Iraq energy storage policy subsidy

Should Iraq rely on state financing for energy projects?

There has scarcely been a more urgent time for Iraq to pursue crucial reforms in its energy sector to ensure that investment continues even when government revenues have been decimated by low oil prices. The alternative of continuing to rely on direct state financing of large projects only increases the risk that these projects are delayed.

How can Iraq improve the energy sector?

By mitigating growth and stimulating increased supply, such a reform is key to promoting a more sustainable electricity sector that, in turn, can provide the energy needed for broader economic recovery. Iraq could consider new incentives to stimulate private investment in natural gas projects.

How has the turmoil impacted Iraq's power infrastructure?

But the turmoil has also undermined the country’s ability to maintain and invest in its power infrastructure. This report maps out immediate practical actions and medium-term measures to tackle the most pressing problems in Iraq’s electricity sector.

Is foreign help enough to fix Iraq's energy problems?

Foreign help is not enough to fix energy issues, domestic reform is necessary. This past July, Iraq and France’s TotalEnergies finalized the Gas Growth Integrated Project, a $27 billion energy deal aimed at Iraq’s natural resources and improving the country’s electricity supply.

Why does Iraq have a power shortage?

Demand for electricity in Iraq is growing far more rapidly than supply, contributing to power shortages and forcing the country to import electricity despite its rich energy resources.

Will IEA support Iraq's Energy reforms?

As Iraq’s newly formed government begins to tackle the long list of considerable challenges it faces, the IEA stands ready to support the country in its efforts to enact the reforms that will help its energy sector – and its economy – meet its vast potential.