Iraq Solar PV Market Report
This report analyzes Iraq’s Solar Photovoltaic Market in depth, segmented by deployment type (Utility, Residential, Commercial & Industrial, and Agricultural). It highlights key growth drivers, policy developments, and challenges. Focusing on the high-demand residential and agricultural sectors, the report also explores the country’s immense solar potential and strategic initiatives.
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About This Report
The Iraq Solar Photovoltaic Market Study (2024) examines the rapid growth of solar energy in Iraq, fueled by the increasing energy demand in the residential and agricultural sectors. It delves into the role of government initiatives, private investments, and international collaborations in advancing Iraq’s solar PV market. This comprehensive report provides insights into market trends, sectoral breakdowns, and key opportunities in one of the MENA region's most promising solar markets.
Iraq Solar Photovoltaic (PV) Market Size
Solar PV Market Size Forecasting (gW)
Iraq’s solar PV market is on the cusp of transformation, with installed capacity projected to grow from XX MW in 2023 to over XX,XXX MW by 2030, reflecting a CAGR of XX% during the forecast period (2024–2030). The residential and agricultural sectors dominate demand, driven by critical energy needs, rising fuel costs, and a push for energy independence in rural and farming communities.
Key growth factors include declining solar PV costs, Iraq’s renewable energy targets (12GW by 2030), and international support for off-grid solutions in underserved regions. Solar PV adoption is accelerating due to energy reliability concerns, particularly in sectors heavily reliant on diesel generators.
Iraq Solar Photovoltaic (PV) Market Trends
1. Residential Sector: A Key Growth Driver
- Iraq’s residential sector accounts for the largest share of solar PV demand, particularly in off-grid and hybrid systems. Frequent grid outages have made rooftop solar systems a necessity for reliable power supply.
- International aid programs, such as the Iraq Solar Access Initiative, are supporting residential solar adoption by subsidizing PV systems in rural and urban areas.
- Off-grid solar PV kits are increasingly popular for households, offering an affordable alternative to diesel generators with significant savings on fuel costs.
2. Agricultural Sector: Solar to Power the Future of Farming
- The agricultural sector is emerging as a major consumer of solar PV, driven by energy needs for irrigation, water pumping, and cold storage.
- Solar-powered water pumps are transforming rural farming, particularly in remote areas where grid electricity is unavailable or unreliable.
- Initiatives like the Iraq Green Farms Program provide farmers with financing and subsidies to install solar PV systems, reducing dependence on fossil fuels and boosting productivity.
3. Utility-Scale Solar Projects
- Kar Solar Plant (750 MW) and the Dhi Qar Solar Project (1 GW) are among Iraq’s largest planned projects, designed to alleviate grid strain and meet the country’s growing electricity demand.
- These projects highlight Iraq’s commitment to its 2030 renewable energy targets and its strategy to attract private-sector investment through Public-Private Partnerships (PPPs).
4. Commercial & Industrial (C&I) Sector
- Solar PV adoption in the C&I sector is gaining traction, with rooftop and hybrid systems offering cost-effective solutions for energy-intensive businesses.
- Iraq’s Industrial Decarbonization Program incentivizes solar PV investments, providing tax benefits and low-interest loans for businesses transitioning to renewables.
Table Of Contents
- Objectives
- Information Resources
- Methodology
- Introduction
- Solar PV Initiatives and Programs
- Government Regulations and Policies
- Solar PV Capacity by Sector
- Installed Capacity
- Major Upcoming Projects
- Solar Sector Challenges
- Solar PV Market Forecasting
Scope Of The Report
The Iraq Solar PV Market is segmented into:
- Residential Solar PV: Focused on rooftop and off-grid systems for homes, particularly in urban and rural areas.
- Agricultural Solar PV: Solar solutions for irrigation, water pumping, and refrigeration in farms.
- Utility-Scale Solar PV: Large-scale installations exceeding 100 MW, including independent power projects.
- Commercial & Industrial Solar PV: Distributed generation systems for factories, warehouses, and other facilities.
Forecasts are based on installed capacity (MW) and include analyses of sectoral demands, policy frameworks, and future trends.
Frequently Asked Questions
As of 2023, Iraq’s solar PV capacity is estimated at XX MW, with residential and agricultural sectors accounting for the majority of installations. Significant growth is anticipated due to rising demand and policy support.
Key policies include:
- Renewable Energy Targets (2030): Iraq aims to achieve 12 GW of renewable energy capacity by 2030.
- Public-Private Partnerships (PPPs): Facilitate private investment in large-scale solar projects.
- Agricultural Solar Subsidies: Financial incentives for farmers to install solar-powered irrigation and water-pumping systems.
Energy storage is critical in Iraq’s residential and agricultural sectors. Hybrid solar PV systems with lithium-ion batteries are increasingly adopted to ensure power reliability and optimize energy use.
- Grid Capacity Issues: Iraq’s outdated grid infrastructure struggles to support large-scale renewable energy integration, creating bottlenecks for utility-scale solar projects.
- Bankability: The lack of financial frameworks and tailored instruments slows the development of utility-scale projects, as securing loans or guarantees remains challenging.
- Regulatory Gaps: The absence of clear renewable energy regulations, including tariffs and PPAs, adds uncertainty for investors, although frameworks are expected soon.
- Low-Quality Products and Market Disorganization: Poor-quality solar products and a fragmented market undermine system reliability and adoption, especially in rural and agricultural areas.
- Financing Barriers: High upfront costs and limited access to affordable financing hinder adoption for residential and commercial users, particularly for those needing high-quality systems with storage.
Solar PV systems are revolutionizing agriculture by enabling reliable, cost-effective energy for irrigation, water pumping, and cold storage. This reduces reliance on diesel generators and enhances productivity in rural areas.
