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Central Bank Initiative Under Scrutiny in Iraq’s Energy Sector
Representative Muhammad Abd Rabuh announced on Wednesday a notable initiative titled “Central Bank Initiative,” which aims to offer loans to citizens through financial institutions for the acquisition of solar energy systems. In his remarks, he criticized certain elements within the Ministry of Electricity, alleging there are individuals actively working to obstruct the solar energy initiative for either personal gain or undisclosed motives. He stated, “Unfortunately, there are individuals who lack specialization and genuine commitment to the future of the country standing against this project, which is set to enhance the energy sector in Iraq.”
Recently, the Electricity and Energy Committee within the Iraqi parliament expressed concerns regarding the effectiveness of the Central Bank’s initiative, which was launched to bolster renewable energy projects with an allocation of one trillion dinars. Committee member Kamel Al-Akili indicated that the initiative, operational for the past three years, has not met expected outcomes, with only 250 million dinars allocated to ten borrowers. He attributed the shortcomings to convoluted procedures and insufficient collaboration between the Central Bank, banks, and financial institutions. Al-Akili called for improved coordination between the Ministry of Electricity, the Central Bank, and banking entities.
The “Green” Observatory of Iraq has placed the onus on the Central Bank for undermining the solar panel initiative, citing stringent conditions that have hindered progress. The Observatory has urged for revisions to the initiative’s requirements to enhance its chances of success.
