), led by TotalEnergies (45%), Basrah Oil Company (30%), and Qatar Energy (25%), is redefining energy infrastructure:

  • 1.25 GW solar plant feeding power circuits
  • Gas flare capture and processing
  • Enhanced oil recovery with seawater treatment
  • Electricity generation via solar and gas in Basra
  • Scheduled commissioning between 2025–2028

This holistic model showcases how solar fits into an ecosystem of gas, oil, water, and renewables—delivering energy transition with economic logic.

7. Economic & Environmental Impact

Tangible benefits include:

  • Lower fuel imports: Reduced dependence on diesel generators and Iranian electricity
  • Cost savings: Competitive solar-levelized-cost-of-energy (LCOE)
  • Grid stability: Peak-shaving and reduced blackouts
  • ESG compliance: Solar aligns with climate goals and attracts global capital
  • Job creation: Thousands employed across construction and O&M

President Al-Sudani’s reform vision emphasizes renewables, showcased through robust rooftop solar incentives.

8. Investment Signals & Market Outlook

Iraq’s solar market is forecast to grow dramatically:

  • Ambition to add 12 GW solar capacity by 2030, with 7.5 GW earmarked for utility-scale projects.
  • Interest from 150 firms in solar tenders announced in Summer 2025.
  • Government contracts awarded for 15 solar projects totalling 5,720 MW, boosting national generation capacity.
  • Multinational majors like TotalEnergies, QatarEnergy, ACWA Power, Masdar, UGT, and ZK Holding shaping the landscape.

These indicators point to Iraq emerging as one of the Middle East’s fastest-growing solar markets.

9. Risks & Mitigation Strategies

Key risks include:

  • Political instability compromising updates and cross-regional coordination
  • Grid constraints: Need to modernize transmission networks
  • Financing bottlenecks: Continued central bank and MoI backing is essential
  • Local capacity gaps: Investment in skills, O&M, and rural electrification is critical

Mitigation measures:

  • Structuring public-private partnerships (PPPs)
  • Ensuring investment pipelines via Development Fund vehicles
  • Investing in local workforce training and rural community outreach
  • Designing projects that are solar + grid + solar+battery integrated

Conclusion: Solar as Iraq’s Energy Signature

Iraq’s solar surge—ranging from multi-gigawatt farms to rural mini-grids—is redefining its energy identity. By 2030, renewables will become a core pillar of national energy security. For investors, this sector presents:

  • Large-scale, contracted assets generating long-term revenue streams
  • Strategic diversification away from oil in a volatile market
  • ESG alignment attracting global capital and partnership
  • Growth in infrastructure-linked investment across construction, O&M, grid, battery, and community power systems

As solar becomes Iraq’s solution to grid fragility, economic sustainability, and climate vulnerability, the opportunity for investment and impact is both profound and timely.