Iraq
With a cumulative score of 1.22, Iraq ranks number 79 among emerging markets and number 108 in the global ranking.
- Emerging markets
- Middle East & Africa
1.49 / 5
Power score
0.58 / 5
Transport score
Buildings score
Only 56 markets (28 emerging markets) are scored on the Buildings sector. See the full list on the methodology page.
Low-carbon strategy
Net-zero goal and strategy
Iraq does not have a net-zero goal or strategy.
Nationally Determined Contributions (NDC)
The country does not have a Nationally Determined Contribution as its official plan to cut emissions under the Paris Agreement.
Fossil fuel phase-out policy
Iraq does not have a fossil fuel phase-out plan. It does not have enough alternative capacity to phase out its fossil fuel plants.
Power
Power policy
Iraq is aiming for 2.24 gigawatts of electricity generation from renewable energy by 2025. The country has attempted to achieve this capacity through a tender process, replacing the feed-in tariff policy. The 2016 tender was unsuccessful, and the 2019 tender has experienced significant delays due to Covid-19. There was a tender in 2021 but the contracts have not been awarded to date. The government reserves the right to delay power purchase agreement (PPA) payments.
Power policies
Power prices and costs
Iraq also has utilized import tax and VAT tax exemptions to increase renewables generation. This exemption is for a period of time. There is no specification for the types of technologies that are included.
Iraq government tariffs are set annually. Independent power producers have a PPA or fixed tariff with the Ministry of Electricity. The government subsidizes power prices for all customers, totaling $6.5 million a day. Diesel, kerosene, and crude oil are also subsidized by the government.
Power market
All segments of Iraq’s power market are dominated by the Ministry of Electricity, with only a handful of distribution companies selling power under its umbrella. Independent power producers sell to the ministry, so retail is de factor dominated by the Iraqi state. In a few cases, consumers can buy directly from independent power producers who own diesel generators. The government reserves the right to delay PPA payments.
Installed Capacity (in MW)
Electricity Generation (in GWh)
Utility privatisation
Which segments of the power sector are open to private participation?
Wholesale power market
Does the country have a wholesale power market?
Doing business and barriers
Iraq has an electrification rate of 100% and peak power is 22,387MWp. Recent conflicts have taken a huge toll on infrastructure, so the government is focused on rebuilding. Various developers such as Mitsubishi, ABB and GE are refurbishing plants and transmission and distribution infrastructure in Iraq. The difficult security situation makes Iraq a risky environment, but offtaker and curtailment risk is relatively low because the offtaker is the government and the share of renewables is low.
Currency of PPAs
Are PPAs (eg. corporate PPAs and all other types) signed in or indexed to U.S. Dollars or Euro?
Bilateral power contracts
Can a C&I (Commercial and Industrial) customer sign a long-term contract (PPA) for clean energy?
Fossil fuel price distortions - Subsidies
Does the government influence the wholesale price of fossil fuel (used by thermal power plants) down through subsidies?
Fossil fuel price distortions - Taxes
Does the government influence the wholesale price of fossil fuel (used by thermal power plants) up through taxes or carbon prices?
Transport
EV market
The government has yet to implement any substantive policy support in this sector and the electric vehicle (EV) market remains at an early stage.
EV policy
In 2022, Iraq received its first electric vehicle and the hope is that the market will start to take an interest and move.
Transport policies
Fuel economy standards
Does the country have a fuel economy standard in place?
Buildings
Buildings market
The government has yet to implement any substantive policy support in this sector and the low-carbon heat market remains at an early stage.
Energy efficiency policy
Does the country have a national energy efficiency plan?
Energy efficiency policy
Are there minimum energy performance standards for buildings?
Energy efficiency incentives
Is there access to loans or grants for energy efficiency measures (i.e. Wall or loft insulation or double glazing)?
Buildings policy
Energy efficiency in Iraq remains voluntary to implement and a luxury rather than obligatory compared to some other countries in the Middle East and North Africa (MENA) region.
Buildings policies
Additional insights
from BNEF
Explore more detailed information on global commodity markets and the disruptive technologies driving the transition to a low-carbon economy.
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