The Future of Energy in Iraq: Policy Options to 2030
Three pathways to close the electricity gap and reform subsidies without harming the most vulnerable
Researchers
Abstract
This paper analyses Iraq's electricity generation gap and the cost of current subsidies to the operating budget, and compares three policy pathways to 2030: expanding the use of associated gas, investing in utility-scale solar, and gradually reforming tariffs while protecting low-consumption households.
It draws on published Ministry of Electricity data, interviews with officials and investors, and a simplified financial model of each pathway. It finds that combining the first and third pathways could halve the gap within four years at a lower cost than the status quo.
The paper closes with actionable recommendations for the Ministry of Electricity, the Ministry of Finance and private-sector partners, with a timeline and monitoring indicators.
Highlights of the paper
- Three pathways to narrow the electricity gap by 2030
- Current subsidies cost the equivalent of 11% of the operating budget
- Actionable recommendations for the Ministry of Electricity and private partners
Keywords
How to cite (APA)
Hassan, S., & Al-Obaidi, H. (2026). The Future of Energy in Iraq: Policy Options to 2030 [Policy paper]. Alrai Alrashid Center for Studies.
