Iraqi Lawmaker Proposes Establishment of Clean Energy Financing Bank
On March 7, 2025, Representative Mudar Al-Karaki advocated for the establishment of a dedicated bank to finance transition loans aimed at promoting clean energy initiatives in Iraq.
Al-Karaki emphasized that transitioning to clean energy is a strategic imperative for Iraq, aligning with global priorities as countries increasingly turn to renewable sources like solar and wind energy. He highlighted the pressing need for such initiatives in Iraq, especially in light of ongoing energy crises, challenges related to gas imports for power generation, and rising pollution levels.
The representative noted that clean energy, particularly solar power, has proven economically viable and offers environmental benefits. He called for the new bank to provide various financing options for companies and institutions across different socioeconomic segments, facilitating access to solar panel systems.
Al-Karaki underscored the importance of addressing current exorbitant pricing barriers, which limit access for much of the Iraqi population living below the poverty line. He highlighted the necessity for the clean energy bank to offer flexible loan solutions, potentially at no interest, to accelerate the adoption of renewable energy sources.
He projected that increased reliance on clean energy could alleviate pressure on the national power grid by as much as 10% to 20% over one to two years, with the potential for even greater reductions if the government implements effective financial strategies within a five-year timeframe.
In a related development, the Ministry of Electricity announced the launch of the "Shams of Basra" project, marking it as Iraq’s largest solar energy initiative. In collaboration with Total Energy, this project represents a significant step towards diversifying the country’s energy sources.
The ministry confirmed that construction has commenced on a solar power station located in the Basra Governorate, covering 9,000 dunums and comprising approximately two million solar panels across four generating units. The station is expected to produce 1,000 megawatts of clean electricity, with each unit contributing 250 megawatts.
This initiative is positioned as a strategic move to enhance energy security and reduce reliance on imported fuels, reinforcing the government’s commitment to sustainable energy solutions.