Iraq pours $4B+ into electricity as renewables lag

Shafaq News – Baghdad

Iraq spent about $4.3 billion producing electricity through September 2025, while renewable sources accounted for only around 2% of current output, the Eco Iraq Observatory said on Saturday.

In a statement, Eco Iraq said the country sells electricity at among the world’s lowest rates, with tariffs ranging between 1.5 cents and 4.6 cents per kilowatt hour, placing Iraq seventh globally and second in the Arab world for low prices.

The Observatory explained that fossil fuel-based sources make up 98% of electricity production, while renewables, including hydropower and solar energy, do not exceed 2% of total output.

Peak generation currently stands at roughly 28,000 megawatts, it added, noting that fully meeting demand would require about 50,000 megawatts.

Achieving such sufficiency would require a package of measures, including curbing wasteful consumption, addressing violations on the national grid, and upgrading equipment used by consumers, Eco Iraq suggested.

In October, the government launched a roughly $6 billion renewable energy drive aimed at producing up to 12 gigawatts of green power by 2030, partnering with international firms such as TotalEnergies, Masdar and PowerChina, with the goal of adding as much as 10,000 megawatts of capacity.

Read more: Billions lost, power gone: Iraq's energy crisis explodes