By 2030, achieve 12 gigawatts of installedcapacity - this is the renewable energy installation target set by Iraq. As amajor oil producing country, Iraq has great potential for developing renewableenergy and has begun to encourage the rise of new energy represented byphotovoltaics. It is hoped that by 2030, the proportion of renewable energyelectricity will reach 33%.

After the clear transition to new energy,Iraq began to attract investment and hoped to work with Chinese companies tojointly explore the local photovoltaic market. The Middle East was originally amarket that domestic photovoltaic companies focused on, and related companieshave made many layouts in the Middle East and have also been paying attentionto the Iraqi market. With Iraq's clear initiation of the green energydevelopment process, China hopes to bring advanced technology to Iraq to helpsolve its power supply problems and enable local residents to use electricitywell.

The urgent need for energy transformationand the urgent need to seek international cooperation.

Iraq has a long-term shortage ofelectricity supply, with nearly one-third of the electricity supply coming fromimports and relying on imported natural gas for power generation. Currently,multiple infrastructure projects in Iraq have a high demand for electricity. Inorder to ensure the power supply required for national construction, the Iraqigovernment is turning its attention to photovoltaics.

Iraq is located in the Middle East and hasenormous potential for the development of solar energy resources. According torelevant data, the daily sunshine time in the area can reach 8-10 hours, andthe average annual sunshine time can often reach 3000-3650 hours, which issuitable for large-scale development of photovoltaics.

At present, Iraq has three clear marketdevelopment directions for photovoltaics. One is a centralized ground powerstation, which is led by the Iraqi government to carry out bidding work; Thesecond is industrial and commercial photovoltaics. The overall stability of theIraqi power grid is poor, and photovoltaics can meet the daily operation oflocal small-scale production sites, alleviating the power supply problemscaused by weak power grids; The third is household photovoltaic, which refersto the electricity used by general residents. Iraq has many areas withoutelectricity, and installing photovoltaic can improve the daily life of nonelectricity residents.

In the above context, in order to promoteenergy transformation, Iraq has approved a fund with a total scale of 680million US dollars, specifically for promoting the development of clean energysuch as photovoltaics. In October of this year, the head of the Iraqi Ministerof Environment planned to invest 100 billion US dollars in green economy by 2035,emphasizing the importance of developing green technologies in the region andclarifying the hope to promote the establishment of a green economy modelthrough international cooperation.

In September of this year, during his visitto China, the General Manager of Missan Oil Company in Iraq stated in a mediainterview that Chinese enterprises have widely participated in the constructionof oil, gas, electricity and other fields in Iraq, making huge contributions toIraq's economic development and people's livelihood improvement. In the future,he hopes that more Chinese enterprises will participate in Iraq's energyprojects.

The power grid is fragile and requireshigher requirements for new energy technologies.

With the emergence of demand, Iraq hasbecome an emerging market for photovoltaics, with enormous potential forphotovoltaic development. However, it cannot be ignored that Iraq'sunderdeveloped power grid and incomplete infrastructure construction pose higherrequirements for related products and technologies.

It is understood that the coverage andcapacity of Iraq's power grid are relatively low, making it a typical weakpower grid, which also means that the fault tolerance of its power grid isrelatively low. Whether starting as a backup power source in the event of apower outage or directly intervening in the power grid, photovoltaic projectsmay affect the overall stability of the power grid and add challenges to thealready fragile power grid.

This reality directly leads to higherrequirements for core equipment such as inverters in local new energy powerstations. According to different needs, Sunshine Power needs to be tailored tolocal conditions and provide products and solutions that are suitable for thelocal situation. For example, if a photovoltaic power station wants to connectto a weak electricity grid, it needs to consider how to form strong support forthe grid, and how to deeply combine photovoltaic and energy storage to improvethe stability and consumption ratio of new energy. If it is an off grid type orused as a backup power source, it is necessary to ensure that photovoltaic andenergy storage are well coordinated to maximize their effectiveness.

Chinese companies have conducted in-depthmarket insights and rich development experience in the Middle East market. Ihave participated in the construction of a photovoltaic project for the QatarWorld Cup, with a scale of 800 megawatts. At that time, the large-scaleintegration of green power was also a test for Qatar's power grid, but with thesupport of advanced Chinese technology, the project operated normally, whichalso strengthened the confidence of Chinese enterprises in developing the Iraqimarket.

For Chinese companies, the potential andcharm of the Iraqi market lies not only in demand and scale, but also in theirdesire for advanced photovoltaic technology. It is precisely because of thehigh technological requirements that Chinese companies stand out in the Iraqimarket.

Practice localized services and take rootin the local market.

Since its establishment in 1997, SunshinePower has always focused on the field of new energy generation, and is a leaderin global photovoltaic enterprises in terms of product quality and scale, as wellas market coverage. As of now, in addition to the traditional advantageousbusiness of photovoltaic inverters, the business of Sunshine Power has expandedto various aspects such as energy storage systems, renewable energy hydrogenproduction systems, smart operation and maintenance, charging equipment, newenergy investment and development, new energy vehicle electronic control andpower systems.

Localization issues are situations thatevery enterprise may encounter in the process of exploring new markets. Toovercome this challenge, one needs to put in effort. Firstly, it is necessaryto understand the local business environment and social culture, do homework inadvance, and avoid risk factors.

Secondly, there should be a strong salesand service network that can respond promptly to customer needs. For example,as of now, Chinese photovoltaic companies have business footprints in more than150 countries and regions including China, the United States, the UnitedKingdom, Germany, and Japan, and have promised to respond to overseas customerneeds within 48 hours. Sunshine Power has always adhered to a globaldevelopment strategy, with branches and sales networks in the Middle East andNorth Africa, providing localized services and support, which helps SunshinePower better cooperate with local customers and expand into the Iraqi market.The process of exploring new markets is the process of rooting, and the deeperthe roots are rooted, the more lush the branches and leaves become.

In the first nine months of this year,Sunshine Power achieved a revenue of 46.415 billion yuan, exceeding the annualrevenue of 40.257 billion yuan in 2022, reaching a new high. According to datafrom consulting research firm S&P Global Commodity Insight, in 2022, theshipment volume of solar power photovoltaic inverters reached 77 gigawatts,ranking first globally. In addition, its energy storage system shipped 7.7gigawatt hours in 2022. As of June 2023, Sunshine Power has achieved acumulative installed capacity of over 405 gigawatts of inverter equipment inthe global market.

With the Iraqi government initiatingbidding for renewable energy projects, the development process of thephotovoltaic industry in the country will accelerate, and Chinese companiesrepresented by Sunlight Power will also usher in greater market space.Photovoltaics will bring multiple benefits to the Iraqi market, includingeconomic and social benefits, with a bright future. At the same time, it isworth mentioning that this year marks the tenth anniversary of the jointconstruction of the "the Belt and Road" initiative and the 65thanniversary of the establishment of diplomatic relations between China andIraq. China Iraq energy cooperation is an important part of the "the Beltand Road" initiative. Chinese photovoltaic enterprises hope to continue topromote the development of Iraq's renewable energy industry and makecontributions to local green economic development and energy transformation.

As a Chinese photovoltaic enterprise, MULTIFITCompany has always been committed to playing an active role in the field ofsustainable energy. As a leader in the renewable energy industry, we willcontinue to maintain high-intensity research and development investment,continuously improve the efficiency of solar photovoltaic power generation, andintroduce more valuable technologies and products to Iraq. This will furtheraccelerate the pace of Iraq's energy transformation, which is of greatsignificance for the green, healthy, and sustainable development of the Iraqieconomy.