Al-Bilal Group Secures Green Light For 525MW Solar Projects In Iraq

Representational image. Credit: Canva

The Iraqi cabinet has given the green light to a power purchase agreement (PPA) with Al-Bilal Group for two major solar PV projects. The projects, located in Karbala and Iskandariya, have a combined capacity of 525MW.


Al-Bilal secured the contracts during Iraq’s inaugural solar bid round in early 2021, but the venture faced delays after Norway’s Scatec, a partner in the projects, withdrew in April 2023 due to concerns over the operating environment.

Under the PPA, the power purchase tariff has been reduced from $0.055/kWh to $0.045/kWh, a move expected to bolster the financial viability of the initiatives. The Karbala and Iskandariya solar PV projects are scheduled for completion in 2025, and upon operation, they will generate sufficient electricity to power over 500,000 homes.


The approval of these solar projects marks a significant stride for Iraq’s renewable energy sector. With ample potential for solar energy, these projects contribute to the country’s efforts to diversify its energy mix and reduce reliance on fossil fuels.

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Notable details about the projects include their locations in the Karbala and Iskandariya provinces, about 100 and 50 kilometers south of Baghdad, respectively. Both projects will utilize photovoltaic (PV) technology and require an estimated investment cost of $500 million. During construction and operation, the initiatives are expected to create over 1,000 job opportunities.

The approval of these projects is a momentous achievement for Iraq’s renewable energy sector, with hopes that they will pave the way for more renewable energy ventures in the nation’s future.

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