Case Study: Large-Scale Solar Roll-Out in Iraq — Lessons in Execution

Overview

Iraq’s first utility-scale solar projects are shaping the country’s renewable future — but they also expose the persistent challenges of execution on the ground.

In 2025, a 300 MW solar plant in the Karbala desert highlighted the same issues many foreign EPC firms face: regulatory complexity, local capacity gaps, and last-mile delivery friction.

Background

With demand for electricity growing faster than supply, Iraq has sought to diversify away from gas-fired generation by inviting foreign developers to build large-scale solar capacity.

Under one such contract, a European EPC firm was tasked with design, procurement, and on-site commissioning of a solar farm in southern Iraq.

Despite the company’s technical depth and prior MENA experience, local execution became the critical bottleneck.

Key Challenges

1️⃣ Regulatory & Permitting Delays

Multiple ministries required overlapping permits — Ministry of Electricity, Ministry of Environment, and regional governorates — each with separate documentation cycles.

Grid connection approval lagged by months, creating a ripple effect across the delivery schedule.

2️⃣ Supply Chain & Local Capacity Gaps

Imported panels and inverters were held at customs for extended inspection. Local subcontractors lacked solar-specific expertise, leading to rework and safety non-compliance.

3️⃣ Financing & Contract Risk

Currency fluctuations and slow banking channels strained cash-flow. Delayed ministry payments left EPCs carrying cost risk beyond forecasted tolerances.

4️⃣ Last-Mile Delivery Issues

Once materials cleared customs, workforce mobilisation stalled. Coordinating utilities, contractors, and site security became a full-time task, handled reactively rather than systematically.

Outcome

A local–foreign coordination team was introduced mid-project to realign delivery.

They:

• Re-sequenced import documentation and customs schedules, cutting clearance time by 30–40 percent.

• Re-structured subcontractor terms with performance-linked milestones.

• Established a field coordination office to handle ministry, customs, and inspection correspondence directly.

These measures brought the project back within achievable timelines and stabilised delivery flow.

Lessons Learned

1. Treat setup as a separate project. Entity registration, site licensing, and mobilisation each require dedicated resources and timelines.

2. Build partnerships early. Vet and embed capable Iraqi subcontractors and logistics providers before mobilisation.

3. Model for friction. Add contingency for customs, documentation, and approval lag — these are structural, not incidental, delays.

4. Localise oversight. Maintain a permanent coordination presence, not a fly-in team rotation.

Conclusion

Iraq’s solar rollout is a milestone for regional energy diversification — but execution, not ambition, determines success.

For foreign developers, the differentiator isn’t capital or technology; it’s the ability to align global standards with local realities through trusted coordination and on-the-ground intelligence.