Ali Zuweid’s Political Programme
Energy, Infrastructure, Water, Environment and Urban Development
Renewable Energy, Distributed Generation and Energy Efficiency Law
Executive summary
The bill regulates three pathways that must work together: utility-scale renewable investment; enabling citizens and businesses to generate distributed power and sell surpluses on fair terms; and improving energy efficiency so expanded installed capacity does not become a permanent race against growing waste and demand. It establishes rules for tenders, connection, storage, energy communities, appliance and building standards, energy performance contracts and guarantees of origin.
The draft adopts institutional separation: the Ministry sets policy and plans; the Electricity Market Regulatory Authority regulates connection, metering, settlement and the market; the Ministry of Environment handles climate and environmental responsibilities; and a coordinating national council prevents conflicting decisions. This avoids a parallel regulator or duplication of existing institutions.
For distributed generation, the draft makes net billing the default regulatory instrument, while permitting net metering where its benefits are demonstrated. Rooftop systems should neither become an open-ended, opaque subsidy nor deprive prosumers of fair value for surplus power. The draft also requires a simplified pathway for small systems and safeguards for consumers and equipment safety.
Current constitutional and legislative context
Regulation rests on a dual constitutional basis. Article 33 recognises the individual’s right to live in sound environmental conditions and requires the state to protect the environment and biodiversity. Article 114 makes regulation of principal electrical energy sources and their distribution, and environmental policymaking, shared responsibilities of federal and regional authorities. The Law therefore requires federal–regional coordination rather than a centralised model disregarding the allocation of powers.
Iraq has an existing Ministry of Electricity framework under Ministry of Electricity Law No. 53 of 2017 and acceded to the Paris Agreement through Law No. 31 of 2020. On 23 August 2026, the Council of Representatives held the first reading of the Renewable Energy Regulation Bill, which remained under discussion in the Electricity and Energy Committee at its meeting on 4 October 2026. Legislative need is therefore real and the parliamentary process active. This proposal has a broader scope than generation projects alone, integrating distributed generation, energy efficiency, flexibility and market governance into one structure.
The updated 2025 nationally determined contributions document shows continued heavy dependence on fossil fuels for electricity production. The International Renewable Energy Agency’s 2025 assessment found renewables still account for a small share of supply and that transition requires clearer targets, a more capable grid and a stable investment and legal framework. The International Energy Agency’s assessment of Iraq’s climate resilience also highlighted heat, dust and water scarcity impacts on electricity and solar energy, making climate resilience a design requirement rather than an environmental add-on.
Proposed legislative policy
The Law is based on renewable energy being part of the electricity market, not a separate sector. A large solar project requires a competitive contract, connection and balancing; a household rooftop system requires a meter, settlement and consumer protection; and energy efficiency reduces the need for additional generation and grid investment. The Law therefore combines specific provisions for these pathways while retaining general market functions in the Electricity Market Regulation Law.
| Area | Legislative rule |
|---|---|
| Large projects | Competition as the general rule, bankable contracts, transparent grid costs and no automatic state risk guarantees. |
| Distributed generation | Simplified registration, hosting-capacity maps, bidirectional meters and net billing with published export values. |
| Energy efficiency | Periodic plans and targets, audits of large facilities, appliance and building performance standards, and energy performance contracts. |
| Storage and flexibility | Separate treatment preventing double charging and enabling participation in ancillary services and demand response. |
| Financing | Temporary, funded and transparent incentives; no off-treasury fund or tax exemption by administrative instruction. |
| Climate and environment | Impact and climate-resilience assessment, end-of-life management and separation of guarantees of origin from carbon credits. |
| Governance | No parallel regulator; clear coordination among the Ministry, Authority, environment, standardisation and investment bodies. |
Text of the draft Law
Proposed enactment formula: In the name of the people, Presidency of the Republic, pursuant to the enactment of the Council of Representatives and ratification by the President under the Constitution, the following Law is issued:
Chapter One — General provisions
Article 1 — Title
This Law shall be called the ‘Renewable Energy, Distributed Generation and Energy Efficiency Law’, referred to herein as ‘the Law’.
Article 2 — Objectives
This Law establishes an integrated legislative framework to accelerate safe, economical renewable energy use in the Republic of Iraq, regulate distributed generation and prosumers, improve energy efficiency, prepare the market for investment and regulated competition, and reduce fuel dependence in electricity production, strengthening energy security, environmental protection and fiscal sustainability.
It links renewable-energy policy with efficiency, grid resilience, storage and demand management, so generation does not expand independently of the system’s capacity for integration, metering, settlement and maintenance.
Article 3 — Governing principles
This Law shall apply according to security of supply, economic efficiency, technological neutrality, non-discrimination, transparency, competition, consumer protection, fair cost allocation, environmental and biodiversity protection, efficient water use, climate resilience, a just transition and avoidance of unfunded treasury obligations.
Priority shall go to solutions achieving the lowest total system cost over an asset’s lifetime, considering grid, balancing, storage, maintenance and environmental costs rather than nominal generation cost alone.
Article 4 — Scope
This Law applies to projects and systems producing electricity, heat or fuel from renewable sources; distributed generation; associated storage facilities; energy-efficiency and demand-management services; and public, private and mixed entities and individuals carrying out activities regulated by it.
It does not prejudice legislation governing electricity, the environment, investment, competition, consumer protection, construction or waste management. Its provisions operate as special rules in matters expressly regulated.
Article 5 — Definitions
The following terms have the meanings indicated: Ministry: the federal Ministry of Electricity. Authority: the Federal Electricity Market Regulatory Authority responsible for market and grid regulation under the Electricity Market Regulation Law. Council: the National Council for Renewable Energy and Energy Efficiency established under this Law. Centre: the Ministry’s technical unit responsible for renewable energy and energy efficiency. Renewable energy: energy from naturally and sustainably replenishing sources, including solar, wind, hydropower, geothermal energy, biomass and biogas meeting sustainability criteria. Distributed generation: generation connected to the distribution network or behind the consumer’s meter, within capacity limits set by regulation. Prosumer: a person consuming electricity and generating it from a renewable source on their premises or through a permitted arrangement, who may inject surplus electricity into the grid. Net metering: quantitative settlement of imported and exported energy over a specified period under an approved system. Net billing: financial settlement separating the price of imported energy from the value of exported energy. Renewable energy community: a voluntarily participating entity enabling members to produce, consume, share or store renewable energy under this Law. Energy efficiency: reducing the energy needed to provide an equivalent or better service or output. Energy service company: a person providing services delivering measurable savings, whose remuneration may depend on savings achieved. Guarantee of origin: an electronic record certifying the source and environmental attributes of a specified quantity of renewable energy. Storage: conversion of electrical energy into a retainable form for later return to the grid or consumption.
Article 6 — Eligible renewable sources
Regulations shall identify eligible sources and technologies according to sustainability, safety and environmental viability. Waste or biomass qualifies for incentives as renewable energy only where sustainability and protection of health, air, water and land requirements are met.
Burning fossil fuels or combining them with a renewable source does not automatically make all output renewable; only the eligible portion shall be counted under metering and traceability rules.
Article 7 — Basic participant rights
Subject to technical and regulatory conditions, everyone may apply to establish a renewable project or distributed-generation system, access non-discriminatory connection procedures, receive clear information on requirements, fees, timelines and available grid capacity, and challenge regulatory decisions.
Connection shall not be refused or delayed for non-technical or undocumented reasons. The competent authority shall provide written reasons for refusal and possible remedies.
Article 8 — Property, environment and public interest protection
This Law does not authorise taking private property or restricting its use except under the Constitution and law, with fair compensation where applicable. No project is exempt from environmental approvals, safety requirements or protection of archaeological sites and water resources.
Land allocation for large projects shall prioritise degraded land or land without high agricultural value where technically suitable, avoiding fragmentation of natural habitats and harm to sensitive areas.
Article 9 — Relationship to electricity market regulation
Grid connection, metering, settlement, balancing services, regulated tariffs and general electricity licensing are governed by the Electricity Market Regulation Law, market rules and approved codes. This Law establishes provisions specific to renewables, distributed generation and energy efficiency.
No parallel body shall be created under this Law to exercise the Authority’s economic or technical electricity-market responsibilities.
Chapter Two — Governance and institutional responsibilities
Article 10 — National policy
The Ministry, coordinating with competent authorities, shall prepare national renewable-energy and energy-efficiency policy for Council of Ministers approval. It shall include a phased timeline and estimates of grid capacity, costs, financing and effects on fuel, emissions and local employment.
Article 11 — Establishing the National Council
A coordinating ‘National Council for Renewable Energy and Energy Efficiency’ shall be established, chaired by the Minister of Electricity and comprising appropriately ranked representatives of the Ministries of Environment, Finance, Planning, Oil, Industry and Minerals, Construction, Housing, Municipalities and Public Works, Water Resources and Agriculture; the Authority; the National Investment Commission; the Central Organization for Standardization and Quality Control; and representatives of the Kurdistan Region and governorates under arrangements set by regulation.
The Council coordinates and develops policy; it does not license, set tariffs or resolve disputes falling within the Authority’s or another independent body’s jurisdiction.
Article 12 — Council responsibilities
The Council shall align sectoral plans, propose national priorities, review renewable-energy and efficiency plans, resolve non-judicial institutional conflicts, monitor data and indicators, recommend legislative and regulatory reforms, and integrate electricity, environmental, investment, construction, water and industrial policies.
It shall submit a public annual report to the Council of Ministers and Council of Representatives on progress, obstacles and proposed corrective actions.
Article 13 — Technical Centre
The Ministry’s existing renewable-energy unit or centre, reorganised where needed, shall provide technical support, manage atlases, databases, studies, modelling and training, and advise public entities. It shall have no regulatory or commercial powers conflicting with the Authority or market participants.
Article 14 — Authority responsibilities
Within its remit, the Authority shall establish renewable-generation registration and licensing rules, connection procedures, net billing or net metering, regulation of aggregators and flexibility providers, export-value methodologies, non-discrimination safeguards and oversight of service quality and code compliance.
The Authority shall publish decisions, methodologies and non-confidential data so consumers and investors can anticipate rules and costs.
Article 15 — Ministry of Environment responsibilities
The Ministry of Environment shall implement environmental legislation and impact-assessment requirements, coordinate emissions-reduction accounting and Iraq’s climate commitments, administer Paris Agreement arrangements and emissions registers within its remit, and prevent double counting of internationally transferred reductions.
Article 16 — Standardisation and accreditation
The Central Organization for Standardization and Quality Control, coordinating with the Ministry, Authority and sectoral bodies, shall issue or adopt mandatory standards for relevant equipment and systems and accredit testing laboratories and conformity-assessment bodies under applicable legislation.
Domestic standards must not isolate the Iraqi market without safety or climatic justification. Equivalent international standards may be recognised through a published system.
Article 17 — Preventing overlapping responsibilities
Regulations shall define governmental focal points and responsibilities so investors or citizens are not repeatedly asked for the same information or document. A single procedural portal shall operate where digital infrastructure permits.
Where an administrative circular conflicts with this Law or a regulation under it, the higher-ranking legal rule applies. Unpublished instructions must not obstruct projects.
Chapter Three — National planning, targets and data
Article 18 — National plan
Every five years, the Ministry shall prepare a national renewable-energy and efficiency plan, reviewed annually and submitted through the Council to the Council of Ministers for approval. It shall cover capacity, generation, efficiency, distributed-generation and storage targets and grid, investment, financing, workforce and climate-resilience requirements.
Article 19 — Setting targets
On the Ministry’s proposal and a published technical and financial study, the Council of Ministers shall set medium- and long-term national renewable-share and efficiency targets, considering nationally determined contributions, international obligations, supply security, grid capability and fiscal burden.
An approved target may be lowered only by a reasoned decision accompanied by a published assessment of causes, alternatives and impacts.
Article 20 — No rigid numerical statutory targets
This Law does not itself create an obligation to purchase a specified quantity or capacity or guarantee investment returns. Operational targets shall be set periodically under the preceding Article, allowing adjustment to demand, technology, financing costs and grid development.
Article 21 — Resource atlas
The Centre shall establish and update a digital national atlas of solar, wind and other resources and suitability maps linking resources to grid capacity, land, water, environmental constraints and climate risks. Core data shall be published in open formats unless disclosure is legally prohibited.
Measurements shall be verified on site before contracting major projects. The atlas alone does not guarantee resources at any particular location.
Article 22 — Grid-capacity map
The grid operator and distribution companies, under Authority oversight, shall periodically publish maps of available capacity, expected constraints, bottlenecks and connection queues, protecting necessary sensitive security information.
The map shall guide investment, reduce applications that cannot be connected and lower repeated study costs.
Article 23 — National database
A unified database shall record licensed and built projects, installed capacities and actual generation, distributed systems, storage, guarantees of origin and efficiency indicators, linking electronically to relevant bodies under data-protection rules.
Article 24 — Open data
Aggregate generation, connection, competitive-price, efficiency, processing-time and refusal-reason data shall be published, excluding commercial secrets, personal data and information lawfully protected for security reasons.
Article 25 — Climate-resilience assessment
Strategic plans and projects shall assess extreme heat, dust storms, drought, floods, wind, salinity and other relevant hazards. Designs and operation and maintenance plans shall include measures appropriate to location and technology.
Chapter Four — Utility-scale renewable energy projects
Article 26 — Project development methods
Large projects shall be developed according to their nature through competitive tenders, auctions, power purchase agreements, partnerships or private investment under applicable laws. The selected mechanism shall achieve best overall system value with clear risk allocation.
Article 27 — Competition and transparency
Capacity allocations and long-term contracts shall generally be competitive. Qualification and evaluation criteria, guarantees, timetable, connection point and responsibility for grid reinforcement shall be announced in advance.
Direct negotiation is permitted only where procurement or investment laws allow, with reasons published to the extent compatible with commercial confidentiality and national security.
Article 28 — Prequalification
Prequalification may assess financial standing, technical experience, performance record, ability to secure equipment and financing, and environmental compliance. Conditions must not unjustifiably exclude capable Iraqi firms or small businesses from suitable parts of the value chain.
Article 29 — Power purchase agreements
Power purchase agreements shall specify duration, pricing mechanism or competitively determined price, delivery and metering points, outage and curtailment risks, force majeure, changes in law, guarantees, settlement and dispute resolution.
State guarantees for public entities or state-owned companies require legal authority, assessment of explicit and contingent fiscal risks and transparent recording in the relevant fiscal documents.
Article 30 — Project land
Public land shall be allocated through usufruct, lease or another transparent legal mechanism for a period linked to project life. An energy licence alone does not transfer ownership.
Developers shall restore or rehabilitate sites at project end under a plan and appropriate financial provision or guarantee where the technology requires it.
Article 31 — Water and natural resources
Low-water-use technologies shall receive priority in water-scarce areas. Projects requiring substantial operational water shall demonstrate a sustainable source and obtain competent-authority approval.
Cumulative impact assessment of neighbouring projects shall address soil, water, biodiversity and local communities.
Article 32 — Connection and impact studies
The grid operator shall provide a connection study within the standard period set by the Authority, identifying required works, costs, alternatives and expected connection date. Broad reinforcement costs benefiting multiple users may be charged to a project only under an approved, equitable allocation methodology.
Article 33 — Connection queue
The Authority shall regulate connection queues to prevent speculative capacity reservations, including guarantees, completion milestones and loss of queue position for unjustified failure to progress.
Reserved and released capacity shall be published in aggregate and made available for rapid reallocation.
Article 34 — Curtailment and balancing
Market rules shall govern curtailment of renewable generation for grid security or operational constraints, setting priorities and compensation under contracts and general rules without discrimination.
Producers shall progressively assume forecasting and imbalance responsibilities proportionate to project size and market maturity. Aggregation and storage may reduce costs.
Article 35 — Local content and value
Tenders may include objective criteria supporting local value chains, training, knowledge transfer and Iraqi services, subject to proportionality and transparency and without undermining Iraq’s obligations or competition or unjustifiably raising costs.
No local-content percentage may be imposed without actual supply capacity or where it would give a particular supplier a monopoly.
Article 36 — Decommissioning and end of life
Before operation, developers shall submit end-of-life plans covering equipment removal, reuse or recycling, batteries, oils and hazardous substances, and site restoration. Financial security shall be updated according to periodic cost estimates.
Chapter Five — Distributed generation and prosumers
Article 37 — Right to establish distributed generation
Residential, commercial, industrial and agricultural consumers and public entities may install renewable systems behind the meter or on distribution networks within approved safety, capacity and regulatory limits. Small registered projects under a simplified system do not require full generation licences.
Article 38 — Registration categories
The Authority shall classify distributed generation by capacity, voltage and connection method, applying simplified notification to the smallest systems and graduated technical procedures to larger ones. Households and small businesses shall not face studies disproportionate to their grid impact.
Article 39 — Fast-track approval
The Authority and distribution companies shall provide a fast track for approved standard systems where the connection point has available hosting capacity. An application is deemed accepted when the response deadline passes, unless a safety need or material documentary deficiency is notified to the applicant.
Article 40 — Bidirectional metering
Prosumer systems shall use approved bidirectional or smart meters separately measuring imported and exported energy where needed for settlement. The regulator shall determine meter ownership, installation and maintenance costs fairly and without discrimination.
Article 41 — Net billing as the regulatory default
Net billing shall be the default compensation mechanism for distributed-generation exports unless the Authority adopts another mechanism for a defined category following cost-benefit analysis.
Imported electricity shall be priced at the consumer’s applicable tariff. Exports shall be valued under a published methodology reflecting their system value or avoided energy costs and relevant grid components. The two prices are not automatically equal.
Article 42 — Net metering where justified
The Authority may apply net metering to categories, areas or transitional programmes where a study demonstrates public benefit without unfairly transferring costs to non-participants. Conditions shall be reviewed periodically as uptake increases.
Article 43 — Carry-forward and settlement
Settlement rules shall define credit carry-forward, its maximum duration and treatment of balances at year-end or account closure. Rules must be known before investment and shall not change retrospectively except for legal necessity or material safety reasons.
Article 44 — No discriminatory charges
No additional fixed or access charges shall be imposed solely because a prosumer owns a renewable system. The Authority may approve charges reflecting actual grid-use and backup-service costs where supported by a published study and applied without discrimination.
Article 45 — Behind-the-meter storage
Consumers may add approved batteries or other storage, subject to safety, reverse-flow protection and fire requirements. Exported stored energy may be counted as renewable only where its charging source can be verified.
Article 46 — Leasing and third-party finance
Systems may be installed through leasing, behind-the-meter power purchase agreements or third-party financing where contracts clearly define equipment ownership, liability, maintenance and termination rights.
The competent authority shall establish a simple disclosure form protecting consumers from misleading terms or unclear long-term obligations.
Article 47 — Multi-unit buildings
The Authority shall regulate shared or virtual generation arrangements for apartment buildings and commercial complexes, allowing output credits from a shared system to be allocated to participants’ meters according to published, verifiable proportions.
Article 48 — Tenants and property owners
Arrangements may allow tenants to benefit from on-site systems with owners’ consent or under leases. Tenants must not bear capital costs or special tariffs without disclosure and valid consent.
Article 49 — Government facilities
Subject to feasibility and appropriations, public entities shall prioritise distributed generation and efficiency in buildings with high daytime loads, using performance contracts or competition to avoid inefficient capital spending.
Actual performance and energy savings from demonstration projects shall be published to inform subsequent procurement.
Article 50 — Agricultural and rural facilities
Specific programmes may support irrigation, farms, villages and small businesses while considering pumping impacts on groundwater. Lower energy costs do not justify withdrawals beyond approved water allocations or licences.
Chapter Six — Energy communities, mini-grids and remote areas
Article 51 — Renewable energy communities
A renewable energy community may be established as a company, cooperative, association or other lawful arrangement, with voluntary participation and transparent voting and benefit- and cost-sharing rules. It must not circumvent licensing or consumer-protection requirements.
Article 52 — Energy sharing
The Authority shall regulate sharing of generation among community members through the distribution network or within one complex, setting network, settlement and metering charges reflecting actual use without unfunded exemptions from network costs.
Article 53 — Mini-grids
Mini-grids may connect to the public grid or operate in island mode. Licensing or registration shall define safety, electricity quality, consumer protection, island operation and resynchronisation requirements.
Article 54 — Remote-area electrification
Standalone or mini-grid solutions may be adopted where extending the main grid costs more than decentralised alternatives. Funding entities shall compare life-cycle costs, service reliability and residents’ ability to pay.
Article 55 — Critical loads
Mini-grids for hospitals, emergency centres, water, communications and vital facilities shall provide independent operation for a period suited to local risks. Cybersecurity, storage and backup-fuel requirements shall reflect criticality.
Article 56 — Preventing local monopoly abuse
Where a mini-grid operator is the sole supplier, it shall be subject to tariff, service and consumer-protection rules appropriate to a natural monopoly. Service disconnection or price changes outside approved rules are prohibited.
Article 57 — Later integration with the grid
When the public grid reaches an area served by a mini-grid, the Authority shall establish fair arrangements for connection, asset purchase, continued operation or conversion to a local distributor, protecting legitimate investment and consumers alike.
Chapter Seven — Energy efficiency and demand management
Article 58 — National energy-efficiency plan
The national plan shall include an efficiency programme specifying baselines, sectoral targets, measures, responsibilities, funding sources and measurement and verification methods, updated at least every five years.
Article 59 — Public-sector leadership in efficiency
Public entities shall plan to reduce energy consumption in buildings, facilities and fleets they manage, prioritising measures with reasonable payback and feasible maintenance, and publish standardised consumption indicators for large buildings under a unified system.
Article 60 — Energy audits for large facilities
Regulations shall set objective thresholds requiring energy-intensive industrial, commercial and service facilities to undergo periodic audits by qualified auditors or operate a recognised energy-management system.
Owners need not implement every recommendation but shall submit a response plan and explain non-implementation of demonstrably cost-effective measures.
Article 61 — Energy-management systems
International or equivalent national energy-management systems may satisfy periodic audit requirements where supported by measured data, performance review and continuous improvement.
Article 62 — Building efficiency
Energy-performance requirements for new and existing buildings shall align with the National Building Law and codes, covering thermal envelopes, air conditioning, lighting, water heating, metering, controls and solar energy where feasible.
This Law creates no parallel building code; it requires energy provisions in the national code and periodic updates reflecting Iraq’s climate.
Article 63 — Building energy-performance certificates
Energy-performance certificates may be phased in for large public and commercial buildings and new buildings. Certificates shall provide understandable indicators of expected or measured consumption, not guarantee a particular bill.
Article 64 — Minimum appliance-performance standards
Standards and regulations shall set minimum efficiency levels for major energy-consuming equipment, including air conditioners, motors, pumps, lighting, refrigerators and heaters, reviewed periodically as markets and technology develop.
Article 65 — Energy-efficiency labels
Appliances covered by efficiency labelling may not be offered for sale without valid, verifiable labels stating performance class and consumption under a unified test method. Unsubstantiated efficiency claims are prohibited.
Article 66 — Imports and conformity
Customs, the Central Organization for Standardization and competent bodies shall coordinate to prevent entry of equipment failing mandatory safety and efficiency standards, using traceable, risk-based inspection without unnecessary customs delays.
Article 67 — Motors and industrial systems
Efficiency policies shall assess integrated motor, pump, compressed-air, steam and heat-recovery systems rather than individual-device efficiency alone where system-level savings are greater.
Article 68 — Demand management
The Authority and market operator may adopt demand-response programmes, time-of-use tariffs and peak-reduction incentives. Aggregators and consumers may provide flexibility under baseline measurement and performance-verification rules.
Article 69 — Energy performance contracts
Energy performance contracts linking providers’ payments wholly or partly to measured energy savings are recognised. Regulations shall specify minimum disclosure, baseline methodology and adjustments, verification and dispute resolution.
Article 70 — Energy service companies
Registration of energy service companies and auditors may be voluntary or mandatory according to project size, based on professional competence, insurance, liability and performance. It must not restrict competition or confine the market to a few companies.
Article 71 — Efficient public procurement
Public purchasing of appliances, vehicles, equipment and buildings shall consider life-cycle cost, energy use and maintenance. Exceptions shall be defined where alternatives are unavailable or functionally unsuitable.
Article 72 — Protecting vulnerable groups
Funded or supported efficiency programmes shall enable low-income households and small businesses to participate. Insulation, efficient cooling and solar power for essential facilities may receive priority where savings are measurable.
Chapter Eight — Grid, storage and flexibility
Article 73 — System-security priority
Connection rights or development priority shall not undermine electricity-system security. The Authority and grid operator may impose proportionate technical requirements for protection, voltage, frequency, responsiveness and remote control where projects require them.
Article 74 — Updating grid codes
Transmission and distribution codes shall be reviewed periodically to accommodate higher shares of variable resources, storage and distributed generation. Requirements shall rest on documented stability studies and remain technically necessary.
Article 75 — Forecasting and operational data
Large producers and renewable-portfolio operators shall supply operational data and forecasts under the rules. Competent bodies shall provide weather and grid data needed to improve forecasting where lawfully publishable.
Article 76 — Storage as a separate asset
Storage may be licensed independently or within generation, network or consumer projects. It shall not be treated as both generation and consumption for charging purposes where that creates duplicate costs without a corresponding actual service.
Article 77 — Network ownership of storage
Transmission or distribution operators shall generally not own competitive storage unless the Authority establishes that the market offers no suitable alternative and the asset is needed for a network function. Ownership shall be controlled to prevent displacement of independent providers.
Article 78 — Ancillary services
Market rules shall allow qualifying renewables, storage and demand response to provide frequency, reserve, voltage, black-start and other services. Procurement shall be competitive wherever possible.
Article 79 — Hybrid connections
Solar, wind, storage or other eligible sources may share a connection point. Connection capacity shall reflect the agreed maximum rather than the sum of rated capacities where controls prevent exceedance.
Article 80 — Dust-storm and heat resilience
Standards and operating plans shall consider dust accumulation, high temperatures and their effects on panels, transformers, batteries and cooling. Large projects shall have maintenance and cleaning programmes minimising water use while considering site conditions.
Article 81 — Cybersecurity
Remotely controlled systems, smart meters, generation and storage facilities shall meet cybersecurity and critical-infrastructure requirements under relevant legislation, proportionate to risk and facility size.
Chapter Nine — Equipment, installers, consumer protection and end of life
Article 82 — Equipment safety
Inverters, batteries, panels, turbines and protective devices subject to mandatory standards may not be imported, manufactured, sold or installed unless compliant. Traceability and warranty documents and Arabic operating instructions shall accompany products supplied to final consumers.
Article 83 — Installer accreditation
The Ministry, with professional bodies, specialist associations and the standardisation system, shall accredit or qualify installers of systems requiring specified safety competence, with training, testing and renewal pathways. Accreditation must not be confined to one commercial training provider.
Article 84 — Consumer contracts
System sale or installation contracts shall state rated capacity, principal components, warranties, generation forecasts based on disclosed assumptions, connection responsibility, total cost, maintenance plan and complaint mechanism.
Claims that a system eliminates bills or guarantees returns are prohibited unless they form measurable contractual commitments based on clear conditions.
Article 85 — Warranty and after-sales service
Regulations shall establish minimum disclosure of product and installation warranties and availability of spare parts or alternatives. Contract terms must not waive supplier liability for safety defects or non-conformity.
Article 86 — Market recall
Competent authorities may stop sales or recall equipment proven dangerous or non-compliant, notifying consumers and determining supplier or importer responsibility for repair, replacement or refund under consumer-protection law and related rules.
Article 87 — Batteries and hazardous materials
Batteries and components containing hazardous substances shall follow storage, transport, take-back, reuse, recycling and safe-disposal rules. Extended producer responsibility shall align with waste-management and environmental legislation.
Article 88 — End-of-life panels
Collection, reuse and recycling systems for photovoltaic panels and large equipment shall develop progressively with the market. Regulations shall allocate manufacturer, importer, developer and owner responsibilities to prevent unfunded waste accumulation.
Article 89 — Fire and electrical safety
Facilities shall comply with earthing, insulation, disconnection, firefighting, safe-access and warning-label requirements. Competent bodies shall coordinate building battery requirements with civil defence and the national building code.
Article 90 — Complaints
Consumers shall have clear complaint routes to suppliers or installers and then the competent body or Authority according to the dispute, with response deadlines and electronic and written channels, without prejudice to court access.
Chapter Ten — Financing, incentives, guarantees of origin and carbon attributes
Article 91 — Incentive principles
Within existing laws and the budget, the Council of Ministers may approve temporary, targeted renewable-energy and efficiency incentives where cost-benefit analysis demonstrates a market barrier or public benefit that would otherwise remain unrealised.
Incentives shall be reviewed periodically and reduced or ended as technology matures or need disappears. Implementing instructions may not create tax or customs exemptions without statutory authority.
Article 92 — Bank financing
The Central Bank of Iraq, banks and financial institutions may, within their independence and governing laws, design green financing products and guarantees for renewables and efficiency. This Law creates no permanent Central Bank obligation to finance a particular programme or subsidise interest rates.
Article 93 — Blended finance and guarantees
Grants, concessional financing, risk guarantees and international funds may reduce capital costs for projects with public benefit, subject to disclosure of sovereign or contingent liabilities, competitive beneficiary selection and no duplicate subsidy for the same cost.
Article 94 — Budget appropriations
Subsidies and support programmes for households and public entities shall be traceably recorded in the federal or relevant budgets. This Law creates no off-treasury fund or automatic earmarked revenue unless a specific financial law provides otherwise.
Article 95 — Guarantees of origin
The Authority shall establish an electronic renewable-energy guarantee-of-origin register. Each guarantee shall certify a traceable energy unit under the regulations and be used only once. The register shall record source, location, period, technology and any material public support under disclosure rules.
Article 96 — Separating electricity and environmental attributes
Electricity and environmental attributes or guarantees of origin may be sold together or separately under contract. Consumers and companies may not claim renewable-energy consumption where the associated attribute has been transferred or cancelled for another party’s benefit.
Article 97 — Direct renewable-energy contracts
Eligible consumers may conclude direct or virtual renewable power purchase agreements under market rules. The Authority shall set network-use, settlement and guarantee requirements preventing cost transfers to non-participants.
Article 98 — Carbon attributes
A guarantee of origin is not itself a carbon credit or internationally transferred mitigation outcome. Emission-reduction units and international transfers require approval by the competent national authority and compliance with Paris Agreement and anti-double-counting rules.
Article 99 — Preventing undisclosed double support
Projects applying for incentives or tenders shall disclose grants, subsidised loans, exemptions and relevant environmental certificates. Granting authorities may adjust support to prevent windfall profits from unintended combinations of incentives.
Chapter Eleven — Oversight, grievances and violations
Article 100 — Records and reports
Licensees and public-incentive beneficiaries shall retain technical and financial records needed to verify generation, savings or support conditions for the prescribed period, protecting data and commercial secrets.
Article 101 — Inspection
Competent bodies may inspect facilities, equipment and records within their remit proportionately to risk. Homes or legally protected premises may be entered only under the law, with the occupant’s consent or a competent-authority order where required.
Article 102 — Corrective measures
For violations posing no imminent danger, the competent body shall issue a notice specifying the violation and correction period. It may shorten the deadline or immediately stop operation where serious danger threatens life, the grid or the environment.
Article 103 — Administrative penalties
Without prejudice to harsher penalties under another law, the Authority or competent body may, within its remit and after allowing a defence, issue warnings or corrective orders, suspend registrations or licences, temporarily exclude participants from incentive programmes or recover support obtained through inaccurate information.
Financial penalties for licensed activities shall be specified in the Electricity Market Regulation Law or regulations based on express statutory authority. No fine may be imposed administratively without legal authority.
Article 104 — Fraud and manipulation
Forgery of guarantees of origin, meter tampering for financial gain and false subsidy applications shall be referred to competent investigating authorities where punishable under existing laws. This Law does not duplicate offences already regulated by the Penal Code or other legislation.
Article 105 — Regulatory grievances
Interested parties may challenge Authority or competent-body decisions within thirty days of notification or knowledge under published procedures. A reasoned determination shall be issued within the period set by regulation. A grievance does not suspend urgent safety decisions unless the competent body or court orders otherwise.
Article 106 — Judicial review
Final administrative decisions under this Law may be challenged before competent courts under applicable laws. Contracts or instructions must not deprive citizens or investors of statutory appeal rights.
Chapter Twelve — Federal coordination, transitional and final provisions
Article 107 — Shared responsibilities
Implementation shall respect the constitutionally shared responsibility for regulating principal electrical energy sources and their distribution and for environmental policy. Federal, regional and local authorities shall coordinate, exchange data and avoid unjustified barriers to movement of electricity, equipment or services within Iraq.
Article 108 — Minimum federal standards
Safety, metering, traceability, consumer protection and national-grid access rules provide minimum standards where activities connect to the federal system or involve inter-governorate or interregional trade. Regions and governorates may adopt stricter environmental or building-efficiency requirements within their powers, consistently with federal law and the Constitution.
Article 109 — Mutual recognition
Competent bodies shall work towards mutual recognition within Iraq of professional licences, conformity certificates and approved meters and equipment where standards are equivalent, preventing repeated tests and procedures without technical justification.
Article 110 — Existing projects and contracts
Valid contracts, licences and approvals predating commencement shall remain effective until expiry and be aligned with safety, metering and environmental requirements within reasonable transitional periods. Material changes to compensation mechanisms shall not retrospectively affect established vested rights except under law.
Article 111 — Existing parliamentary bill
Upon enactment, this integrated framework shall, within its subject matter, replace conflicting prior renewable-energy provisions. Competent bodies shall review pending bills and instructions to prevent parallel, conflicting bodies or powers.
Article 112 — Authority transition
If the Federal Electricity Market Regulatory Authority has not begun operating at commencement, the Ministry shall temporarily perform necessary connection, registration and settlement regulatory functions under published rules. Files, data and responsibilities shall transfer immediately upon the Authority beginning work and within eighteen months of commencement, unless the Electricity Market Regulation Law specifies a shorter period.
Article 113 — Regulations and instructions
The Council of Ministers shall issue implementing regulations on competent bodies’ proposals. The Ministry, Authority and other bodies shall issue instructions and codes within their respective remits within twelve months of publication, in priority-based phases where appropriate.
Article 114 — Periodic review
Three years after commencement and every five years thereafter, the Ministry, coordinating with the Council and Authority, shall submit a public effectiveness assessment to the Council of Ministers and Council of Representatives, covering support costs, market performance, consumer protection, uptake, efficiency and grid impacts, with proposed amendments where needed.
Article 115 — Repeal of conflicting provisions
Conflicting provisions shall be repealed or amended to the extent necessary. Previous regulations and instructions remain temporarily effective insofar as compatible until replaced.
Article 116 — Commencement
This Law enters into force ninety days after publication in the Official Gazette. Provisions requiring regulations, metering infrastructure or settlement platforms shall apply under statutory and regulatory transitional periods no longer than technically necessary.
Statement of reasons
This Law is enacted to diversify Iraq’s energy mix and strengthen electricity security; provide a clear legal investment environment for renewables; enable citizens and businesses to generate distributed power and sell surplus without undermining fair grid-cost allocation; improve energy use in buildings, industry and appliances; regulate storage, flexibility and guarantees of origin; and clarify responsibilities to prevent duplicate regulation and protect consumers, the environment and public funds.
Explanatory memorandum
1. Why does Iraq need more than a renewable-energy promotion law?
Permitting power plants alone does not resolve questions arising as solar and wind shares grow: who connects projects, who pays for grid reinforcement, how rooftop exports are compensated, how poor equipment is excluded, how savings are measured, and how storage and demand management become system resources. These questions cross energy, investment, consumer, construction and environmental boundaries and therefore require an integrated framework.
2. Parliamentary status
The Council of Representatives held the first reading of the Renewable Energy Regulation Bill on 23 August 2026. Electricity and Energy Committee work showed continued discussion through 4 October 2026. This proposal offers an integrated formulation for expanding or restructuring the parliamentary text while preserving the existing legislative process and making no claim that the present text is in force.
3. Separating policy from regulation
The draft addresses a major institutional conflict: when one government body makes policy, licenses, sets tariffs and operates companies, entry and investment rules become less predictable. The Ministry therefore retains policy, the independent Authority proposed under the Electricity Market Regulation Law handles market regulation, and a coordinating council serves renewables and efficiency.
4. Net billing instead of open-ended support
One-for-one net metering may be simple initially but can become an implicit subsidy as uptake grows if small exporters receive full retail prices including network and service costs they do not provide. The draft therefore defaults to net billing while retaining net metering where beneficial for particular categories or areas. The aim is not to undervalue distributed energy but to price it transparently according to its true system value.
5. Efficiency is part of energy security
Every peak megawatt avoided through an efficient building, appliance or industrial process may reduce generation, network and fuel needs. The draft therefore links appliance standards, building efficiency, industrial audits and demand response to national planning rather than treating them as voluntary awareness campaigns.
6. Climate resilience
Iraqi conditions make climate-sensitive design operationally necessary. High temperatures and dust storms reduce panel output and increase cooling loads, while water scarcity constrains cleaning and thermal and hydroelectric generation. The Law therefore requires risk assessment, appropriate maintenance and minimal water use.
7. Fiscal fairness
The draft creates no independent off-treasury fund or open-ended exemptions. It permits incentives only within law and budget after cost-benefit analysis, with disclosure of double support and sovereign commitments, preventing clean-energy policy from becoming an invisible long-term fiscal obligation.
8. Federalism and shared responsibilities
Because the Constitution makes principal electricity sources, distribution and environmental policy shared responsibilities, the Law adopts minimum federal grid, safety, traceability and consumer-protection standards, allowing regional and governorate measures within their powers, including stricter requirements, with mutual recognition to prevent market fragmentation.
Legislative and institutional alignment
| Reference or body | Relationship to the proposed Law | Required action |
|---|---|---|
| Iraqi Constitution | Articles 33 and 114 establish environmental protection and shared electricity and environmental responsibilities. | Implement through coordination without exceeding constitutional powers. |
| Ministry of Electricity Law No. 53 of 2017 | Regulates the Ministry and existing sector. | Review duties and instructions conflicting with policy–regulation separation when the electricity market law takes effect. |
| Proposed Electricity Market Regulation Law POL-50 | Regulates the Authority, market, transmission, distribution, tariffs and metering. | Issue distributed-generation codes and rules under both laws without creating a second regulator. |
| Environmental legislation | Regulates impact assessment, pollution and hazardous materials. | Integrate impact assessment and end-of-life plans; energy licences do not replace environmental approval. |
| Building Law and national codes | Regulate building safety and performance. | Include efficiency in the code rather than a parallel code in this Law. |
| Standardisation and quality control | Regulate standards and conformity. | Adopt equipment standards, efficiency labels and testing laboratories. |
| Investment, procurement and contracts | Regulate permits and public contracting. | Use competition, transparency and risk-allocation rules for large projects. |
| Iraq’s Paris Agreement Accession Law No. 31 of 2020 | Establishes the international framework for climate commitments. | Align planning, carbon accounting and international transfers with the competent national authority. |
Transitional provisions and implementation requirements
| Time from commencement | Action | Lead body |
|---|---|---|
| 0–3 months | Appoint the National Council and institutional focal points; inventory existing renewable-energy regulations and instructions. | Council of Ministers/Ministry |
| 0–6 months | Issue simplified small-system registration, a connection application form and consumer disclosures. | Authority or Ministry during transition |
| 0–9 months | Launch an initial hosting-capacity map, project database and qualified-installer register. | Network operators/Centre/Authority |
| 0–12 months | Issue net-billing arrangements, aggregator and energy-community rules, and updated connection codes. | Authority |
| 0–12 months | Issue or update priority appliance standards and efficiency labels. | Standardisation and competent bodies |
| 12–18 months | Complete transfer of temporary regulatory functions to the Electricity Market Regulatory Authority once operational. | Ministry/Authority |
| Within 18 months | Approve the first integrated five-year national renewable-energy and efficiency plan. | Ministry/Council/Council of Ministers |
| Within 3 years | First legislative evaluation of performance, costs, uptake and consumer protection. | Ministry/Authority/Council of Representatives |
Financial and implementation impact
The Law requires no new independent renewable-energy authority, reducing establishment costs and avoiding duplicate staff and systems. Direct public costs concern upgrading digital systems and databases, resource and grid-capacity maps, metering, standardisation and training programmes, and regulatory and technical capacity.
Incentives or household and public-facility support programmes are not automatic statutory commitments. They require annual or multiyear budget appropriations or disclosed financing. Each programme must first identify a baseline, beneficiary numbers, support value, expected fuel and electricity savings and distributional impact, followed by published evaluation of results.
At system level, renewables and efficiency can reduce fuel consumption, exposure to fluctuating gas supplies and outage costs. Savings depend on actual fuel prices, grid absorption capacity and balancing, storage and financing costs. The Law therefore sets no unverifiable fixed financial estimate but requires appraisal before commitment.
Brief international comparison
| Practice | Relevance to Iraq |
|---|---|
| Prosumer principle and simplified registration | Lower transaction costs for small systems and avoid imposing large-plant requirements on households or shops. |
| Net billing or export-value pricing | Provide sustainable compensation as the market grows and reduce transfers of grid costs to non-participants. |
| Guarantees of origin | Separate proof of renewable electricity origin from physical electricity and support voluntary corporate contracts. |
| Minimum performance standards and efficiency labels | Prevent entry of appliances cheap to purchase but costly over their lifetime because of consumption. |
| Audits and energy-management systems for large facilities | Move efficiency from general campaigns to measurable institutional management. |
| Energy communities | Enable tenants, complexes and villages to share assets rather than confining benefits to owners of individual rooftops. |
| Competitive auctions for large projects | Use competition for price discovery and reduce reliance on long-term fixed feed-in tariffs. |
This comparison draws on European Union renewable-energy and energy-efficiency directives and International Renewable Energy Agency literature, adapted to Iraq’s grid, subsidies, institutional responsibilities and climate.
Sources and references
- Iraqi Council of Representatives — Iraqi Constitution.
- Ministry of Justice — Iraqi Gazette, issue 4443: Ministry of Electricity Law No. 53 of 2017.
- Ministry of Justice — Iraqi Gazette, issue 4618: Law No. 31 of 2020 on Iraq’s accession to the Paris Agreement.
- Iraqi Council of Representatives — decisions and recommendations of the 23 August 2026 sitting: first reading of the Renewable Energy Regulation Bill.
- Iraqi Council of Representatives — Electricity and Energy Committee discusses the Renewable Energy Bill, 4 October 2026.
- Iraqi Ministry of Environment — climate change and nationally determined contribution documents.
- Ministry of Environment — updated nationally determined contributions document 2025.
- IRENA — Energy Transition Assessment: Iraq, 2025.
- IEA — National Climate Resilience Assessment for Iraq, 2025.
- UNDP Iraq — Catalysing the Use of Solar Photovoltaic Energy.
- UNDP Iraq — Energy Transition: From Policies to Actions in the Power Sector of Iraq, 2025.
- Central Bank of Iraq — follow-up on the renewable-energy financing initiative, 24 June 2026.
- European Union — Renewable Energy Directive (EU) 2023/2413.
- European Union — Energy Efficiency Directive (EU) 2023/1791.
Online sources accessed: 5 October 2026.