VZCZCXRO3532
RR RUEHBC RUEHDA RUEHDE RUEHDH RUEHIHL RUEHKUK
DE RUEHGB #2318 2401400
ZNR UUUUU ZZH
R 281400Z AUG 09
FM AMEMBASSY BAGHDAD
TO RUEHC/SECSTATE WASHDC 4486
INFO RUCNRAQ/IRAQ COLLECTIVE

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