Solar power is cheaper, cleaner, and reliable. For this reason, it is always exciting to see another country sign contracts for solar development. Iraq is the latest country to commit to a solar project that will generate 525 MW of electricity!
The project is also a unification of some sort as it will be handled by a consortium made up of Norwegian Scatec, Egyptian Orascom Construction, and local firm Bilal. It will work under a build, own, and operate model by an entity specially set up (SPV).
The provinces of Babel and Karbala will host the project in southern Iraq, and the total value is about half a billion dollars.
The consortium won the contract for 522 MW out of the 755 MW available on tender under an independent power producer (IPP) scheme.
Under the agreement, the electricity ministry will connect the installation to the grid under a transmission connection contract (TCC) and lease the land for the solar farms under a land-lease contract (LCC). This makes the ministry customer to the SPV.
The solar farms are scattered over seven locations. The Karbala produces the most electricity at 300 MW, and Sawa 1 in Muthana province generates the least at 30 MW.
Iraq is negotiating other contracts for more renewable energy that will bring more international firms into the country. These include Masdar, an Abu Dhabi sovereign wealth company that will develop capacity for 1 GW solar energy production in five locations in the country.
Similarly, French TotalEnergies will develop another 1 GW of solar production. Also, Chinese Power China will generate 2 GW of solar energy in phases.
Iraq is working towards 10 GW of solar energy by 2030 to meet high energy demands in the country. It currently has 216 MW of renewable energy capacity.
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