Iraqi Economy and Renewable Energy Projects Between Economic Necessity and Investment Challenges

Purpose: Given Iraq's current excessive fossil fuel output, this article seeks to investigate the country's potential for future renewable energy sources. The report also endeavors to foresee Iraq's future position in clean energy production in Iraq and throughout the globe and the rate at which the global energy market will shift towards renewable energy sources.   Theoretical framework: Iraq's reliance on oil earnings and the country's overburdened public sector poses serious economic issues. There is a domination of state-owned firms, stringent laws, a need for more access to finance, a shortage of competent labor, and poor infrastructure that limits the expansion of numerous industries. Growth in recent years has not led to decreased poverty since the economy has changed greatly since 2014.   Design/Methodology/Approach: The study included both retrospective and prospective approaches. The most pressing problems in implementing and making use of renewable energy sources were described and analyzed descriptively. Future outcomes for the Iraqi economy were envisioned using a prospective approach in the form of development scenarios.   Findings: A significant source of international capital flows and a key source of funding for economic growth, foreign direct investment (FDI) has mostly focused on the oil industry and certain tourism projects. As a result of the country's outdated energy grid, investors are interested in something other than investing in Iraq's electrical industry.   Research, practical & social implications: We describe the current issues confronting Iraqi economic development, including the need for more diversity in the economy, structural imbalances between the main sectors, and the near-total dependence on crude oil export revenues, resulting in a decline in industrial production.   Originality/Value: We describe the reality of the Iraqi economy, analyze the structure of Iraq's energy sector based on conventional energy, and then find out about the progress made in renewable energy and existing and future projects under fossil fuels