Oil & Gas

Iraq is poised to boost its crude oil exports by as much as 250,000 barrels per day (bpd), thanks to a strategic pivot toward solar power. According to a report by Zawya, citing an Iraqi government official, the country currently consumes nearly a quarter of a million bpd of crude oil for electricity generation. By replacing a portion of this consumption with solar energy, Iraq could redirect that oil to the export market, generating additional revenue without increasing overall production.

Abdul Baqi Khalaf, an advisor at the Iraqi oil ministry, emphasized that this shift toward renewables does not signal a departure from fossil fuels. “Switching to renewable energy will save this quantity [250,000 bpd]… This will allow Iraq to export more crude and boost revenues,” he said. The country sees renewable energy as a complementary resource, rather than a replacement, as it continues to capitalize on its vast oil reserves.

Despite the promise, solar currently provides less than 1% of Iraq’s electricity. Most of the country's power comes from natural gas—much of it imported from Iran—or directly imported electricity. However, that dynamic is changing. Earlier this year, French energy giant TotalEnergies began construction on a 1-gigawatt solar power project in Iraq. The first 250-megawatt phase is expected to be operational by the end of the year. The government has even more ambitious plans: to build up to 12 GW of solar capacity by 2030, a massive leap from the mere 42 MW installed by the end of 2024.

At the same time, Iraq is pursuing aggressive goals for oil production. Oil Minister Hayan Abdul-Ghani recently announced that the government aims to increase output to 5.5 million bpd by the end of 2025, up from the current 4.4 million bpd. Looking further ahead, the oil ministry envisions production reaching 7 million bpd by 2030. These developments suggest a dual-track strategy: leveraging renewable energy to maximize export potential while accelerating oil production to monetize reserves in the near term.