Observatory holds CBI responsible for undermining solar panel project
Shafaq News / The Iraqi "Green"
Observatory placed responsibility on the Central Bank for undermining the
project of using solar panels in homes to generate electricity, citing the
stringent conditions of its lending initiative. The observatory called for
certain clauses of the initiative to be amended for its success.
In a press statement today, the observatory
stated, "more than a year has passed since the launch of the Central
Bank's initiative to support renewable energy, aimed at supporting sustainable
solutions and mitigating the effects of climate change." It noted that
"the initiative declared its failure since its launch due to the technical
specifications it imposed, such as solar panels and batteries."
The statement further highlighted that "the
percentage of consumers who could benefit from these projects was reduced
because many of them were denied loans." It called for "amending the
clauses of the initiative to enable middle-income citizens to borrow."
The observatory proposed "setting lower
specifications for solar energy equipment in line with what is available in the
local market, in addition to the current ones in the initiative."
It emphasized, "the modification of the
lending mechanism should be by granting solar energy companies allowances for
importing or providing favorable interest rates to consumers, with the damage,
if any, being borne by the borrower."
In July 2021, the Central Bank of Iraq decided
to promote the adoption of renewable energy production tools and work with the High
Committee for Lending to ensure the provision of a percentage of the
electricity generated from renewable energy sources (solar panels) to
residential complexes benefiting from the initiative.
In early March 2022, the Central Bank issued
guidelines for financing electricity generation systems from renewable energy
The Central Bank stated at the time that this
initiative, in line with the country's commitment to the Paris Climate
Agreement, aimed to transition to clean energy within this framework. A
committee was formed, headed by the Deputy Governor and including representatives
from the Ministry of Environment, Ministry of Electricity, the Central
Organization for Standardization and Quality Control, as well as experts and
investors from the private sector.