Iraq approves 7.5 GW solar power project
Iraqi PM calls for activation of Future Generations Fund
Iraq on Wednesday approved plans to build a 7.5 GW solar power project, Asharq reported.
The government said it will award 10-12 GW of solar power projects through 2025 as it seeks to generate up to 25 percent of its power needs through solar energy.
Iraq’s Ministry of Electricity signed on Aug. 25 a contract with China’s state-owned PowerChina to build its first solar power plants with a capacity of 2 GW.
Iraq has been exploring ways of becoming less reliant on energy imports, following increasing pressure by the US to loosen ties with Tehran.
Across the country as a whole, energy supplies are still well below the required amount.
There are concerns that this year’s energy issues will lead to a repeat of 2018, when widespread protests brought the country to a standstill, toppled the government, and saw hundreds of protesters shot by police and militia operatives. Those protests also coincided with Iranian power cuts over non-payment issues.
The US State Department early in August granted another sanctions waiver allowing Iraq to import Iranian electricity until the end of this year as it struggles with frequent power outages and lack of domestic generation capacity.
The Iraqi Cabinet also approved transferring all unused money from the nation’s electric energy import fund, estimated at $300 million, to cover part of the deficit in fuel purchase allocations.
Prime Minister Mustafa Al-Kadhimi called on Wednesday for the activation of the Future Generations Fund, the Cabinet said in a statement.
Iraq is working to establish a fund to help wean the economy off dependence on oil, which will be financed through the budget surplus, Mazhar Saleh, the prime minister’s adviser, has said previously.
An increase in the capital of the Industrial Bank of Iraq by 150 billion Iraqi dinars ($103 million) was also approved during the session.