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Kurdistan Region Electricity Reform and the "Runaki" Project
By Mohammed Hussein, for the Institute of Regional and International Studies (IRIS) at the American University of Iraq, Sulaimani (AUIS). The opinions expressed are those of the author(s), and do not necessarily reflect the views of Iraq Business News.
Kurdistan Region Electricity Reform and the "Runaki" Project
The Kurdistan Region of Iraq (KRI) has struggled with electricity shortages for decades. To address this challenge, the Kurdistan Regional Government (KRG) established the Runaki Project, which means "light" in Kurdish. Launched in 2024, it aims to manage the region's power sector systematically and ensure 24-hour electricity for households and businesses by the end of 2026.
If successful, it could ultimately end the widespread reliance on highly polluting diesel generators and replace them with supply from natural gas-power plants. However, there are serious societal concerns around the costs for consumers associated with the new system, which presents a major challenge to the project's long-term success.
This report analyzes the Runaki Project and positions it as a potential structural response to the KRG's endemic electricity shortages. It examines the underlying incentives and institutional constraints that might shape the project's design and implementation. It further identifies the winners and losers of Runaki and elaborates on the fiscal, political, and distributional challenges that will influence its outcomes and sustainability.
The full report can be read here.
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