Iraqi minister s approval on energy storage

Should Iraq invest in renewables?

Integrating renewables requires a large investment in grids, and Iraq’s transmission and distribution networks are already dilapidated, with electricity dues largely uncollected, giving rise to technical and commercial losses that exceed 50% of generated power. Adding intermittent solar generation will be a novel challenge.

How has Iraq's energy system changed over the years?

This has introduced a number of vulnerabilities to Iraq’s energy system. For example, payment issues last summer led to Iran cutting exports, significantly exacerbating electricity shortages in Iraq during peak seasonal demand. As oil production has soared, so has the amount of associated gas produced alongside.

Will Iraq be able to connect to the GCC electricity grid?

Another planned power initiative aims to connect Iraq to the GCC electrical grid. This endeavor envisions delivering 1.8 gigawatts of electricity by 2025, stretching from the al-Wafra station in Kuwait to Iraq’s Al-Faw station in the south.

Can Iraq achieve energy self-sufficiency without regional aid?

However, the path to energy sufficiency remains a considerable challenge for Iraq even with regional aid. Without domestic reforms to address the underlying causes of the energy crisis, Iraq’s journey towards achieving energy self-sufficiency is still a considerable distance away.

Did Iraq's power purchase agreements meet nonrecourse financing requirements?

Iraq’s offered power purchase agreements did not immediately meet the nonrecourse syndicated finance requirements of multilateral lenders and banks. Iraq’s failure to pass a federal budget in 2022 meant that no sovereign payment guarantees could be issued to provide assurance of Baghdad’s ability to pay for produced power.