Energy Transformation in the Kurdistan Region: Clean Electricity Economy within the Scope of the Runaki Project

Toptancî, Alî (2025): Energy Transformation in the Kurdistan Region: Clean Electricity Economy within the Scope of the Runaki Project.

Abstract

This study will examine the economic impacts of a transformation in which clean energy becomes more prevalent in the Kurdistan Region, within the scope of the Runaki Project. The elimination of approximately 3,200 private generators within the scope of the Runaki Project marks the first step in transitioning to clean electricity in the Kurdistan Region. Thanks to the Runaki, cities such as Erbil, Duhok, Slemani, Halabja, and their districts started to have access to clean electricity and benefit from uninterrupted electrical energy. Before the Runaki Project, electricity costs in the Kurdistan Region were reflected in high bills due to private generators that took advantage of power outages and caused air pollution. Therefore, people’s budgets were negatively affected due to high electricity costs. In line with the decision taken by the Kurdistan Regional Government (KRG), with an investment of approximately $200 million regarding the Runaki Project, works are ongoing to eliminate air pollution, provide clean and uninterrupted electricity, and ensure that affordable electricity will be widespread throughout the Kurdistan Region by the end of 2026. In the long term, the transition to clean energy in the Kurdistan Region within the scope of the Runaki Project is expected to contribute to economic growth and prevent the recent slowdown in productivity in the Kurdistan Region. It is envisioned that the Runaki Project will contribute to economic prosperity in the Kurdistan Region within the context of the 2030-2050 Sustainable Development Goals (SDGs) and as a measure to mitigate the climate crisis resulting from global warming. In this context, the Runaki Project has observed that efforts to combat inflation, increase employment, and prevent recession in the Kurdistan Region are accelerating, yielding numerous economic benefits. The Runaki Project will enhance the electricity grid, lower electricity costs throughout the Kurdistan Region, and provide additional savings for the citizens of the Kurdistan Region.

• Item Type: MPRA Paper
• Language: English
• Keywords: Kurdistan Region, Runaki Project, clean electricity, uninterrupted electricity, economic growth, SDGs.
• Subjects: Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q4 - Energy > Q40 - General; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q4 - Energy > Q41 - Demand and Supply ; Prices; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q4 - Energy > Q42 - Alternative Energy Sources; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q4 - Energy > Q43 - Energy and the Macroeconomy; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q4 - Energy > Q48 - Government Policy; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q54 - Climate ; Natural Disasters and Their Management ; Global Warming; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q56 - Environment and Development ; Environment and Trade ; Sustainability ; Environmental Accounts and Accounting ; Environmental Equity ; Population Growth; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R1 - General Regional Economics > R11 - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R1 - General Regional Economics > R13 - General Equilibrium and Welfare Economic Analysis of Regional Economies; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R5 - Regional Government Analysis > R58 - Regional Development Planning and Policy

References

Apergis, N., & Payne, J. E. (2011). A dynamic panel study of economic development and the electricity consumption-growth nexus. Energy Economics, 33(5), 770-781.

Bakker, R. H., Pedersen, E., van den Berg, G. P., Stewart, R. E., Lok, W., & Bouma, J. (2012). Impact of wind turbine sound on annoyance, self-reported sleep disturbance and psychological distress. Science of the total environment, 425, 42-51.

Bazilian, M., Nussbaumer, P., Haites, E., Levi, M., Howells, M., & Yumkella, K. K. (2010). Understanding the scale of investment for universal energy access. Geopolitics of Energy, 32(10-11), 19-40.

Biggar, D. R., & Hesamzadeh, M. R. (2014). The economics of electricity markets. John Wiley & Sons.

Carley, S., Lawrence, S., Brown, A., Nourafshan, A., & Benami, E. (2011). Energy-based economic development. Renewable and Sustainable Energy Reviews, 15(1), 282-295.

Cherp, A., & Jewell, J. (2011). The three perspectives on energy security: intellectual history, disciplinary roots, and the potential for integration. Current opinion in environmental sustainability, 3(4), 202-212.

Davis, L. W. (2011). The effect of power plants on local housing values and rents. Review of Economics and Statistics, 93(4), 1391-1402.

Dröes, M. I., & Koster, H. R. (2016). Renewable energy and negative externalities: The effect of wind turbines on house prices. Journal of Urban Economics, 96, 121-141.

Eberhard, A., Foster, V., Briceño-Garmendia, C., & Shkaratan, M. (2010). Power: catching up. Africa’s infrastructure: A time for transformation, 181-202.

Edenhofer, O., Pichs-Madruga, R., Sokona, Y., Seyboth, K., Kadner, S., Zwickel, T., ... & Matschoss, P. (Eds.). (2011). Renewable energy sources and climate change mitigation: Special report of the intergovernmental panel on climate change. Cambridge University Press.

European Commission Directorate-General for Research. (2003). External Costs: Research results on socio-environmental impacts of electricity and transportation. Office for Official Publications of the European Communities.

Georgescu-Roegen, N. (1971). The Entropy Law and the Economic Process. Harvard University Press.

Jones, C. I. (2019). Paul Romer: Ideas, nonrivalry, and endogenous growth. The Scandinavian Journal of Economics, 121(3), 859-883.

Kraft, J., & Kraft, A. (1978). On the relationship between energy and GNP. The Journal of Energy and Development, 401-403.

Kümmel, R., & Lindenberger, D. (2020). Energy, entropy, constraints, and creativity in economic growth and crises. Entropy, 22(10), 1156.

Noronha, L., & Sudarshan, A. (2009). India's energy security (Vol. 73). London: Routledge.

Rosen, S. (1974). Hedonic prices and implicit markets: product differentiation in pure competition. Journal of political economy, 82(1), 34-55.

Roth, I. F., & Ambs, L. L. (2004). Incorporating externalities into a full cost approach to electric power generation life-cycle costing. Energy, 29(12-15), 2125-2144. Solow, R. M. (1956). A contribution to the theory of economic growth. The quarterly journal of economics, 70(1), 65-94.

Strbac, G. (2008). Demand side management: Benefits and challenges. Energy policy, 36(12), 4419-4426.

The Secretary-General’s Advisory Group On Energy and Climate Change (2010). Energy for a Sustainable Future: Summary Report and Recommendations.

Tiebout, C. M. (1956). A pure theory of local expenditures. Journal of political economy, 64(5), 416-424.

Weiss, L. W. (1973). Antitrust in the electric power industry. J. Reprints Antitrust L. & Econ., 5, 645.