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Iraq opens first phase of Karbala solar project

25 September 2025

Iraq has inaugurated the first phase of the 300MW Karbala solar power plant, the country’s first utility-scale solar project.

Prime Minister Mohammed Shia Al-Sudani launched the plant on 21 September in the presence of Minister of Electricity Ziad Fadhil.

The facility has started generating 22MW, which will increase to 75MW within two months, with full capacity of 300MW scheduled for late 2025, according to a statement from the Prime Minister’s office.

The $360m project is being developed by a consortium of Norway’s Scatec Solar, Egypt’s Orascom Construction and Iraq’s Al-Bilal Group, which is also acting as the engineering, procurement and construction contractor.

The prime minister said the Karbala plant marks the first production of solar electricity to be included in Iraq’s national grid.

The project is being implemented under the authority of the National Investment Commission (NIC), while the General Company for Electricity Production, part of the Electricity Ministry, is supervising construction and grid integration.

Iraq continues to face chronic electricity shortages, with peak summer demand far above available supply. According to Iraq’s Electricity Ministry, the country currently generates up to 25,500MW, but needs nearly 54,000MW to meet 24‑hour demand.

The government has set a target of adding more than 7GW of solar capacity by 2030 to reduce reliance on oil and gas generation.

In August, Iraq’s government approved five major power generation projects, with a combined capacity exceeding 10,000MW.

The projects include three major independent power producer (IPP) combined-cycle plants at Al-Faw, Abu Ghraib and Kirkuk, totalling 7,500MW. 

The Iraqi cabinet also approved the development of two thermal power plants, one in Najaf and the other in Yousifiya, with output capacities of 1,500MW and 1,800MW, respectively.

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Mark Dowdall

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