Alternative Energies to be integrated into Iraq's Energy

UNCLAS BAGHDAD 002318

SIPDIS

DEPT FOR NEA/I, OES/STAS

E.O. 12958: N/A
TAGS: ECON ENRG OSCI SENV TNGD TPHY TRGY TSPL BEXP BTIO
EAID, EIND
SUBJECT: Alternative Energies to be integrated into Iraq's Energy
Plan, Funding the Issue

1. (SBU) SUMMARY: Representatives from eleven Iraqi ministries
discussed the potential for alternative energy (solar, wind,
biomass, hydro) in Iraq at the Iraqi Renewable Energy Steering

Committee (IRESC) meeting on August 19. IRESC keynote speaker Dr.
Al-Qaraghuli from the U.S. Department of Energy's National Renewable
Energy Laboratory (NREL) outlined an NREL Framework Plan to build a
renewable energy and energy efficiency infrastructure that would
increase the use of renewable energy sources and lead to more energy
efficient and conservation measures in Iraq. Meeting attendees
called for increased alternative energy research and development,
education programs on renewables, support for specific projects such
as cathodic protection and water heating, the establishment of
standards and codes, technology transfer opportunities, and the need
for solar energy technician training programs and educational
equipment. End summary.


2. (SBU) Iraq first considered alternative energy research and
development during the 1980's, when the GOI created a Solar Research
Center (SERC) in collaboration with the U.S. Solar Energy Research
Institute (SERI) - the precursor to the NREL. Iraqi interest in
alternative energy was rekindled in April 2009 when Prime Minister
Maliki chaired a Council of Ministers meeting to develop an action
plan for renewable energy. The resultant plan covered several
specific actions, including defining solar technology applications,
investing in energy efficiency and research and development,
education programs, and developing alternative energy business and
investment opportunities.



3. (SBU) The August 19 IRESC attendees included Minister of
Science and Technology Dr. Raed Fahmy Jahid, Minister of Oil Dr.
Hussain Al-Sharistani, Minister of Environment Dr. Narmin Othman,
Minister of Construction and Housing Dr. Dayan Desei, National
Investment Commission chair Dr. Sami Al-Araji, INIC, a Deputy
Minister of Electricity, and representatives from the Ministries of
Interior, Higher Education, Water Resources, Industry and Materials,
and Justice. Ministers were given ten minutes to present their
views on alternative energy. The GOI senior officials agreed that
"renewable energy and fossil energy are not in competition" with one
another. Instead, renewable energy sources should be integrated to
extend the life of fossil fuels and allow Iraq to export larger
quantities of fossil fuels. In one example, solar energy could be
an inexpensive alternative to the countless, small diesel-powered
generators that many Iraqis use to generate electricity. The
officials pointed out that solar energy is already in wide use along
the border supporting communication and monitoring equipment. IRESC
participants also stated that

-- Iraq's renewable energy sector was an important area for
potential foreign investment and educational training
opportunities;

-- technology transfer and partnerships with non-Iraqi universities
were possible areas of engagement;

-- more emphasis was needed on wind and solar educational equipment,
such as panels, test gear, and software;

-- codes and standards for sustainable energy architecture,
especially in housing, was important for increasing energy
efficiency and that a ten billion dinar program at universities and
other organizations exists to study and develop more efficient
building designs; and

-- health and global warming were primary reasons for encouraging
alternative energy use.

Solar Energy


4. (SBU) The IRESC concluded that solar energy may not be a
Q4. (SBU) The IRESC concluded that solar energy may not be a
competitive alternative to fossil fuels until government subsidizes
the construction of solar energy units. One Ministry of Science and
Technology official suggested that the GOI could sponsor a loan
program for individuals buying alternative energy components (e.g.,
solar panels for hot water heating). Under such a program,
purchasers would pay 20 percent, while the government funded the
rest with a loan repayable over 5-10 years. A similar government
supported loan program is already being used in the agricultural
industry.


5. (SBU) COMMENT: The GOI is increasingly interested in exploring
the use of alternative energy, but government action may be limited
due to funding constraints. Loan programs in general are uncommon
in Iraq as are cooperatives that could provide a vehicle for capital
cost accumulation. One possibility for private industry funding
might be through requiring companies that win bids to develop Iraqi
oil fields to invest a certain amount of money in Iraq's alternative
energy and/or science sector.

Hill