Iraq is considering renewable energy to wean itself off Iranian power reliance, Oil Minister says

Shafaq News/ Iraq is considering the strategic adoption of renewable energy as a way to wean itself off of Iranian imports of gas and power, Minister of Oil Ihsan Ismail said on Sunday.

Speaking at the International Petroleum Technology Conference held in the Saudi capital, Riyadh,  Ismail said, "keeping the power generation dependent on hydrocarbons is costly for Iraq."

"Iraq now [has] shortage in gas. We have bought gas from outside Iraq. So going ahead with solar energy is not only [good for] climate change, it is a commercial issue and we have good space for to develop that. So this is our strategy," he added.

Iraq, OPEC's second-largest producer, needs oil revenues to meet up to 90% of government expenditure.

The country plans to put together a "technical service contract" with Saudi Arabia's utility developer Acwa Power to plug the gap in solar energy in Iraq, Ismael said.

"We have a good deal with TotalEnergies on a pilot project for hydrogen. We have progressed with BP on solar energy. BP is one of the biggest IOCs in Iraq," he added.

Baghdad is pushing through a strategy through 2030 to "freeze" power generation from hydrocarbons to 33 GW and add the remaining required capacities from wind and solar.

Iraq's search for developers willing to invest in renewables in a country with damaged power infrastructure, rampant electricity theft and gas flaring, comes amid growing demand.

"Every year, there is 5% growth in energy consumption," Ismail said.

Iraq has already attracted regional developers such as the UAE renewable energy company Masdar to build up to five solar projects across Iraq.

The country plans to bolster guarantees for more regional and international developers to come and invest not only in hydrocarbons but also in renewable projects.

"There is a sovereign guarantee for any project in solar energy exceeding 500 megawatt. So that is the strategic strategy plan and there is an annual budget to secure the budget for that," Ismail said.