By 2030, achieve 12 gigawatts of installed capacity – this is the renewable energy installation target set by Iraq. As a major oil producing country, Iraq has great potential for developing renewable energy and has begun to encourage the rise of new energy represented by photovoltaics. It is hoped that by 2030, the proportion of renewable energy electricity will reach 33%.
After the clear transition to new energy, Iraq began to attract investment and hoped to work with Chinese companies to jointly explore the local photovoltaic market. The Middle East was originally a market that domestic photovoltaic companies focused on, and related companies have made many layouts in the Middle East and have also been paying attention to the Iraqi market. With Iraq’s clear initiation of the green energy development process, China hopes to bring advanced technology to Iraq to help solve its power supply problems and enable local residents to use electricity well.
The urgent need for energy transformation and the urgent need to seek international cooperation.
Iraq has a long-term shortage of electricity supply, with nearly one-third of the electricity supply coming from imports and relying on imported natural gas for power generation. Currently, multiple infrastructure projects in Iraq have a high demand for electricity. In order to ensure the power supply required for national construction, the Iraqi government is turning its attention to photovoltaics.
Iraq is located in the Middle East and has enormous potential for the development of solar energy resources. According to relevant data, the daily sunshine time in the area can reach 8-10 hours, and the average annual sunshine time can often reach 3000-3650 hours, which is suitable for large-scale development of photovoltaics.
At present, Iraq has three clear market development directions for photovoltaics. One is a centralized ground power station, which is led by the Iraqi government to carry out bidding work; The second is industrial and commercial photovoltaics. The overall stability of the Iraqi power grid is poor, and photovoltaics can meet the daily operation of local small-scale production sites, alleviating the power supply problems caused by weak power grids; The third is household photovoltaic, which refers to the electricity used by general residents. Iraq has many areas without electricity, and installing photovoltaic can improve the daily life of non electricity residents.
In the above context, in order to promote energy transformation, Iraq has approved a fund with a total scale of 680 million US dollars, specifically for promoting the development of clean energy such as photovoltaics. In October of this year, the head of the Iraqi Minister of Environment planned to invest 100 billion US dollars in green economy by 2035, emphasizing the importance of developing green technologies in the region and clarifying the hope to promote the establishment of a green economy model through international cooperation.
In September of this year, during his visit to China, the General Manager of Missan Oil Company in Iraq stated in a media interview that Chinese enterprises have widely participated in the construction of oil, gas, electricity and other fields in Iraq, making huge contributions to Iraq’s economic development and people’s livelihood improvement. In the future, he hopes that more Chinese enterprises will participate in Iraq’s energy projects.
The power grid is fragile and requires higher requirements for new energy technologies.
With the emergence of demand, Iraq has become an emerging market for photovoltaics, with enormous potential for photovoltaic development. However, it cannot be ignored that Iraq’s underdeveloped power grid and incomplete infrastructure construction pose higher requirements for related products and technologies.
It is understood that the coverage and capacity of Iraq’s power grid are relatively low, making it a typical weak power grid, which also means that the fault tolerance of its power grid is relatively low. Whether starting as a backup power source in the event of a power outage or directly intervening in the power grid, photovoltaic projects may affect the overall stability of the power grid and add challenges to the already fragile power grid.
This reality directly leads to higher requirements for core equipment such as inverters in local new energy power stations. According to different needs, Sunshine Power needs to be tailored to local conditions and provide products and solutions that are suitable for the local situation. For example, if a photovoltaic power station wants to connect to a weak electricity grid, it needs to consider how to form strong support for the grid, and how to deeply combine photovoltaic and energy storage to improve the stability and consumption ratio of new energy. If it is an off grid type or used as a backup power source, it is necessary to ensure that photovoltaic and energy storage are well coordinated to maximize their effectiveness.
Chinese companies have conducted in-depth market insights and rich development experience in the Middle East market. I have participated in the construction of a photovoltaic project for the Qatar World Cup, with a scale of 800 megawatts. At that time, the large-scale integration of green power was also a test for Qatar’s power grid, but with the support of advanced Chinese technology, the project operated normally, which also strengthened the confidence of Chinese enterprises in developing the Iraqi market.
For Chinese companies, the potential and charm of the Iraqi market lies not only in demand and scale, but also in their desire for advanced photovoltaic technology. It is precisely because of the high technological requirements that Chinese companies stand out in the Iraqi market.
Practice localized services and take root in the local market.
Since its establishment in 1997, Sunshine Power has always focused on the field of new energy generation, and is a leader in global photovoltaic enterprises in terms of product quality and scale, as well as market coverage. As of now, in addition to the traditional advantageous business of photovoltaic inverters, the business of Sunshine Power has expanded to various aspects such as energy storage systems, renewable energy hydrogen production systems, smart operation and maintenance, charging equipment, new energy investment and development, new energy vehicle electronic control and power systems.
Localization issues are situations that every enterprise may encounter in the process of exploring new markets. To overcome this challenge, one needs to put in effort. Firstly, it is necessary to understand the local business environment and social culture, do homework in advance, and avoid risk factors.
Secondly, there should be a strong sales and service network that can respond promptly to customer needs. For example, as of now, Chinese photovoltaic companies have business footprints in more than 150 countries and regions including China, the United States, the United Kingdom, Germany, and Japan, and have promised to respond to overseas customer needs within 48 hours. Sunshine Power has always adhered to a global development strategy, with branches and sales networks in the Middle East and North Africa, providing localized services and support, which helps Sunshine Power better cooperate with local customers and expand into the Iraqi market. The process of exploring new markets is the process of rooting, and the deeper the roots are rooted, the more lush the branches and leaves become.
In the first nine months of this year, Sunshine Power achieved a revenue of 46.415 billion yuan, exceeding the annual revenue of 40.257 billion yuan in 2022, reaching a new high. According to data from consulting research firm S&P Global Commodity Insight, in 2022, the shipment volume of solar power photovoltaic inverters reached 77 gigawatts, ranking first globally. In addition, its energy storage system shipped 7.7 gigawatt hours in 2022. As of June 2023, Sunshine Power has achieved a cumulative installed capacity of over 405 gigawatts of inverter equipment in the global market.
With the Iraqi government initiating bidding for renewable energy projects, the development process of the photovoltaic industry in the country will accelerate, and Chinese companies represented by Sunlight Power will also usher in greater market space. Photovoltaics will bring multiple benefits to the Iraqi market, including economic and social benefits, with a bright future. At the same time, it is worth mentioning that this year marks the tenth anniversary of the joint construction of the “the Belt and Road” initiative and the 65th anniversary of the establishment of diplomatic relations between China and Iraq. China Iraq energy cooperation is an important part of the “the Belt and Road” initiative. Chinese photovoltaic enterprises hope to continue to promote the development of Iraq’s renewable energy industry and make contributions to local green economic development and energy transformation.
As a Chinese photovoltaic enterprise, MULTIFIT Company has always been committed to playing an active role in the field of sustainable energy. As a leader in the renewable energy industry, we will continue to maintain high-intensity research and development investment, continuously improve the efficiency of solar photovoltaic power generation, and introduce more valuable technologies and products to Iraq. This will further accelerate the pace of Iraq’s energy transformation, which is of great significance for the green, healthy, and sustainable development of the Iraqi economy.
Post time: Dec-21-2023