Masdar will bring its vast expertise in renewable energy to develop solar photovoltaic (PV) projects in the Republic of Iraq.
The Mubadala Investment Company subsidiary announced it signed a strategic agreement with Iraq for a minimum total capacity of two gigawatts (GW).
Heads of Agreement (HOA) were signed at a virtual ceremony by Majid A Hantosh, Minister of Electricity, the Republic of Iraq; Suha Al-Najar, President of the National Investment Commission for the Republic of Iraq, and Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar. The signing took place in the presence of Ihsan Abdul Jabbar Ismail, Minister of Oil for the Republic of Iraq; Suhail Al Mazroui, Minister of Energy for the UAE, and Dr Thani Al Zeyoudi, the Minister of State for Foreign Trade for the UAE.
Ihsan Abdul Jabbar Ismail said: “The government intends to increase and enhance the national production of clean energy. Through this agreement with Masdar, we will generate 2 GW of solar power through projects in central and southern part of the country.
“Iraq is targeting 20 to 25% of energy coming from renewable sources, rather than fossil fuels, and equivalent of 10 to 12 GW. This agreement with Masdar, a global leader in renewable energy, is an important step in the development of the clean energy investment sector and the exploitation of solar energy in Iraq.”
The project is one of the largest renewable photovoltaic solar projects in the Middle East, and falls within the vision of Iraq’s sustainable transition plan 2021-2030. The business model is Independent Power Producer, and the investment will be according to law13-2006 of the National Investment Commission.
Al Mazroui added: “We are grateful to the Government of Iraq for providing Masdar with the opportunity to contribute to the implementation of their renewable energy strategy. The UAE is committed to working with the Republic of Iraq to develop sustainable energy resources. This initiative also highlights the importance of public and private sector partnerships in finding affordable solutions.
“Masdar has been a pioneer in developing clean energy projects, and is now active in more than 30 countries around the world with a total value of more than USD20 billion and a production capacity exceeding 11 gigawatts. Masdar will leverage the expertise it has built up through these projects to support the Republic of Iraq on its clean energy journey.”
Dr Al Zeyoudi underlined the strong brotherly relations that unite the UAE and the Republic of Iraq, supported by many deep political, social and economic ties, and driven by the keenness of the leadership of the two countries to enhance cooperation in all fields.
He pointed out that the cooperation between Masdar and Iraq will add significant value to the bilateral partnerships in addressing the challenges posed by climate change and keeping pace with the growing demand for energy. He also affirmed the UAE’s keenness to facilitate channels of technology transfer, enrich knowledge and encourage the exchange of the best and most successful experiences to promote economic development in Iraq.
Mohamed Jameel Al Ramahi, CEO of Masdar, said: “This agreement will define the path for the development of clean energy solutions that will drive growth in the Republic of Iraq and help meet its climate goals. The UAE shares Iraq’s commitment to diversify away from a dependence on oil & gas, and to accelerate the transition to clean energy sources.
“We are proud to support the Government of Iraq on this vital stage in its clean energy journey and we will leverage our expertise to deliver a more sustainable future for the nation.”
Iraq, the second-largest oil producer in the Organisation of Petroleum Exporting Countries (OPEC), is looking to increase the percentage of renewables in its total power production capacity by the end of this decade to address supply issues and meet climate objectives.
