The Green Observatory of Iraq recently criticized the Central Bank for hindering the use of solar panels in homes to generate electricity. The Observatory contends that the loan conditions set by the Central Bank are impeding the success of the initiative. They have called for specific amendments to be made to certain paragraphs of the initiative to ensure its success.
In a press statement today, the Observatory reported that over a year has passed since the Central Bank launched their initiative to support renewable energy. The objective of the initiative was to promote sustainable solutions and reduce the impact of climate change. However, the Observatory noted that the initiative has failed due to specific technical requirements, such as solar panels and batteries.
He added, “The percentage of banks financing these projects has made many of them refuse to grant loans to citizens,” calling for “amending the paragraphs of the initiative so that the middle-income segment can borrow.”
The observatory has suggested the development of a solar energy equipment option with lower specifications, based on what is available in the local market, in addition to the current initiative. They emphasized that the borrowing mechanism should be amended by granting solar energy companies permission to import equipment or by providing appropriate interest rates to banks, while ensuring that the borrower is not harmed. In July 2021, the Central Bank of Iraq announced its commitment to promoting the use of renewable energy sources for energy production, and to collaborate with the Supreme Lending Committee to equip a percentage of residential investment complexes with solar panels, which will benefit from this initiative.
In March 2022, the Central Bank of Iraq implemented regulations for funding renewable energy-based electricity generation systems. The bank stated that this move aligns with the government’s commitment to the Paris Climate Conference’s resolutions. The Central Bank initiated this effort to transition towards clean energy within a committee headed by the Deputy Governor and comprising members from the Ministries of Environment and Electricity, the Central Organization for Standardization, private sector representatives, experts, and investors. The committee focuses on qualitative control measures to ensure compliance with standards.
