Economic Observatory: Iraq spends more than 5 trillion dinars to cover half of its electricity demand
Economic Observatory: Iraq spends more than 5 trillion dinars to cover half of its electricity demand
2025-12-13 00:52
Shafaq News – Baghdad
The Economic Observatory “Eco Iraq” stated on Saturday that the cost of electricity production in Iraq reached 5.6 trillion dinars, while the contribution of renewable energy does not exceed about 2% of the current total production.
According to a statement issued by the observatory, “Iraq is among the countries with cheap electricity prices, as the tariff ranges between 1.5 cents and 4.6 cents per dollar/kWh, which puts it in seventh place globally and second in the Arab world in terms of low prices.”
The statement explained that “the cost of electricity production up to September 2025 amounted to 5 trillion and 6 billion dinars,” noting that “the current peak production reached 28 thousand megawatts, while fully meeting the demand requires about 50 thousand megawatts.”
The observatory noted that “electricity production sources that rely on fossil fuels constitute 98% of total production, and are distributed as follows: 36% investment stations, 35% gas stations, 19% steam stations, 6% electricity supplied by the Kurdistan Region, and imported from: Iran, Jordan, and Turkey, and 2% diesel stations.
The statement added that “the contribution of renewable energy, including hydroelectric and solar energy, does not exceed 2% of total production.”
The observatory stressed that “achieving complete self-sufficiency in electricity requires an integrated package of measures and decisions, including reducing irrational consumption, addressing violations on the network, and upgrading electricity transmission and distribution equipment for consumers.”
He also noted “the weakness and negligence of those responsible for the electricity sector, which leads to the continuation of power outages in the country.”
The Iraqi Minister of Electricity, Ziad Ali Fadel, announced at the beginning of last August that an unprecedented record had been achieved in energy production, reaching 28,000 megawatts, for the first time in the country’s history.
Iraq has suffered from a chronic electricity shortage for decades, a consequence of sanctions and successive wars. For years, residents have protested the frequent power outages, particularly during the summer months when temperatures can reach 50 degrees Celsius.
For many years, Iraq has relied on importing electricity and gas from Iran, especially during the peak of the summer season, and in doing so, it depends on continuous US exemptions, which are issued more than once each year.
shafaq.com
