Iraq nepal bato energy storage subsidy policy

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.

What is the future of electricity supply in Iraq?

There are a number of pathways available for the future of electricity supply in Iraq but the most affordable, reliable and sustainable path requires cutting network losses by half at least, strengthening regional interconnections, putting captured gas to use in efficient power plants, and increasing the share of renewables in the mix.

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.

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.

Why is government financing a major infrastructure project in Iraq a problem?

The current model, which favours government financing of large infrastructure projects across the sector, is prohibitively burdensome at times of depressed oil revenues and risks indefinite delays to projects that are crucial to Iraq’s economic development.

Why is Iraq's energy system vulnerable?

However the capacity to capture and process this gas has not kept pace. The inability to utilise its gas riches means that the country's gas deficit has grown, and Iraq now relies on imports from Iran to meet increasing demand. This has introduced a number of vulnerabilities to Iraq’s energy system.