Scatec scraps plan for solar projects in Iraq

Norway-based renewables developer Scatec ASA (OSL:SSO) has discarded plans to build and operate two solar power plants with a combined capacity of 525 MW in southern Iraq.

“As part of our sharpened strategy, we have decided to focus our efforts on carefully selected markets. Therefore, we have decided not to proceed with the projects in Iraq,” Scatec told RenewablesNow in a response to an inquiry.

Last week, Aliqtisad News reported, citing Iraqi senior officials, that Scatec had withdrawn from negotiations with the Ministry of Electricity on the development of the two schemes, dealing a serious blow to the renewable energy ambitions of the Iraqi government.

According to an official at the Ministry of Oil who is familiar with the project, the main reasons for the withdrawal are the slow procedures by the Ministry of Electricity and the Arab country's unclear legislation on solar energy.

"Solar energy projects are somewhat new to the government, so it will take time to process the legislation," the official was quoted by Aliqtisad News as saying.

Choose your newsletter by Renewables Now. Join for free!