Iraq Eyes Solar Power to Boost Oil Exports by 250,000 Bpd

Iraq is poised to increase its crude oil exports by approximately 250,000 barrels per day (bpd) by leveraging solar energy projects to reduce domestic oil consumption. According to a government official cited by Zawya, the nation currently uses nearly a quarter million bpd for energy needs. Shifting to renewable energy sources is expected to free up this quantity for export, thereby enhancing Iraq’s revenue streams.

Abdul Baqi Khalaf, an advisor at the Iraqi oil ministry, emphasized that while the transition to renewable energy signifies progress, it does not imply a complete departure from fossil fuels. He stated, “Switching to renewable energy will save this quantity,” highlighting the dual approach of improving sustainability while maintaining oil production.

Current Energy Landscape and Future Plans

At present, solar power accounts for less than 1% of Iraq’s electricity generation, with the majority produced from natural gas—much of which is imported from Iran. Iraq has also previously imported electricity directly from Iran, although this arrangement faced challenges following the U.S. cancellation of a sanctions waiver for Baghdad.

The Iraqi government has ambitious plans for solar energy development. Earlier this year, TotalEnergies commenced work on a 1-gigawatt (GW) solar installation, with an initial phase of 250 megawatts (MW) expected to begin generating electricity by the end of 2024. The government aims to expand its solar capacity to as much as 12 GW by the end of the decade, a significant increase from the current capacity of just 42 MW.

Boosting Oil Production Amid Energy Transition

In addition to its solar initiatives, Iraq’s oil minister, Hayan Abdul-Ghani, recently announced plans to escalate crude oil production to 5.5 million bpd by the end of this year, up from an average of 4.4 million bpd currently. Looking further ahead, the government targets an ambitious production level of 7 million bpd by 2030, as stated by a ministry official.

These developments indicate Iraq’s intent to maximize its vast oil reserves while simultaneously investing in sustainable energy solutions. The dual strategy of increasing oil exports and expanding renewable energy infrastructure reflects a broader vision for the country’s energy future, positioning Iraq to navigate both current market demands and long-term sustainability goals.