Iraq has prequalified eight companies to execute solar power projects that will supply electricity to houses in the capital Baghdad and other areas.

Iraq’s Electricity Minister Ziad Fadil said the pre-qualification is part of phase 1 of a Central Bank initiative to expand the use of solar power by Iraqi families.

He said the initiative includes providing soft-term loans to citizens to install solar power systems, adding this would help tackle a persistent power supply crisis in Iraq.

Iraq has been locked in a drive to rehabilitate its war-damaged power sector and expand the use of renewable energy sources.

It has awarded solar power projects to a number of foreign companies over the past months with a combined generation capacity of 7.5 GW. On Monday, the Basra Investment Commission signed an agreement with France’s TotalEnergies to construct a 1,000-megawatts (MW) solar power plant at a cost of $820 million. Additionally, two solar plants with a combined capacity of 500 MW are set to be established in Kirkuk province.

Last month, Shafaq News reported that the Central Bank's one trillion Iraqi dinars ($760 million) distributed solar projects initiative managed to disburse only IQD 250 million to 10 borrowers to date.