Iraq's renewable energy investment needs reach $50 billion over the next decade

Iraq has embarked on an ambitious energy diversification plan
.
According to the plan, by 2028, the country will invest more than $50 billion to provide 10% of its energy needs
from renewable sources by developing large-scale solar, wind and biomass facilities.

According to a new report from Frost & Sullivan, the war-torn country, which is rich in solar and wind resources, is now looking to diversify its energy dependence from fossil fuels and strengthen its energy mix
over the next decade.

Iraq suffers from severe power shortages due to insufficient power generation capacity and increasing demand, and is now expanding its capacity
.
ISIS's offensive in June 2014 reduced available generation capacity from 28,680 MW to approximately 24,020 MW.

The report notes that while demand was 17,000 megawatts, electricity output averaged less than 11,300 megawatts
in 2017.

Power availability for public networks is less than 15 hours/day
.
This has forced Iraqi citizens to rely on private diesel generators to fill the gap
.
Considering the current electricity demand growth rate of 6%, the country needs an additional 20,000 MW of capacity to meet more than 32,500 MW of demand
by 2028.

Frost & Sullivan said in Energy Practices that giving sustainable electricity will be an important part of
efforts to rebuild Iraq's economy.

The organization added that the country expects to provide more than 10 percent of its energy needs through sustainable resources by 2028, through the construction of large-scale solar, wind and biomass facilities
.

"In order to achieve a sustainable economy, Iraq's power infrastructure needs to invest heavily in capacity expansion, retrofit, efficiency enhancement, and renewable energy-based generation capacity," said Ali Mirmohammad, senior consultant and business development manager at Frost & Sullivan.

”

"In Iraq, this power development program requires more than $50 billion over the next decade, which presents a huge opportunity
for companies supplying the industry.
"

Frost & Sullivan said Iraq has large natural gas reserves that could be used to develop combined-cycle gas turbine equipment
.
With an average of 5.
6 kWh/square meter/day, Iraq has more than 3,000 hours of intense light exposure per year, providing important opportunities
for solar energy development across the country.

In addition to the World Bank, the country's renewable energy and energy efficiency development program has now been awarded the International Renewable Energy Development Program.
Strong support
from the Energy Agency (Irena), the United Nations Development Programme (UNDP) and the Regional Centre for Renewable Energy and Energy Efficiency (RCREEE).
Iraq's installed capacity is expected to exceed 5 GW of solar, about 1 GW of wind and about 0.
2 GW of bioenergy
by 2028.

Frost & Sullivan said in its report that in terms of the federal budget deficit, the Iraqi government simply cannot provide the necessary investments
in the renewable energy sector through self-sufficiency.
Therefore, in order to involve the private sector and promote foreign direct investment, the government is providing important incentives and initiatives
to investors in this field.
This includes tax holidays, customs incentives, preferential tariffs for investors, land rights and infrastructure, NIC support for obtaining permits and licenses, and some guarantees
for eligible projects determined by the Ministry of Finance (MoF).