Iraq Aims to Save 250,000 Barrels of Oil Daily Through Renewable Energy Push

Baghdad, Iraq – Iraq has announced plans to save approximately 250,000 barrels of crude oil per day by transitioning to renewable energy sources for electricity generation. This significant move is expected to free up substantial quantities of oil for export, providing a positive impact on the nation's economy, according to Abdul-Baqi Khalaf, Advisor to the Iraqi Oil Ministry for energy affairs.

Strategic Shift Towards Clean Energy

The initiative underscores Iraq's commitment to diversifying its energy portfolio, which has historically been heavily reliant on oil production. The country currently consumes a quarter of a million barrels of crude oil daily to meet its electricity demands. By replacing this with clean energy, Iraq aims to enhance its energy security, reduce its carbon footprint, and combat climate change.

The Iraqi government has set an ambitious target to generate 12 gigawatts (GW) of renewable energy by 2030. This goal is being pursued through a collaborative strategy between the Iraqi Ministry of Electricity and the Ministry of Oil, with a strong emphasis on solar power as a top priority.

Key Renewable Energy Projects Underway

Several major projects and initiatives are central to Iraq's renewable energy strategy:

• TotalEnergies Partnership: French energy giant TotalEnergies is developing a 1 GW solar power project in Basra, with the first 250 megawatts (MW) anticipated to come online by the end of 2025.
• Shams al-Basra: The Iraqi electricity ministry launched the 'Shams al-Basra' (Sun of Basra) solar project, which includes four generating units and two million panels spread across an estimated 9,000 dunams.
• Government Building Solarization: Solar power systems are being installed on 5,000 government buildings, with an initial phase covering 543 structures, including 290 schools and 24 health centers.
• International Agreements: Iraq has signed agreements with the UAE's Masdar for a 1,000 MW solar power plant and is in discussions with Saudi Arabia's ACWA Power for another 1,000 MW facility in Najaf.
• Karbala Solar Farm: A 300-megawatt solar farm featuring half a million panels is under construction near Karbala.
• Financial Initiatives: The Central Bank of Iraq launched a $685 million Renewable Energy Transformation Initiative in 2021 to finance clean energy projects.

Addressing Energy Challenges and Future Outlook

Iraq's energy transition is crucial for addressing its chronic electricity shortages, which are exacerbated by a rapidly growing demand expected to double by 2030. While the country possesses vast oil reserves, renewables currently account for less than 2% of its energy supply. The shift aims to reduce dependence on imported gas and electricity, particularly from Iran, which currently meets a significant portion of Iraq's energy needs.

Despite challenges such as political instability, security concerns, and the need for infrastructure upgrades, Iraq is positioning itself to become a regional leader in sustainable energy. The government's strategic investments and international partnerships are laying the groundwork for a more resilient and environmentally friendly energy future.