Iraq's power system has long been dominated by natural gas and oil-fired generation, and supply reliability is constrained during summer peaks by fuel availability and emissions limits. The Ministry of Electricity's low-carbon energy roadmap targets raising the share of clean energy to approximately 25% of total generation by 2030. The IRENA Energy Transition Assessment for Iraq, published in July 2025, records Iraq's plan to install 12,000 MW of solar PV by 2030, of which 7,500 MW has already been awarded.
Beyond utility-scale plants, Iraq has also promoted distributed solar. In 2022 the Central Bank of Iraq announced approximately USD 750 million in subsidised loans to encourage individuals and private companies to install smaller-scale solar systems. The IEA National Climate Resilience Assessment for Iraq identifies prioritising distributed generation, together with islanding capability in parts of the grid, as a key measure for strengthening the climate resilience of Iraq's electricity system.
Dairy centers are food-processing facilities whose refrigeration, pasteurisation and milking equipment depend heavily on continuous power; they have largely relied on diesel generators, with high fuel costs and emissions. This project supplies hybrid solar PV systems to dairy centers, reducing diesel consumption through the complementary operation of PV generation, energy storage and the existing diesel generation. As the specialised agency of the United Nations system responsible for food and agriculture, FAO promotes such improvements to the energy supply of agri-food value chain facilities under its related projects.
| Item | Content |
|---|---|
| Scope of Supply | Procurement, delivery, installation, testing and commissioning of hybrid solar PV systems for dairy centers across Iraq |
| Contract Nature | Works contract in the energy and power sector, focused on renewable energy |
| System Configuration | Hybrid solar PV systems combining PV generation and energy storage, replacing or supplementing existing diesel generation to supply dairy centers with continuous power |
| Delivery and Installation Sites | Dairy centers within Iraq, at the sites listed in the bidding documents |
| Technical Responsiveness | The offered solution must respond to the technical specifications for PV modules, storage equipment and the power supply system set out in the bidding documents, and must set out the installation, testing and commissioning approach |
| Site Conditions | The solution must meet the requirements of dairy production facilities in terms of supply continuity, load profile and operating environment, and installation shall not disrupt existing production |
| Obtaining the Documents | Bidders shall obtain the FAO tender documents through the UNGM portal following the instructions attached to the UNGM notice |
| Submission Method | Offers must be submitted through the UNGM portal; offers not submitted through the UNGM portal will be invalidated |
| Not Disclosed in the Notice | The notice does not disclose the installed capacity, module quantities or total number of sites; those parameters are set out in the bidding documents |
| Item | Content |
|---|---|
| Contract Form | Supply-and-installation contracts of this type commonly use unit rates, settled against sites actually completed and accepted |
| Advance Payment | United Nations agency works and supply contracts commonly carry no advance payment, or pay pro rata only against an equivalent advance payment guarantee |
| Performance Security | The successful bidder is commonly required to provide performance security, usually at around 10% of the contract price, valid throughout the warranty period |
| Warranty Period | Warranties for PV modules, storage equipment and backup power systems are commonly five years or longer, counted from successful commissioning |
| Payment Arrangement | Payments are commonly made in stages against delivery, installation, commissioning and acceptance milestones, with the final payment released after the warranty period |
| Price Basis | Prices are commonly quoted delivered to the designated sites, with transport, installation and commissioning costs included in the contract price |
| Insurance and Taxes | Contractors are commonly required to insure transport and installation works and to bear the applicable taxes under the law of the country of implementation |
| Governing Rules | The contract is subject to FAO procurement rules and the general conditions of contract of the United Nations |