Iraq (2012)

Degree of reliance on imported energy: 

<p>
In 2007, Iraq exported 82,418 ktoe of crude oil, making it a net exporter of energy. The vast majority of imports to the country are in the form of petroleum products, with 11,534 ktoe being imported in 2007. The import balance is completed by 117 ktoe of electricity. In 2009, Iraq&rsquo;s crude oil production averaged 2.4 million barrels per day (bbl/d), about the same as 2008 levels, and below its pre-war production capacity level of 2.8 million bbl/d in 2003. The country exported 1.8 million bbl/d of crude oil in the same year; and the majority of the oil exports go to refineries in Asia, especially China, India and South Korea.</p>
<p>
Despite improvements in the refining sector in recent years, the sector has not been able to meet domestic demand of about 600,000bbl/d, and the refineries produce too much heavy fuel oil and not enough other refined products. As a result, Iraq relies on imports for 30% of its gasoline and 17% of its LGP.</p>

Main sources of Energy: 

<p>
Total installed electricity capacity (2008): 7.20 GWe<br />
Thermal: 51%<br />
Gas Turbine: 26%<br />
Hydro-electric: 21%<br />
Diesel Plant: 2%</p>
<p>
In 2009, Iraq produced 46,063 GWh of electricity and consumed 33,223 GWh. In the same year, the renewable share of electricity production was 0.8%.</p>
<p>
Total Primary Energy Supply (2009): 32,175 ktoe<br />
Oil: 96%<br />
Gas: 3.0%<br />
Hydro: 0.9%<br />
Biofuels &amp; Waste: 0.1%</p>
<p>
Iraq was the world&rsquo;s largest oil producer in 2009. Iraq&rsquo;s energy sector is heavily based upon oil, with approximately 94% of its energy needs met with petroleum.</p>

Country: 

Iraq

Extent of the network: 

<p>
Prior to 2003, approximately 82% of citizens had access to electricity, but as a result of the conflict this figure has seriously decreased.</p>

Capacity concerns: 

<p>
Iraq&rsquo;s oil sector has suffered over the past several decades from sanctions and wars, and its oil infrastructure is in need of modernisation and investment. Iraq has thus begun an ambitious development programme to increase oil production. Despite the absence of the Hydrocarbons Law, the Iraqi Ministry of Oil signed 12 long-term contracts between November 2008 and May 2010 with international oil companies to develop 14 oil fields. As a result, Iraq expects to boost production by 200,000bbl/d by the end of 2010, and to increase production capacity by an additional 400,000 bbl/d by the end of 2011. However, the country also needs to upgrade refining and export infrastructure.</p>
<p>
To alleviate product shortages, Iraq&rsquo;s 10-year strategic plan for 2008-2017 set a goal of increasing refining capacity to 1.5 million bbl/d.</p>
<p>
Iraqi natural gas production rose from 81 billion cubic feet (Bcf) in 2003 to 552 Bcf in 2008. Some was used for power generation and some was re-injected to enhance oil recovery. Over 40% of the production in 2008 was flared due to a lack of sufficient infrastructure. As a result, Iraq&rsquo;s five natural gas processing plants, which can process over 773 Bcf per year, sit mostly idle. To reduce flaring, Iraq has been working on an agreement with Royal Dutch Shell to implement a 25-year project to capture flared gas and provide it for domestic use.</p>
<p>
Large-scale increases in oil production would also require large increases in power generation. However, Iraq has struggled to keep up with the demand for power, with shortages common across Iraq. Iraq&rsquo;s electricity infrastructure was severely damaged during the Gulf War, and has suffered from further damage and lack of investment under sanctions, and following the invasion in 2003. While the supply of electricity is increasing, it is unable to keep pace with rising demand. Illegal connections, poor planning and shortages in funding are compounding the problems with generation. In 2007 Iraqi households were receiving on average just 8 hours of electricity per day through the public network. Even with the support of expensive communal and private generators, many households were receiving less than 18 hours of power per day. According to UNDP, the electricity supply has since deteriorated in some areas, particularly Baghdad, but the Iraqi Kurdistan region has seen some improvement. With the ageing status of Iraq&#39;s electricity grid (the most recent transmission line was constructed in 1988), updating generation and transmission is a high priority. While various projects will add 12,000 megawatts of generation by 2015, demand is projected to increase to 20-21,000 megawatts.</p>

Potential for Renewable Energy: 

<p>
<b>Solar energy</b><br />
Iraq has good potential for solar power, with an average irradiation of 5.6 kWh/m2/day and more than 3200 sunny hours per year. However, using solar power in Iraq has unique challenges, including dust and the high ambient temperature. Iraq&#39;s Ministry of Electricity is currently following a five-year plan to create 16 new solar power plants, with a combined capacity of 3,500 MW.</p>
<p>
<b>Hydro energy</b><br />
Iraq has traditionally used hydro-power to generate electricity taking advantage of the Tigris and Euphrates rivers. As generation of these units declined drastically in recent years due to the reduction in water resources, more efforts are needed to optimise energy generation from water flow.</p>
<p>
<b>Wind energy</b><br />
With an estimated 4.9 full-load hours per day in certain areas, Iraq has moderate wind energy potential. The semi-autonomous region of Kurdistan has also begun investment in wind technology, with 6 turbines being installed in a pilot project currently.</p>
<p>
<b>Geothermal energy</b><br />
As yet, there is no installed geothermal capacity in the country, nor are there plans to utilise the country&#39;s geothermal resource. Average temperatures of 100&ordm;C at 5,000 metres indicate a low potential for power generation by geothermal means in the country, but such a resource could still be utilised for space/water heating.</p>
<p>
<b>Biomass energy</b><br />
No dedicated plans are in place as yet to generate power from biomass in the country, nor has an extensive study of the available biomass resource been conducted.</p>
<p>
<b>Biofuels</b><br />
Plans are under-way for investment in bioethanol production from dates. Prior to 2003, Iraq was the world&#39;s fifth-largest date producer, and revitalising the neglected plantations is a possible strategy. Plans are also under-way to adapt salt-water mangroves to the same purpose, due to their suitability to Iraqi environmental conditions.</p>

Potential for Energy Efficiency: 

<p>
In January 2010, Iraq and the EU signed a joint memorandum on the creation of a strategic energy partnership, part of which was the commitment by the EU to aid Iraq in constructing a comprehensive energy policy and promotion of renewable energy and energy efficiency.<br />
Total final energy consumption in 2009 was 24,486 ktoe. By sector, transport sector consumed the amount at 10,397 ktoe, followed by industry at 6,207 ktoe and residential sector at 3,378 ktoe. By source, oil products contributed most at 20,676 ktoe, followed by electricity at 2,857 ktoe, natural gas at 938 ktoe and biofuels and waste at 15 ktoe.</p>

Ownership: 

<p>
The electricity market is solely owned and operated by the <i><b>Ministry of Electricity</b></i> (<a href="http://www.moelc.gov.iq/default_en.aspx">http://www.moelc.gov.iq/default...) which was established in 2003 by replacing the Commission Electricity. The Ministry of Electricity is responsible for generating, transmitting and distributing of the electrical energy in Iraq.</p>
<p>
The <i><b>Ministry of Oil</b></i> (<a href="http://www.oil.gov.iq">www.oil.gov.iq</a>) currently has central control over oil and gas production and development in all territories but the Kurdish territory, and operates through three entities; the <i><b>North Oil Company</b></i> (NOC), the <i><b>South Oil Company </b></i>(SOC), and the <i><b>Missan Oil Company</b></i> (MOC), which was split off from the SOC in 2008, as well as the North and South Gas Companies.</p>

Structure / extent of competition: 

<p>
Prior to 2003, Iraq prohibited foreign ownership of Iraqi businesses and ran most large industries as state-owned enterprises. From 2003 the Coalition Provisional Authority began issuing binding orders privatising the economy and opening it to foreign investment.</p>
<p>
Currently, the Ministries of Oil and Electricity have 100% control over their respective markets, with full vertical integration. 18 district utilities provide power under the Ministry of Electricity umbrella.</p>

Existence of an energy framework and programmes to promote sustainable energy: 

<p>
The Oil Law of May 2007 opened opportunities for foreign companies to run some of Iraq&#39;s larger oil fields, whilst reducing the role of the state-controlled utility. Sustainable energy is still in it&#39;s infancy in the country, and as such programs to promote it are few. The Kurdistan regional government has recently commenced a plan to survey hydro- and wind-power resources in the region.</p>
<p>
The proposed Hydrocarbons Law, which governs oil contracting and regulation, has been under review in the Council of Ministers since October 2008. However, the Kurdistan Regional Government (KRG), the official ruling body of a federated region in northern Iraq that is predominantly Kurdish, passed its own hydrocarbons law in 2007.</p>
<p>
The Ministry of Electricity is developing seven renewable energy projects with potential combined capacity of 830 MW. The largest potential renewable energy project calls for a geothermal unit in Najaf with proposed capacity of 450 MW. A geothermal plant with capacity of 300 MW is also planned for Al-Kifil. The four proposed solar plants at Rutba, Nukhaib, Al-Ahwar and Al-Salman will have capacity of 10-30 MW.</p>

Current energy debates or legislation: 

<p>
Due to the current status of Iraq&#39;s energy market, and the lack of a dedicated energy law, legislation for the formation of an energy law is still being debated in the Iraqi government.<br />
&nbsp;</p>

Major energy studies: 

<p>
<i>Hydrocarbon exploration and field development in Iraq Volume VIII</i> (2009), Drs Thamir Uqaili and Manouchehr Takin: <a href="http://secure.cges.co.uk/products/hydrocarbon-exploration-and-field-deve... />
&nbsp;</p>

Role of government: 

<p>
The majority of the market policy is controlled by the respective state utilities, and the government plays a role in deciding energy policy. The Kurdistan regional government has taken an active role in promoting sustainable energy in the autonomous region, whilst the central Iraqi government has made numerous treaties with the EU and other powers to help develop and secure the country&#39;s energy future.</p>
<p>
The Ministry of Electricity&rsquo;s aims include :</p>
<ul>
<li>
Operate the electrical power systems from production and transmission to distribution and delivering of electricity to consumers.</li>
<li>
Develop the electrical power systems to cover the increasing demands on electrical energy.</li>
<li>
Offer the best services for consumers (domestic, commercial, industrial, agricultural and governmental).</li>
<li>
Link the electrical networks of neighbouring countries and the Arabian East and contribute in the Arab market of electrical power.</li>
</ul>
<p>
The <b><i>Ministry of Science and Technology</i></b> (MoST), established in 2003 from merging Iraqi Atomic Energy Commission and research oriented state owned enterprises from Military Industrialization Commission, has a mission to utilise science and technology in the social and economic development of Iraq. It is the home of about 40 scientific research centers organized in seven research oriented directorates in the fields of, Agriculture, Material Science and Technology, Environment and Water, Nuclear Science, Renewable Energy, Information Technology, Industrial research and Space &amp; Communication Technology. MoST is thus responsible for renewable energy and has set main priority areas for the future of renewable energy such as:</p>
<ul>
<li>
Establishing a National Renewable Energy Policy that will coordinate action of different government ministries;</li>
<li>
Creating a knowledge base for renewable energy in Iraq that would facilitate incorporation of renewable energy in future projects. In this respect work is underway to create Wind Atlas for Iraq.</li>
<li>
Promoting efficient use of energy through building codes and equipment standards in coordination of other agencies;</li>
<li>
Research and development in the field of solar energy, especially thermal solar energy which is suitable for Iraq;</li>
<li>
Research and technology development for solving dust and heat effects on solar panels; and</li>
<li>
Renewable Energy Systems for domestic use.</li>
</ul>
<p>
During 2012, a national Renewable Energy Strategy is being developed; a first version of Iraqi Wind Atlas is published; and joint projects with Ministry of Industry in the field of production of RE equipment for domestic and remote area use are being launched. Plans for the next five years: availability in the local market of RE units for domestic and remote area use with attractive financing schemes; generation of electricity by on-grid RE units; minimum requirements on energy efficiency for equipment sold in Iraq; energy efficiency code and green technology on new government buildings in Iraq.<br />
&nbsp;</p>

Government agencies in sustainable energy: 

<p>
There are no operating agencies in the Iraqi government dedicated to sustainable energy.</p>

Energy planning procedures: 

<p>
The current five-year plan from 2010-2014 is set to see the creation of roughly 2,700 projects to improve Iraq&#39;s energy situation, at an approximate cost of $186 billion, mainly focusing on the oil and electricity sectors. The government hopes to generate some 3.5 million jobs with the plan.</p>
<p>
Continued developments in the Kurdistan region include a survey of the region&#39;s renewable energy resources, as well as a dedicated hydrocarbon law for the region, passed in 2007.</p>

Energy regulator Date of creation: 

<p>
The Ministry of Electricity (<a href="http://www.moelc.gov.iq/pages_en.aspx?id=2">http://www.moelc.gov.iq/page...) directly regulates the energy sector in Iraq.</p>

Degree of independence: 

<p>
N/A</p>

Regulatory framework for sustainable energy: 

<p>
As yet the Ministry of Electricity has not produced a dedicated framework for sustainable energy, instead deciding to concentrate on repairing and restructuring the country&rsquo;s damaged and ageing grid.</p>

Regulatory roles: 

<p>
N/A</p>

Role of government department in energy regulation: 

<p>
N/A</p>

Regulatory barriers: 

<p>
Iraq has good potential for the implementation of renewable energy sources, but the current situation in the country means that large-scale promotion of such technologies is difficult, due to the lack of knowledge and experience, as well as the vital role that hydrocarbon fuels play in the country&#39;s economy.</p>

References: 

EIA (2010) &lsquo;Country Analysis Brief: Iraq&rsquo;, Last updated April 2013, available at: <a href="http://www.eia.gov/countries/cab.cfm?fips=IZ">http://www.eia.gov/countri... 28 July 2013]<br />
<br />
Iraq Energy Expo (2011) &lsquo;INTERVIEW WITH MR. SAMIR AL-ATTAR SENIOR AGENT OF THE MINISTRY OF SCIENCE AND TECHNOLOGY&rsquo;, December 2 2011, available from: <a href="http://www.iraqenergyexpo.com/2012/StoryDetails.php?id=6104&amp;language... [Accessed 28 July 2013]<br />
<br />
IEA (2012) Country Information. Available at:&nbsp;<a href="http://www.iea.org/stats/countryresults.asp?COUNTRY_CODE=IQ&amp;Submit=S... 28 July 2013]<br />
<br />
AMEinfo.com (2011) &lsquo;Iraq aims for 830 MW of renewable energy production&rsquo;, 13 June 2011, available from: <a href="http://www.ameinfo.com/267933.html">http://www.ameinfo.com/267933.html</... 28 July 2013]<br />
<br />
IAU (2010) &lsquo;Electricity in Iraq Factsheet&rsquo;, August 2010, Inter-Agency Information and Analysis Unit (IAU), available from: <a href="http://www.iaccidatabase.com/PDF_files/Electricity%20in%20Ira6025/Electr... [Accessed 28 July 2013]<br />
<br />
Doyle, P. and Jaafar, K. (2010). &quot;Iraq has an opportunity to become a solar leader&quot;. Available at:&nbsp;<a href="http://www.iraqi-datepalms.net/Uploaded/file/SolarEnergyLeaderDAIDevelop... 30 July 2013]<br />
<br />
Radio Free Europe Radio Liberty: &quot;Iraq: Kurdish oil law poses problem for Baghdad&quot;, 6th November 2006.&nbsp;<a href="http://www.rferl.org/content/article/1072596.html">http://www.rferl.org/... [Accessed 30 July 2013]<br />
<br />
Iraq Energy: &quot;Iraq government kicks off $186B five-year development plan report&quot;, 6th July 2010.&nbsp;<a href="http://www.iraqenergy.org/news/?detailof=277&amp;content=Iraqi-Govt-Kick...$186B-Five-Year-Development-Plan-Report-">http://www.iraqenergy.org/news/?detailof=277&amp;content=Iraqi-Govt-Kick...$186B-Five-Year-Development-Plan-Report-</a>&nbsp;[Accessed 30 July 2013]<br />
<br />
EUROPA.eu: &quot;EU and Iraq sign a strategic energy partnership memorandum of understanding&quot;, 18th January 2010.&nbsp;<a href="http://europa.eu/rapid/press-release_IP-10-29_en.htm">http://europa.eu/r... </a>[Accessed 30 July 2013]<br />
<br />
The National (UAE): &quot;Syria and Kurdistan to build wind farms&quot;, 6th February 2010.&nbsp;<a href="http://blogs.thenational.ae/business/the-grid/syria-and-kurdistan-to-bui... 30 July 2013]