Former Iraqi minister calls for customs exemption on solar panels to boost clean energy adoption

Shafaq News / Former Iraqi Transport Minister and current Member of Parliament, Amer Abdul Jabbar Ismail, proposed on Friday that Prime Minister Mohammed Shia Al-Sudani grant a customs exemption on solar panels to promote the use of clean energy in Iraq.

Ismail highlighted on X that the high costs of solar panels and related equipment, make them unaffordable for the poorer and middle-class segments of the population.

Since 2021, there has been a noticeable increase in the adoption of solar energy systems following a decision by the Kurdistan Regional Parliament to reduce national electricity bills for solar energy users.

To encourage the installation of solar energy systems, the Central Bank of Iraq (CBI) announced in 2022 the allocation of one trillion dinars (approximately $750 million) to provide subsidized loans to the private sector, including homes and private companies.

Despite being rich in oil, Iraq, home to 43 million people, suffers from daily power outages that can last up to ten hours, exacerbated by summer temperatures that can reach 50 degrees Celsius. The country requires over 32,000 megawatts to meet its needs, but its power plants currently produce about 24,000 megawatts.

Renewable energy remains underutilized in Iraq, which enjoys more than 3,000 sunny hours out of 8,700 hours annually. According to a World Bank report, more than 98% of Iraq's electricity is generated from fossil fuels.

Recent economic reports indicate that Iraq is making significant progress in constructing the largest solar power plant in Iraq and the Middle East.