Iraq joined China’s Belt and Road Initiative (BRI) in October 2019, and China subsequently started working with the Iraqi government in building large solar farms. These solar projects in have included a 1 gigawatt (GW) project near Basra and a 730 megawatt (MW) project near Rumaila.
These large projects are being led by the state-owned Energy China. The solar collaboration is part of Iraq’s broader strategy to diversify its energy mix and reduce reliance on fossil fuels.
Iraq aims to generate 20-25% of its electricity from renewable sources by 2030, a significant increase from the current figure, where over 98% of electricity is produced from fossil fuels.
The Iraqi government has announced plans to add 12,000 MW of solar energy to the national grid by 2030. This includes a mix of utility-scale plants and smaller installations, such as rooftop solar systems on government buildings and private residences.
The push for renewable energy comes amid chronic electricity shortages in Iraq. While summer demand can reach as high as 62,000 MW, country’s current production capability hovers significantly lower, leading to a projected 34,000 MW deficit in summer 2026.
This shortfall translates into daily power outages lasting up to 22 hours in many regions, forcing citizens and businesses to rely on expensive and polluting private diesel generators. In attempting to bridge this gap, Iraq relies heavily on imported natural gas, particularly from Iran, and flares a significant portion of its own gas due to insufficient processing facilities.
International collaboration is an essential cornerstone of Iraq’s renewable energy strategy. In addition to partnerships with Energy China, Iraq has agreements with PowerChina, Abu Dhabi Future Energy Company (Masdar) and TotalEnergies.
Iraq’s Deputy Prime Minister and Foreign Minister Fuad Hussein and Jin Xin, China’s Assistant Minister of the International Department, recently met in Baghdad to review bilateral relations and future cooperation. The talks covered expanding cooperation under the Belt and Road Initiative, as well as Chinese proposals in governance, development and security.
Deputy PM Hussein said China as a pivotal strategic partner for Iraq, noting that bilateral trade stands at around USD 54 billion and that China is the largest market for Iraqi oil.
Sources:
ChronicleAI, June 6, 2026. https://chronicleai.org/article/iraq-embraces-solar-power-as-scorching-summer-looms-and-blackouts-threaten-stability
Iraq Industry & Trade News, December 16, 2025. https://www.iraq-businessnews.com/2025/12/16/iraq-china-discuss-strategic-partnership/
Arabian Post, 6 May 2025. https://thearabianpost.com/iraq-accelerates-solar-energy-push-with-masdar-collaboration/
