Meed | TotalEnergies signs 1GW Iraq licence

TotalEnergies signs 1GW Iraq licence

9 July 2024

French energy major TotalEnergies has signed an investment licence with Iraq's National Investment Commission (NUC) to establish a 1,000MW solar photovoltaic (PV) power plant in southern Iraq.

It is the latest development for the solar PV scheme, which forms part of TotalEnergies' $27bn energy project with the Iraqi government.

In August last year, MEED reported that TotalEnergies was holding discussions with several engineering, procurement and construction (EPC) contractors for the 1,000MW solar PV power plant.

Iraq's Electricity Ministry previously approved the project, which will be Iraq’s first solar independent power producer (IPP) scheme expected to reach the implementation phase.

The levelised electricity cost for the project, to be located in the Artawi oil field in Basra, is 3.5 $cents a kilowatt-hour.

“That price is comparatively high, but reasonable if you take Iraq’s conditions [into account],” a source told MEED in June last year.

Neither the Electricity Ministry nor the French energy giant has confirmed the tariff for the project.

$27bn deal

The French energy company activated its four contracts under the $27bn scheme, starting 16 August 2023, following several years of delay.

In addition to the solar PV IPP, the three main projects that make up the $27bn deal include:

A treatment facility for associated natural gas from five southern oil fields – West Qurna 2, Majnoon, Artawi (also known as Ratawi), Tuba and Luhais
The $4bn common seawater supply project
Development of the Artawi field

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Jennifer Aguinaldo