Iraq has approved a sum of one trillion Iraqi dinars ($680 million) for renewable power projects to increase the use of the clean source of energy and slash reliance on imported electricity, an official was quoted on Tuesday as saying. 

The Iraqi Central Bank decided to allocate the funds in 2021 to support solar power projects, some of which have been awarded to a number of foreign companies. 

“In 2021, we launched a renewable energy initiative to support the sector…this initiative involved the allocation of one trillion dinars for solar power projects,” Central Bank Deputy Governor Ihsan Al-Yasiri told a local seminar on renewable energy in Iraq. 

Quoted by Aliqtisad News and other Iraq publications, Yasiri said the initiative aims to “expand clean sources of energy, support the environment and tackle power shortages.” 

Speaking at the seminar in Baghdad, head of the National Investment Commission Suha Al-Najjar said solar power projects awarded to foreign firms over the past months would produce nearly 7.5 gigawatts (GW) of electricity. 

“We urge local and global companies to take advantage of the Central Bank initiative in the construction of more solar power projects in Iraq,” she added. 

Iraq said in early 2022 it intends to award more solar power projects within plans to boost renewable energy production to 10 GW by 2030. 

A large part of Iraq’s electricity shortage is met by imports from Iran while there are plans to get power supplies through the connection with the common electricity grid in neighboring Gulf states. 

Iraq is suffering from severe power supply shortages due to damage caused to the energy sector during the war, making it heavily reliant on imported energy mainly from nearby Iran.