The Central Bank of Iraq amends the regulations of the renewable energy initiative.
The Central Bank of Iraq amends the regulations of the renewable energy initiative.
2025-04-10
The Central Bank of Iraq issued an amendment to the regulations of the Renewable Energy Initiative today, Thursday, in a move aimed at promoting sustainable development and supporting the use of renewable energy. The Central Bank stated in a statement, “Based on the Central Bank of Iraq’s goal of promoting sustainable development and its supportive role in the move towards the use of renewable energy, and through its initiative launched in early 2022, some provisions of the initiative have been amended based on our circular No. (503/4/9) dated 10/28/2024.”
The amendments included the following points:
1. Determining the single advance granted to the bank at an amount of (300) million dinars, and the subsequent advance will not be granted except after providing the Central Bank with the required statement within the specified period.
2. Amend paragraph (4) so that the financing period becomes (7) years, including a maximum grace period of (6) months.
3. Amend paragraph (3) to become the Central Bank interest rate of (0.5%) and the banks’ interest rate of no more than (2.5%).
4. Amend Paragraph (6) to enhance the balances of banks open to the Central Bank, in accordance with the financing requests received from them. Loans are granted for the purpose of purchasing renewable energy systems for residential units and various projects, provided that the Central Bank is provided with detailed statements and tables of the loan beneficiaries within a maximum period of (6) months from the date of granting the loans.
5. The mechanism for applying for financing for citizens will be through two methods:
A. Electronic application: via the Tamwil website (https://tamwil.iq) or other electronic platforms, provided that the citizen follows up on the procedures with the bank.
– B. Lending to companies accredited by the Ministry of Electricity, whereby the companies provide citizens with renewable energy systems and maintain them.
6. The calculation of the promotion period begins from the date of enhancing the banks’ liquidity, whether Mechanism (A) or (B) is adopted.
These amendments aim to improve the initiative’s progress and increase its effectiveness in supporting renewable energy projects in Iraq.
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