OPEC oil producer Iraq intends to award a new project for the construction of a solar power plant with a generation capacity of 700 megawatts, the country’s Electricity Minister Ziyad Ali Fadel was quoted as saying on Friday, as per media reports.
The minister noted that the Cabinet would approve the project on Tuesday and authorize the Electricity Ministry to award the contract. He did not identify the company selected for implementing the project. However, he noted that it follows the same procedure that awarded a similar contract to PowerChina for the construction of a 750-MW solar power station in the Southern Al-Muthanna Governorate.
Fadel said an energy agreement signed with France’s TotalEnergies this week would also add 1,000 MW to Iraq’s burgeoning solar power network.
Recently, Iraq signed a $27 billion energy deal with TotalEnergies aiming to increase oil production and boost the country’s capacity to produce energy with four oil, gas and renewables projects. Notably, the country aims to generate 12 GW of renewable energy by 2030. In 2022, Iraq awarded 1 GW of solar to the UAE’s Masdar and 630 MW of solar to Chinese companies
Iraq holds great potential for renewable energy with its ample solar irradiance, economically viable wind speeds in certain areas, and the possibility of geothermal development in hot springs (subject to technical assessments). By harnessing renewable energy sources for power generation, Iraq can enhance its energy security and mitigate greenhouse gas emissions in the power sector. The country’s heavy reliance on fossil-fuel-fired power plants and extensive use of polluting diesel generators currently account for almost half of Iraq’s total emissions.
Iraq is one of OPEC’s largest crude oil producers, second only to Saudi Arabia, with 17 per cent of Middle Eastern oil proven reserves and 8 per cent of global reserves. Iraq’s electricity sector is almost entirely dependent on fossil fuels, which account for more than 80 per cent of power generation.
