Masdar, commonly known as the Abu Dhabi Future Energy Company, announced a strategic agreement with Iraq to construct solar photovoltaic (PV) facilities with a minimum total capacity of two gigatonnes (GW).

Iraqi Minister of Electricity Majid A. Hantosh, President of the National Investment Commission of Iraq Suha Al-Najar, and Masdar CEO Mohamed Jameel Al Ramahi signed the deal in a virtual ceremony.

The signing happened in the presence of, Iraqi Oil Minister Ihsan Abdul Jabbar Ismail, UAE Minister of Energy and Infrastructure Suhail bin Mohammed Al Mazrouei, and UAE Minister of State for Foreign Trade Dr. Thani bin Ahmed Al Zeyoudi.

In response to the deal, Ismail stated: "The administration aims to grow and improve national clean energy output. We would generate 2 GW of solar electricity through projects in central and southern Iraq under our arrangement with Masdar. Iraq is aiming for 20 to 25% of its energy to come from renewable energy sources instead of fossil fuels, which is equivalent to 10 to 12 GW."

"This deal with Masdar, a global leader in sustainable energy, is a significant step forward in the growth of the clean energy investment industry and use of solar energy in Iraq."

Al Mazrouei, stated: "We are thankful to the Iraqi government for allowing Masdar to contribute to the realization of Iraq's renewable energy policy. The UAE is committed to partnering with Iraq in the development of renewable energy resources. This initiative also emphasizes the need for collaboration between the public and private sectors in identifying cost-effective solutions."

"Masdar has become a pioneer in establishing sustainable energy projects, and now it is engaged in more than 30 countries worldwide, with a total amount of more than US$20 billion and a manufacturing capacity of more than 11 gigatonnes. Masdar would use the experience it has acquired from these initiatives to assist Iraq on its renewable energy path "He stated.

Al Zeyoudi emphasized the UAE and Iraq's strong brotherly relations, which are backed by numerous deep political, social, and economic links and motivated by both leaderships' desire to further cooperation in all domains, especially significant areas of shared interest.

He stated that this collaboration would bring considerable value to the Emirati and Iraqi collaborations in solving climate change problems and keeping up with rising energy demand. This will also add to Iraqi attempts to develop excellent projects aiming at producing 10 gigatonnes of solar energy by 2025.

Al Zeyoudi reaffirmed the UAE's readiness to enable technology transfer channels, enhance knowledge, and facilitate the sharing of the finest and most successful experiences to support Iraq's economic growth.

Al-Najar, stated: "The project is one of the largest renewable photovoltaic solar projects in the Middle East, so it is part of Iraq's 2021- 2030 sustainable transition strategy. The project provides 2 GW of green energy to Iraq's national grid."

She also stated that only a steering group comprised of both parties has been formed to achieve this aim. The company concept is Independent Power Producer, and the investment will be made under the National Investment Commission Law 13-2006.

According to Al-Najar: "The project guarantees clean and sustainable energy production for various locations in Iraq, and the displacement of carbon dioxide emissions from fossil fuel generation. This project would also create new employment in the energy industry, with over 2,000 people needed for project construction and operation."

According to Al Ramahi: "The UAE supports Iraq's commitment to shifting away from reliance on oil and gas and accelerating the transition to sustainable energy sources. We are honored to assist the Government of Iraq at this critical juncture with its renewable energy journey, and we'll use our experience to help the country achieve a more sustainable future."

Iraq, the Organization of Petroleum Exporting Countries (OPEC) second-largest oil producer, hopes to raise the proportion of renewables in its overall power production capacity towards the end of this decade in an attempt to face supply concerns and achieve climate targets. Iraq, which joined the Paris Agreement on Climate Change this year, has some of the most appealing sun irradiation levels in the area.