Iraq energy storage equipment subsidy policy

How can Iraq improve the energy sector?

By mitigating growth and stimulating increased supply, such a reform is key to promoting a more sustainable electricity sector that, in turn, can provide the energy needed for broader economic recovery. Iraq could consider new incentives to stimulate private investment in natural gas projects.

Should Iraq rely on state financing for energy projects?

There has scarcely been a more urgent time for Iraq to pursue crucial reforms in its energy sector to ensure that investment continues even when government revenues have been decimated by low oil prices. The alternative of continuing to rely on direct state financing of large projects only increases the risk that these projects are delayed.

Will IEA support Iraq's Energy reforms?

As Iraq’s newly formed government begins to tackle the long list of considerable challenges it faces, the IEA stands ready to support the country in its efforts to enact the reforms that will help its energy sector – and its economy – meet its vast potential.

Is foreign help enough to fix Iraq's energy problems?

Foreign help is not enough to fix energy issues, domestic reform is necessary. This past July, Iraq and France’s TotalEnergies finalized the Gas Growth Integrated Project, a $27 billion energy deal aimed at Iraq’s natural resources and improving the country’s electricity supply.

What policy levers can Iraq pull to shore up its current position?

There are a limited number of policy levers that Iraq can pull to shore up its current position. Electricity subsidies cost the state around USD 12 billion per year. Equivalent to around five months of total net revenues at current prices, this burden is particularly acute when the country’s fiscal health is as vulnerable as it is now.

Can Iraq achieve energy self-sufficiency without regional aid?

However, the path to energy sufficiency remains a considerable challenge for Iraq even with regional aid. Without domestic reforms to address the underlying causes of the energy crisis, Iraq’s journey towards achieving energy self-sufficiency is still a considerable distance away.