An aerial image of a solar power project in Basra. File photo:Iraqi electricity ministry

An aerial image of a solar power project in Basra. File photo:Iraqi electricity ministry

ECONOMYMay 29, 2025

Iraq close to Saudi, Emirati solar deals: Electricity ministry

ERBIL, Kurdistan Region - Iraq’s electricity ministry on Thursday announced it is nearing agreements with two Gulf companies to build solar power plants as the country seeks alternatives to Iranian energy imports amid worsening power shortages.

“The ministry is close to signing a contract with the Saudi company ACWA Power to build a 1,000-megawatt plant in Najaf, and also with the Emirati company Masdar to build four plants with a total capacity of 1,000 megawatts,” ministry spokesperson Ahmed Musa told Iraqi state media.

ACWA Power is a Riyadh-based energy firm, while Masdar, based in Abu Dhabi, specializes in renewable energy.

Musa said solar panel projects are already underway in the provinces of Basra, Muthanna, Karbala, Babel, and Dhi Qar.
Despite having vast oil and gas reserves, Iraq faces chronic electricity shortages, particularly during the scorching summer months when demand far outpaces supply.

At peak times, the country can generate up to 27,000 megawatts of electricity but still faces a 19,000-megawatt shortfall, with total demand nearing 48,000 megawatts, Musa told Rudaw in July.

Related Articles

For years, Iraq has relied on Iranian gas to power its electricity grid, but this dependency has made it vulnerable to US sanctions and periodic supply disruptions. In March, Washington revoked a sanctions waiver that had allowed Iraq to import electricity from Iran.

Following the waiver’s expiration, Iraqi Prime Minister Mohammed Shia’ al-Sudani held meetings with energy officials to explore alternatives, including utilizing domestic natural gas and importing electricity from Jordan, Turkey, and Turkmenistan.

Musa on Thursday said a significant decline in Iranian gas deliveries has led to the shutdown of several power plants, costing the country about 4,000 megawatts in lost production.

“The ministry has lost approximately 4,000 megawatts, and this loss during these times affects the hours of supply,” he said. The current output stands at 23,000 megawatts.


SuggestedQuestions