Iraq Signs MoUs with US for Energy Projects, Including Solar Push

In a significant step toward bolstering its energy independence and diversifying power sources, Iraq has signed two major memorandam of understanding (MoUs) with the United States, the Iraqi Prime Minister’s media office announced, recently.

The first MoU outlines plans for the development of power plants with a total capacity of 24,000 MW, aiming to significantly strengthen Iraq’s domestic electricity generation capabilities. This initiative is seen as a strategic move to address chronic power shortages in the country and reduce its dependence on imported energy.

Additionally, Iraq’s Ministry of Electricity has signed a separate MoU with US based UGT Renewables to develop a large-scale integrated solar energy project with a capacity of 3,000 MW. The solar initiative reflects Iraq’s efforts to embrace renewable energy sources and contribute to global decarbonization goals.

The agreements come amid growing pressure on Iraq to reduce its reliance on Iranian electricity and natural gas imports. In April, the US government under former President Donald Trump revoked a sanctions waiver that had previously allowed Iraq to pay Iran for electricity purchases. The waiver had been in place since 2018 as part of a broader understanding amidst US sanctions on Tehran.

As OPEC’s second-largest oil producer after Saudi Arabia, Iraq has faced criticism for its continued dependence on Iranian energy imports. The new partnerships with American companies mark a decisive step toward energy diversification and self-sufficiency, aligning with broader geopolitical and environmental priorities.