Iraq could ramp up its crude oil exports by some 250,000 barrels daily as it saves this amount from local consumption with the help of several solar power projects.
Zawya reported the news, citing a government official, who said that “Iraq consumes nearly a quarter million bpd of crude oil for energy use…switching to renewable energy will save this quantity.”
“This will allow Iraq to export more crude and boost revenues…switching to renewable energy is a significant step, but it does not mean Iraq will shift away from fossil fuels,” Abdul Baqi Khalaf, an advisor at the Iraqi oil ministry, also said.
Solar power currently supplies less than 1% of Iraq’s electricity. Most of it is generated using natural gas, of which a lot is imported from Iran. Iraq also imports electricity from its neighbor directly, or it did, until recently, when the U.S. canceled a sanctions waiver for Baghdad.
Plans for solar are ambitious, and the first steps are already being taken. French TotalEnergies earlier this year broke ground on a 1-GW solar power installation. The first part of the installation, with a capacity of 250 MW, should be ready to start generating by the end of the year.
The Iraqi government plans to build as much as 12 GW of solar power capacity by the end of this decade—up from just 42 MW at the end of 2024.
Meanwhile, earlier this week, oil minister Hayan Abdul-Ghani announced the government had plans to ramp up crude oil production to 5.5 million barrels daily by the end of the year. Iraq’s current production rate averages 4.4 million barrels daily. By 2030, the government in Baghdad eyes production of 7 million barrels daily, according to an earlier statement by an oil ministry official. The plan suggests Iraq wants to make the most of its massive oil reserves and do that sooner rather than later.
By Irina Slav for Oilprice.com