Wednesday, April 8, 2026
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Baghdad

Solar Investment Saves the Grid

Iraq’s national renewable energy team has emphasized that a major solar investment saves the grid from overload. Expanding solar energy use in government buildings could redirect 20% of electricity to homes. This step would greatly ease the country’s chronic energy crisis.

Team leader Nasir Karim Qasim explained that installing solar systems across ministries and public offices will relieve the national network. It will shift a large share of energy to the residential sector, which faces the most pressure.

He added that solar energy is far more economical. Producing a unit of solar electricity costs only 2 to 3 cents. In contrast, government institutions currently pay 9 cents per unit from the main grid. This results in a 300% financial advantage for public and commercial buildings.

He also highlighted that Iraq’s industrial power rates are heavily subsidized. The cost remains at just 60 dinars per unit. Despite the low rate, the national grid still struggles to meet growing demand. A solar investment saves the grid by narrowing this gap.

Qasim acknowledged the high initial cost of solar systems for individuals. Most of that cost comes from batteries. However, he proposed a solution where private investors pay for these systems instead of citizens.

In support, Iraq’s central bank has launched a program offering reduced-interest loans. Citizens currently pay 15–16% interest over seven years. The Prime Minister is pushing to cut this rate further, making solar more accessible for all.

Qasim also announced two large solar stations underway. One in Basra by Total will produce 1,000 megawatts. Another in Najaf by ACWA Power offers the same capacity. Once completed, both plants will add 2,000 megawatts to the national supply.

He emphasized the importance of local energy production models. For example, the Government Palace uses an effective distribution-based solar model. This setup works well with Iraq’s grid and reduces long-term challenges.

With thoughtful planning, Iraq’s solar investment saves the grid, cuts costs, and improves energy access for all.

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