Iraq continues to offer one of the world’s lowest electricity prices, ranking seventh globally in affordability. According to recent economic data, Iraq has also secured second place among Arab countries for cheap electricity.
Out of 142 countries, Iraq maintained its residential electricity rate at $0.015 per kilowatt-hour. Additionally, the commercial rate stayed at $0.046. These numbers remain unchanged from the previous year, highlighting Iraq’s ongoing efforts to sustain low power costs.
Iran led the global list with the cheapest electricity rate at $0.004 per kilowatt-hour. Following Iran, Ethiopia ranked second with $0.005, while Sudan and Cuba shared the third position at $0.006. Angola and Kyrgyzstan completed the top six, with rates of $0.013 and $0.014 respectively.
Meanwhile, electricity prices soared in other parts of the world. Bermuda ranked first for the most expensive electricity, charging $0.487 per kilowatt-hour. Ireland came second at $0.449, followed by other high-cost countries.
Among Arab nations, Sudan stood at the top for affordability. Iraq followed closely, then Syria with $0.016 per kilowatt-hour. Egypt offered $0.022, Oman reached $0.026, and Qatar and Algeria posted rates of $0.032 and $0.041 respectively.
Energy experts link Iraq’s low electricity rates to extensive government subsidies and energy sector support. These efforts allow Iraq to cushion residential and commercial consumers from global price shocks.
Electricity affordability in Iraq also plays a major role in boosting industrial production and encouraging economic activities. Small businesses and households benefit significantly from these reduced energy bills. In turn, this helps drive broader financial stability and consumer spending.
Iraq’s position on the list also reflects consistent policy decisions aimed at maintaining stable energy prices. Even as oil and gas markets fluctuate, Iraq manages to insulate its domestic consumers from those pressures.
However, some analysts warn that sustaining low electricity prices requires long-term investment in energy infrastructure. Iraq must expand its grid capacity and modernize outdated systems to meet growing demand.
Despite these challenges, Iraq electricity prices remain an economic advantage for the country. The current affordability supports both public welfare and private-sector development.