Meed | Scatec quits Iraq solar projects

Scatec quits Iraq solar projects

17 April 2023

Norwegian utility developer and investor Scatec is understood to have exited deals to develop two solar independent power projects (IPPs) with a total combined capacity of 525MW in Iraq.

According to local and international media reports, the difficulty and delays in negotiations resulted in the firm’s decision to exit the projects, for which power-purchase agreements (PPAs) are understood to have not yet been signed.

The deals were announced in October 2021, as MEED reported. Scatec was to develop the Karbala and Iskandariya solar IPPs along with Egypt’s Orascom and local firm Iraqi al-Bilal.

The solar power plants are part of the country’s first renewable energy bidding round, announced in 2019.

The other planned solar projects during this round are:

30MW Sawa 1 solar IPP – Muthana province
50MW Sawa 2 solar IPP – Muthana province
50MW Khidhir solar IPP – Muthana province
50MW Jissan solar IPP – Wassit province
50MW Al-Diwania solar IPP – Diwania province

In addition to Scatec, Iraqi authorities have signed preliminary deals to develop solar IPPs across the country with Abu Dhabi-based clean energy developer Masdar, PowerChina and French developer TotalEnergies.

In August 2021, the prime minister’s office announced signing an initial agreement with PowerChina to build solar power plants across the country with an expected capacity of 2,000MW. The planned project will have a 750MW first phase.

Solar projects with a total capacity of 1,000MW also form part of the $27bn deal the Iraq government signed with French giant TotalEnergies, which was announced in September 2021.

In June 2000, MEED reported that Saudi Arabia-based utility developer Acwa Power was undertaking negotiations for two 1,000MW solar PV projects in Iraq.

According to industry sources, the first plant is planned to be built in Saudi Arabia near the border with southern Iraq, while the second facility is in Iraq.

Iraq’s power generation capacity reached more than 18.5GW in 2019, about 6GW short compared with peak demand. The country imports an average of 1,200MW of electricity annually from Iran to augment supply.

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Jennifer Aguinaldo