In 2023, Iraq's electricity consumption was heavily dependent on fossil fuels, with more than half of its power coming from gas. Almost all the electricity generated in the country, about 97%, was from fossil energy sources. Low-carbon electricity contributed a mere 1%, highlighting that clean energy solutions are largely untapped. The reliance on net imports was around 2%, which suggests that Iraq is still dependent on external sources to fulfill its electricity needs. The current energy mix suggests a pressing need for Iraq to pivot towards more sustainable forms of electricity generation to reduce its carbon footprint and improve energy security.

Is Electricity Growing in Iraq?

Iraq's electricity consumption has indeed been growing, as evidenced by the increase in per capita usage from 3118 kWh in 2022 to 3404 kWh in 2023. This increase of 286 kWh per person reflects the country’s growing demand for electricity, possibly driven by electrification and economic activities. However, this growth hasn't been mirrored in the low-carbon segment, where electricity generation per capita decreased to 39 kWh in 2023 from the previous record of 213 kWh per person in 2006. This decline of 174 kWh per person in low-carbon electricity is concerning and indicates a retreat from sustainable energy paths.

Suggestions

To increase low-carbon electricity generation, Iraq should draw inspiration from successful regions that have made substantial progress in deploying clean energy technologies. Solar energy, which is ideal for Iraq given its sunny climate, should be considered, learning from the progress made in regions like California and Lebanon with significant solar capacity. Nuclear energy also offers a reliable low-carbon electricity source, as demonstrated by countries like France and Slovakia, where nuclear accounts for more than half of the electricity generation. Emulating these regions could help Iraq diversify its energy mix and build a more sustainable electricity framework.

History

Looking at the history of low-carbon electricity in Iraq, there is a pattern of fluctuation rather than consistent growth. Notably, during the early 1990s, hydroelectric power saw a decline, followed by sporadic gains and losses in subsequent decades. In the early 2000s, hydro power had a brief resurgence in 2005 but then struggled to maintain its momentum. More recently, hydroelectric generation has consistently faced setbacks, with declines noted almost every year from 2011 onward. The initial introduction of solar energy in 2020 was a positive step, but it hasn't been followed by significant expansion. This patchy history underscores the need for a more robust and sustained strategy to develop low-carbon energy sources, especially given the environmental and economic challenges posed by overreliance on fossil fuels.

Electricity Imports and Exports

Balance of Trade