Ministry of Electricity, Iraq is moving forward on two new solar power agreements. Talks are in the final stage with Saudi Arabia’s ACWA Power to build a 1,000 megawatt (MW) solar plant in Najaf. At the same time, the ministry is working with UAE-based Masdar to build four solar projects across the country with a total capacity of 1,000 MW.
Iraq has recently begun construction on its largest solar power plant to date. The 1,000 MW Basra Sun project broke ground in March 2025. This facility will be one of the largest of its kind in the region once completed.
Iraq is currently facing a shortfall of 4,000 MW in its power supply. This is due in part to reduced natural gas imports from Iran, which has affected the operation of several power plants across the country. The new solar agreements are part of efforts to make up for that gap.
Electricity imports from neighboring countries are also playing a role. According to the Ministry of Electricity, 93% of the Gulf Cooperation Council Interconnection Authority (GCCIA) link is complete. Iraq is already receiving power from both Jordan and Turkey through existing cross-border connections.
In May 2025, Wasit province launched tenders for more than 3,000 MW of new renewable energy projects. These include both wind and solar energy proposals across various districts.
In April 2025, Iraq also signed a separate deal with UGT Renewables, a U.S.-based firm, to develop a 3,000 MW solar power facility. This project includes a Battery Energy Storage System (BESS) with a capacity of 500 megawatt-hours to support the power grid during peak demand.
These developments mark a shift in Iraq’s strategy toward domestic power production using solar technology, energy storage, and international cooperation.
