Iraq signs deal with Abu Dhabi's Masdar for 2 GW of solar power projects

Iraq has signed an agreement with Masdar, the renewable energy arm of Abu Dhabi's sovereign wealth fund, to develop at least 2 GW of solar projects in the country, the two sides announced June 25.

Iraqi officials said the agreement would help further the country's goal of generating 20-25% of its energy from renewables, equivalent to 10-12 GW by 2030. The projects will be located in central and southern Iraq, which suffers from acute electricity shortages, especially during the summer, when hot temperatures create high air conditioning demand.

"The project ensures clean and sustainable energy production for different areas in Iraq, and displaces carbon dioxide emissions resulting from fossil fuel generation," said Suha al-Najar, president of Iraq's National Investment Commission, who signed the agreement in a virtual ceremony with Iraqi electricity minister Majid Hantosh and Masdar CEO Mohamed al-Ramahi. "The project will also provide new jobs in the energy sector, with the manpower for project construction and operation beyond 2,000."

No financial terms were disclosed.

Iraq generates a significant portion of its electricity by burning crude and fuel oil in its power plants but is aiming to reduce those volumes so they can be exported for much-needed revenue instead.

According to Iraq's State Oil Marketing Organization, the country consumed 486,000 b/d of crude oil in May, including for refinery runs and power generation, though independent observers say that volume is likely much higher.

Masdar said it has renewables projects capable of generating more than 11 GW in more than 30 countries, with a total value of $20 billion.