In 2023, Iraq’s electricity consumption depended overwhelmingly on fossil fuels, which supplied about 97% of the total. Gas alone accounted for roughly 57%, or more than half of all electricity consumed. Low-carbon electricity contributed only about 1%, while net imports supplied the remaining 2%. This leaves Iraq with substantial scope to expand clean electricity and reduce reliance on fossil fuels, along with their climate and air-pollution impacts.

Is Electricity Growing in Iraq?

Electricity consumption in Iraq is growing: it reached a record of about 3,400 kWh per person in 2023, exceeding the previous record of roughly 3,100 kWh in 2022 by 286 kWh, or about 9%. That growth is welcome, but clean electricity has not kept pace. Low-carbon generation stood at just 39 kWh per person, compared with its historic peak of 213 kWh in 2006—a decline of 174 kWh, or more than 80%. This disappointing gap highlights the need to make low-carbon generation a much larger part of Iraq’s electricity growth.

Suggestions

Iraq should prioritize solar expansion while developing a pathway to nuclear electricity. Nearby places offer useful examples: solar supplies about 31% of electricity generation in Lebanon and 15% in Jordan, while the sunny US state of Nevada gets roughly a third from solar. Iraq could apply these lessons through large solar projects, rooftop installations, and investment in grids and storage. For nuclear development, the United Arab Emirates is a particularly relevant regional example, generating 20% of its electricity from nuclear, while France demonstrates that nuclear can supply about two-thirds. Learning from their planning, workforce development, and project delivery could help Iraq build a larger, dependable low-carbon electricity supply.

History

Iraq’s recorded low-carbon electricity history has been dominated by fluctuating hydropower output. A gain of 2 TWh in 1990 was largely reversed by a 1.7 TWh decline in 1991. A substantial 5.5 TWh increase in 2005 was followed by losses in 2007 and 2008 totaling 2.7 TWh. During 2010–2018, repeated gains and declines produced an overall decrease of about 1.5 TWh. Hydropower rebounded by 3.1 TWh in 2019, but four consecutive annual declines from 2020 through 2023 then removed 3.6 TWh. Solar added 0.3 TWh in 2020, a welcome contribution, but the recent overall decline underscores the urgency of sustained investment in a broader clean electricity supply.

Electricity Imports and Exports

Balance of Trade