Baghdad: The "Eco Iraq" Economic Observatory confirmed today, Saturday, that the cost of electricity production in Iraq has reached 5.6 trillion dinars, while the contribution of renewable energy does not exceed about 2% of the current total production.

According to National Iraqi News Agency, Iraq is among the countries with the cheapest electricity prices, with tariffs ranging between 1.5 and 4.6 cents per dollar per kilowatt-hour. This pricing places Iraq seventh globally and second in the Arab world for low electricity prices.

The cost of electricity production up to September 2025 reached 5 trillion and 6 billion dinars. The current peak production has reached 28,000 megawatts, while fully meeting demand requires about 50,000 megawatts.

Electricity production sources based on fossil fuels constitute 98% of total production: 36% from investment plants, 35% from gas-fired plants, 19% from steam plants, 6% from electricity supplied by the Kurdistan Region and imported from Iran, Jordan, and Turkey, and 2% from diesel plants. The contribution of renewable energy, including hydroelectric and solar power, does not exceed 2% of total production.

Achieving complete self-sufficiency in electricity requires a comprehensive package of measures and decisions. These include reducing wasteful consumption, addressing illegal connections to the grid, and modernizing electricity transmission and distribution equipment for consumers. The observatory also noted the weakness and negligence of the authorities responsible for the electricity sector, which leads to continued power outages in the country.